Tuesday, May 05, 2015
Current Weather
Loading Current Weather....
Published: Friday, 4/26/2002

O-I shares fall 21% on asbestos worries


Shares of Toledo's Owens-Illinois, Inc. fell $3.71 or 21 percent Wednesday and yesterday as investors sold the stock following the company's announcement that it was again increasing its estimate for settling asbestos liability lawsuits.

Nearly 5 million shares - four times the usual two-day volume - have changed hands on the New York Stock Exchange since the company late Tuesday said it had taken a $475-million accounting charge in the first quarter to increase its asbestos-liability reserve.

It was the second time in two years the company increased the estimate. O-I shares closed down $2.70 at $14.25 yesterday.

Executives of the bottle and jar manufacturer have said the firm's financial position is sound, and that O-I won't be forced into bankruptcy like many other asbestos producers. Standard & Poor's said Wednesday the asbestos reserve increase "raises concerns because the liability has exceeded earlier estimates and suggests that Owens-Illinois' obligations relative to asbestos may decline more slowly than previously expected."

Recommended for You

Guidelines: Please keep your comments smart and civil. Don't attack other readers personally, and keep your language decent. If a comment violates these standards or our privacy statement or visitor's agreement, click the "X" in the upper right corner of the comment box to report abuse. To post comments, you must be a Facebook member. To find out more, please visit the FAQ.