Owens-Illinois cuts 2Q adjusted earnings outlook

PERRYSBURG, Ohio — Owens-Illinois Inc. is cutting its second-quarter earnings outlook as it faces additional manufacturing and delivery costs.

Its shares tumbled $2.74, or 9.3 percent, to $26.80 in morning trading.

The glass container company said Wednesday that it expects its adjusted earnings will decline, but did not provide a specific figure. It previously forecast that the results would be in line with the prior-year's 90 cents per share.

Analysts polled by FactSet predict earnings of 85 cents per share.

Owens-Illinois anticipates quarterly global shipment levels will rise 5 percent to 10 percent, helped by acquisitions made last year. The company said demand is still strong across most markets but that it is dealing with higher-than-expected costs.

Stronger currencies in Australia and New Zealand have hurting Owens-Illinois exports, including wine. People in Australia are also drinking less beer, with the company indicating that higher interest rates are leading to less discretionary spending. With demand dropping in the Asia Pacific region, Owens-Wilson temporarily slowed down productions which resulted in some unanticipated manufacturing costs.

In North America, supply chain issues led to increased manufacturing and delivery costs. Inventory levels were also too low in some areas. To meet this higher demand Owens-Illinois incurred additional delivery costs.