Owens-Illinois, Inc. : O-I REPORTS FULL YEAR AND FOURTH QUARTER 2012 RESULTS Strong Cash Flow Generation and Improved Earnings

 Owens-Illinois, Inc. : O-I REPORTS FULL YEAR AND FOURTH QUARTER 2012 RESULTS
Strong Cash Flow Generation and Improved Earnings for the Full Year Driven by
                  Margin Recovery and Restructuring Benefits

FOR IMMEDIATE RELEASE

            O-I REPORTS FULL YEAR AND FOURTH QUARTER 2012 RESULTS
          Strong Cash Flow Generation and Improved Earnings for the
        Full Year Driven by Margin Recovery and Restructuring Benefits

PERRYSBURG, Ohio (January 30, 2013) - Owens-Illinois, Inc. (NYSE: OI) today
reported financial results for the full year and fourth quarter ending
December 31, 2012.

Highlights

  *Full year 2012 earnings from continuing operations attributable to the
    Company were $1.12 per share (diluted), compared with a loss of $3.06 per
    share in 2011. Excluding certain items management considers not
    representative of ongoing operations, adjusted earnings^[1] (non-GAAP)
    were $2.64 per share in 2012, compared with $2.43 per share in 2011. Full
    year 2012 adjusted earnings were up nearly 9 percent despite substantial
    foreign currency headwinds.
  *Fourth quarter 2012 adjusted earnings were $0.40 per share, compared with
    $0.48 per share in the same period of 2011. As expected, adjusted earnings
    were dampened by lower segment operating profit, primarily in Europe. This
    decrease was partially offset by a lower effective tax rate.

  *O-I generated $290 million in free cash flow^[2] (non-GAAP) for the full
    year 2012, up more than 30percent from 2011. The increase was driven by
    growth in earnings and improvements in working capital management. The
    Company's leverage ratio improved to 2.67 times EBITDA at year end 2012,
    compared to 2.88 times EBITDA at the end of prior year.
  *Interest expense declined in 2012 compared to the prior year, due in part
    to cash debt repayments of $321 million in 2012.

  *The Company successfully focused on initiatives to recover margin. Higher
    prices outpaced cost inflation for the year and also allowed partial
    recovery of unrecovered inflation in 2011.

  *Full year 2012 segment operating profit increased by $35 million versus
    the prior year, buoyed by improved manufacturing performance in North
    America and restructuring benefits in Asia Pacific.

  *The Company expects increased free cash flow in 2013, driven by improved
    operating results as cost efficiency and restructuring programs take hold,
    particularly in the second half of the year.

Commenting on 2012 results, Chairman and Chief Executive Officer Al Stroucken
said, "Our improved segment operating profit over 2011 reflects the success of
our pricing strategy to recover margins, as well as significant improvements
to the bottom line performance of our North American and Asia Pacific
operations. To enhance our competitiveness in the challenging European market,
we recently launched an asset optimization program aimed at more effectively
meeting customer requirements and improving profitability. Overall, we
continued to strengthen our balance sheet by generating significantly higher
free cash flow than in the prior year and further reducing our debt."
Full Year 2012

Full year net sales were $7.0 billion in 2012, down from $7.4 billion in 2011,
as unfavorable currency translation and a decline in volume were partially
offset by higher prices.

The Company achieved a more than 4 percent increase in price and product mix
in 2012. Improved price outpaced cost inflation by $128 million for the year,
and also allowed partial recovery of unrecovered inflation from 2011.

Volume declined 5 percent (tonnes shipped) compared with the prior year. This
decline was driven by Europe, where shipments slowed due to persistently
sluggish macroeconomic conditions, as well as a stronger than anticipated
share shift to smaller competitors in response to O-I's pricing strategy.

Segment operating profit increased by $35 million versus the prior year,
buoyed by improved manufacturing performance in North America and
restructuring benefits in Asia Pacific. The decline in segment operating
profit in Europe was largely due to the impact of lower sales and production
volume and foreign currency headwinds. On the whole, segment operating
margin^[3] expanded 100 basis points, reaching 13.4 percent for the full year
2012.

Net interest expense in 2012 declined by $39 million (excluding Note 1 charges
in 2011 related to debt refinancing activities) compared to the prior year,
primarily due to debt reduction and lower interest rates from refinancing
activities undertaken in 2011.

O-I reported full year 2012 earnings from continuing operations attributable
to the Company of $1.12 per share (diluted), compared with a loss of $3.06 per
share in 2011. Excluding certain items management considers not representative
of ongoing operations, adjusted earnings (non-GAAP) were $2.64 per share in
2012, compared with $2.43 per share in 2011.

In 2012, pension contributions were $219 million, up from $59 million in the
prior year, as the Company made significant discretionary contributions to
reduce long-term pension liabilities and increase the Company's future
financial flexibility.

Asbestos-related cash payments in 2012 amounted to $165 million, down $5
million from 2011. New lawsuits and claims filed in 2012 continued to decline
compared to the prior year. The Company conducted its annual comprehensive
review of asbestos-related liabilities in the fourth quarter of 2012. As a
result of that review, O-I recorded a charge of $155 million (before and after
tax amount attributable to the Company), as presented in Note 1.

The Company's cash flow focus continued to gain momentum in 2012. O-I
generated $290 million in free cash flow (non-GAAP) for the full year 2012,
compared with $220 million in 2011. The increase was due to growth in earnings
and improvements in working capital management.

The Company remained disciplined in its capital allocation, as evidenced by
cash debt repayments of $321 million and the repurchase of $27 million of the
Company's outstanding shares in 2012.

The Company's leverage ratio improved to 2.67 times EBITDA at year end 2012,
compared to 2.88 times EBITDA at the end of the prior year.

Fourth Quarter 2012
Net sales in the fourth quarter of 2012 were $1.75 billion, down from $1.82
billion in the prior year fourth quarter. Volume, in terms of tonnes shipped,
decreased by 7 percent year-over-year. The decline in volume was most
pronounced in Europe, due to lower end-use demand. South America continued to
report strong growth in volume.

O-I reported fourth quarter 2012 segment operating profit of $164 million,
down from $200 million in the prior year. Sales prices increased more than 5
percent, which outpaced the impact of cost inflation. However, this was more
than offset by lower global shipments and higher manufacturing and delivery
costs, primarily due to production curtailment in Europe.

Net interest expense was lower than the prior year, primarily due to debt
reduction and lower interest rates from refinancing activities undertaken in
2011.

Excluding the impact of items listed in Note 1, the Company's tax provision
from continuing operations was approximately $7 million in the fourth quarter
of 2012, compared to $23 million in the prior year period.

O-I's fourth quarter 2012 adjusted earnings were $0.40 per share, compared
with $0.48 per share in the same period of 2011, due to lower segment
operating profit.

In the fourth quarter of 2012, the Company recorded several significant
non-cash charges to reported results that are presented in Note 1 below.
Management considers these charges not representative of ongoing operations.

Outlook
Commenting on the Company's outlook for full year 2013, Stroucken said, "We
expect continued growth in emerging regions and stable market conditions in
North America. Macroeconomic uncertainty continues to challenge visibility in
Europe. In all, our global presence should enable us to achieve modest volume
growth in 2013, and we see higher prices keeping pace with cost inflation. We
are focused on our global cost reduction initiatives and our European asset
optimization program, which will drive continued growth in free cash flow and
earnings. While deleveraging remains our number one priority for capital
allocation, shareholders should expect continued modest share repurchases."

O-I expects full-year 2013 free cash flow to be at least $300 million, and
adjusted earnings to be in the range of $2.60 to $3.00 per share.

Note 1:
The table below describes the items that management considers not
representative of ongoing operations.

$ Millions, except per-share amounts          Three months ended December 31
                                                  2012              2011
                                            Earnings     EPS  Earnings     EPS
Loss from Continuing Operations               $(162) $(0.99)    $(774) $(4.71)
Attributable to the Company
Items that management considers not
representative of ongoing operations
consistent with Segment Operating Profit
Charge to adjust the carrying value of the                         640    3.86
Asia Pacific region's goodwill
Charge for asbestos-related costs                155    0.94       165    1.00
Restructuring, asset impairment and              121    0.73        63    0.38
related charges
Gain on China land compensation                 (33)  (0.20)
Net benefit related to changes in               (14)  (0.09)      (15)  (0.09)
unrecognized tax positions
Reconciling item for dilution effect^(1)                0.01              0.04
Adjusted Earnings                                $67   $0.40       $79   $0.48
$ Millions, except per-share amounts         Twelve months ended December 31
                                                  2012              2011
                                            Earnings     EPS  Earnings     EPS
Earnings (loss) from Continuing Operations      $186    1.12    $(501) $(3.06)
Attributable to the Company
Items that management considers not
representative of ongoing operations
consistent with Segment Operating Profit
Charge to adjust the carrying value of the                         640    3.86
Asia Pacific region's goodwill
Charge for asbestos-related costs                155    0.94       165    1.00
Restructuring, asset impairment and              144    0.87        91    0.54
related charges
Gain on China land compensation                 (33)  (0.20)
Net benefit related to changes in               (14)  (0.09)      (15)  (0.09)
unrecognized tax positions
Charges for note repurchase premiums and                            24    0.15
write-off of finance fees
Reconciling item for dilution effect^(1)                                  0.03
Adjusted Earnings                               $438   $2.64      $404   $2.43

(1) This reconciling item is related to the difference between the calculation
of earnings per share for reported earnings and adjusted earnings. For
reported earnings, for the three months ending December 31, 2012 and for the
three months and full year ended December 31, 2011, diluted earnings per share
of common stock were equal to basic earnings per share due to the loss from
continuing operations recorded in each period. Diluted shares outstanding were
used to calculate adjusted earnings per share for the three months and full
years ending December 31, 2012 and December 31, 2011.

Company profile
Owens-Illinois, Inc. (NYSE: OI) is the world's largest glass container
manufacturer and preferred partner for many of the world's leading food and
beverage brands. With revenues of $7.0 billion in 2012, the Company is
headquartered in Perrysburg, Ohio, USA, and employs approximately 22,500
people at 79 plants in 21 countries. O-I delivers safe, sustainable, pure,
iconic, brand-building glass packaging to a growing global marketplace. O-I's
Glass Is Life(TM) movement promotes the widespread benefits of glass packaging
in key markets around the globe. For more information, visit www.o-i.com or
www.glassislife.com.

Regulation G
The information presented above regarding adjusted net earnings relates to net
earnings attributable to the Company exclusive of items management considers
not representative of ongoing operations and does not conform to U.S.
generally accepted accounting principles (GAAP). It should not be construed as
an alternative to the reported results determined in accordance with GAAP.
Management has included this non-GAAP information to assist in understanding
the comparability of results of ongoing operations. Management uses this
non-GAAP information principally for internal reporting, forecasting,
budgeting and calculating bonus payments. Further, the information presented
above regarding free cash flow does not conform to GAAP. Management defines
free cash flow as cash provided by continuing operating activities less
capital spending (both as determined in accordance with GAAP) and has included
this non-GAAP information to assist in understanding the comparability of cash
flows. Management uses this non-GAAP information principally for internal
reporting, forecasting and budgeting. Management believes that the non-GAAP
presentation allows the board of directors, management, investors and analysts
to better understand the Company's financial performance in relationship to
core operating results and the business outlook.

The Company routinely posts important information on its website -
www.o-i.com/investors.

Forward looking statements
This document contains "forward looking" statements within the meaning of
Section 21E of the Securities Exchange Act of 1934 and Section 27A of the
Securities Act of 1933. Forward looking statements reflect the Company's
current expectations and projections about future events at the time, and thus
involve uncertainty and risk. The words "believe," "expect," "anticipate,"
"will," "could," "would," "should," "may," "plan," "estimate," "intend,"
"predict," "potential," "continue," and the negatives of these words and other
similar expressions generally identify forward looking statements. It is
possible the Company's future financial performance may differ from
expectations due to a variety of factors including, but not limited to the
following: (1) foreign currency fluctuations relative to the U.S. dollar,
specifically the Euro, Brazilian real and Australian dollar, (2) changes in
capital availability or cost, including interest rate fluctuations and the
ability of the Company to refinance debt at favorable terms, (3) the general
political, economic and competitive conditions in markets and countries where
the Company has operations, including uncertainties related to the economic
conditions in Europe and Australia, disruptions in capital markets,
disruptions in the supply chain, competitive pricing pressures, inflation or
deflation, and changes in tax rates and laws, (4) consumer preferences for
alternative forms of packaging, (5) cost and availability of raw materials,
labor, energy and transportation, (6) the Company's ability to manage its cost
structure, including its success in implementing restructuring plans and
achieving cost savings, (7) consolidation among competitors and customers, (8)
the ability of the Company to acquire businesses and expand plants, integrate
operations of acquired businesses and achieve expected synergies, (9)
unanticipated expenditures with respect to environmental, safety and health
laws, (10) the Company's ability to further develop its sales, marketing and
product development capabilities, and (11) the timing and occurrence of events
which are beyond the control of the Company, including any expropriation of
the Company's operations, floods and other natural disasters, events related
to asbestos-related claims, and the other risk factors discussed in the
Company's Annual Report on Form 10-K for the year ended December 31, 2012 and
any subsequently filed Quarterly Report on Form 10-Q. It is not possible to
foresee or identify all such factors. Any forward looking statements in this
document are based on certain assumptions and analyses made by the Company in
light of its experience and perception of historical trends, current
conditions, expected future developments, and other factors it believes are
appropriate in the circumstances. Forward looking statements are not a
guarantee of future performance and actual results or developments may differ
materially from expectations. While the Company continually reviews trends and
uncertainties affecting the Company's results of operations and financial
condition, the Company does not assume any obligation to update or supplement
any particular forward looking statements contained in this document.

Conference call scheduled for January 31, 2013
O-I CEO Al Stroucken and CFO Steve Bramlage will conduct a conference call to
discuss the Company's latest results on Thursday, January 31, 2013, at 8:00
a.m., Eastern Time. A live webcast of the conference call, including
presentation materials, will be available on the O-I website,
www.o-i.com/investors, in the Presentations & Webcast section.

The conference call also may be accessed by dialing 888-733-1701 (U.S. and
Canada) or 706-634-4943 (international) by 7:50 a.m., Eastern Time, on January
31. Ask for the O-I conference call. A replay of the call will be available on
the O-I website, www.o-i.com/investors, for 90 days following the call.

Contacts:    O-I, Erin Crandall, 567-336-2355 - Investor Relations
        O-I, Stephanie Johnston, 567-336-7199 - Corporate
Communications

Copies of O-I news releases are available on the O-I website at www.o-i.com.

O-I's first quarter 2013 earnings conference call is currently scheduled for
Wednesday, April 24, 2013, at 8:00 a.m., Eastern Time.
[1]Adjusted earnings refers to earnings from continuing operations
attributable to the Company, excluding items management does not consider
representative of ongoing operations as cited in Note 1 in this release.
[2]Free cash flow is calculated as cash provided by continuing operating
activities less capital expenditures.
[3]Segment operating margin is defined as segment operating profit divided by
segment sales.

O-I 4Q & FY12 Earnings Presentation
O-I 4Q & FY12 Earnings Press Release

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information contained therein.

Source: Owens-Illinois, Inc. via Thomson Reuters ONE
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