Owens-Illinois, Inc.: O-I REPORTS FULL YEAR AND FOURTH QUARTER 2013 RESULTS Focused Execution Delivers Higher Earnings and

 Owens-Illinois, Inc.: O-I REPORTS FULL YEAR AND FOURTH QUARTER 2013 RESULTS
  Focused Execution Delivers Higher Earnings and Double-Digit Growth in Free
                                  Cash Flow




FOR IMMEDIATE RELEASE

            O-I REPORTS FULL YEAR AND FOURTH QUARTER 2013 RESULTS
  Focused Execution Delivers Higher Earnings and Double-Digit Growth in Free
                                  Cash Flow

PERRYSBURG, Ohio (Jan. 28, 2014) - Owens-Illinois, Inc. (NYSE: OI) today
reported financial results for the full year and fourth quarter ending
December 31, 2013.

Highlights

  *Full year 2013 earnings from continuing operations attributable to the
    Company were $1.22 per share (diluted), compared with $1.12 per share in
    2012. Excluding certain items management considers not representative of
    ongoing operations, adjusted earnings^[1] were $2.72 per share compared
    with $2.64 per share in the prior year. 
  *Fourth quarter 2013 adjusted earnings were $0.51 per share, compared with
    $0.40 per share in the same period of 2012. Earnings improvement was
    driven by higher sales and production volume, as well as structural cost
    savings.

  *O-I generated $339 million of free cash flow (non-GAAP) for the full year
    2013. Free cash flow increased 17 percent due to higher segment operating
    profit, improvement in working capital and lower pension contributions. 

  *The Company repaid nearly $300 million of debt, in line with its
    disciplined capital allocation program. O-I's leverage ratio^[2] was 2.6
    at year end, an improvement over prior year. 
  *Full year segment operating profit increased by $12 million versus the
    prior year due to a global focus on structural cost reductions. Global
    volumes for 2013 were flat with prior year. Broad-based weakness in beer
    was largely offset by gains in wine, especially in Europe.

  *The Company expects to generate approximately $350 million of free cash
    flow in 2014.

Commenting on the Company's 2013 results, Chairman and Chief Executive Officer
Al Stroucken said, "Our strong free cash flow generation and earnings growth
demonstrate our success in executing on our strategic agenda. We remain
focused on driving structural cost reductions, optimizing our asset base and
smoothing production. The bottom line benefits of these efforts were partially
masked by ongoing economic weakness in Europe, and volatility in South
America. As committed, we are using most of our free cash flow to enhance our
financial flexibility, while also repurchasing more than a million shares."
Full Year 2013
Full year net sales were flat with prior year, at $7.0 billion. Price
increased 2 percent, while currency was a 1 percent headwind, primarily due to
the Brazilian Real and the Australian Dollar.

Volume for the full year 2013 was essentially flat with prior year. While beer
volumes declined in all regions, wine volumes increased, led by successful
initiatives to recapture wine business in Europe.

Segment operating profit was $947 million for 2013, up more than one percent
over prior year. Structural cost reductions and asset optimization programs
improved margins in North America and Asia Pacific. In South America,
profitability was diminished by persistent currency headwinds and a general
strike in Colombia. European operating profit was flat as the benefits of
asset optimization were offset by modestly lower volumes and sales mix.

Full year 2013 earnings from continuing operations attributable to the Company
were $1.22 per share (diluted), compared with $1.12 per share in full year
2012. Excluding certain items management considers not representative of
ongoing operations, adjusted earnings were $2.72 per share compared with $2.64
per share in the prior year.

In 2013, pension contributions were nearly $100 million, which significantly
exceeded required plan contributions because the Company continued to make
discretionary payments in an effort to reduce long-term pension liabilities
and increase the Company's future financial flexibility.

For the sixth consecutive year, cash payments for asbestos-related liabilities
declined. In 2013, payments were $158 million, down $7 million from 2012, and
the number of new filings decreased from prior year. In the fourth quarter of
2013, the Company conducted its annual comprehensive review of asbestos
related liabilities. As a result of that review, O-I recorded a charge of $145
million, as presented in Note 1.

The Company's focus on cash gained further momentum in 2013. Cash from
continuing operations reached $700 million, up 21 percent from prior year. The
Company generated $339 million of free cash flow (non-GAAP) in 2013, a 17
percent increase compared to prior year. Higher segment operating profit,
improvement in working capital and lower pension contributions were the key
drivers for the strong cash growth.

The Company's disciplined capital allocation approach allowed debt repayment
of nearly $300 million and the repurchase of $33 million of the Company's
outstanding shares in 2013.

The Company's leverage ratio improved to 2.6 at year end 2013.

Fourth Quarter 2013
Net sales in the fourth quarter of 2013 were $1.76 billion, similar to the
prior year fourth quarter. The Company benefited from price gains of 1
percent, and recorded a currency headwind of 2 percent. For the second
consecutive quarter, volume in terms of tonnes shipped was up 2 percent
compared with the same quarter in the prior year. The increase was primarily
driven by global wine gains, as well as moderately higher beer volumes in
North and South America.

Fourth quarter 2013 segment operating profit was $195 million, up 19 percent
over fourth quarter 2012. The Company's efforts to better manage production
levels throughout the year obviated the need to sharply curtail production in
the fourth quarter as was done in the previous year. The Company also
benefited from ongoing structural cost reductions.

Fourth quarter 2013 adjusted earnings were $0.51 per share, compared with
$0.40 per share in the same period of 2012. The increase is primarily
attributable to higher segment operating profit, resulting from higher sales
and production volume as well as structural cost savings.

In the fourth quarter of 2013, the Company recorded several significant
non-cash charges to reported results as presented in Note 1 below. Management
considers these charges not representative of ongoing operations.

Outlook
Commenting on the Company's outlook for 2014, Stroucken said, "We are not
expecting a dramatic improvement in global macroeconomic conditions in 2014.
We will stay the course by focusing on structural cost reductions and European
asset optimization initiatives, all of which are on track to drive continued
growth in free cash flow and earnings. We are also investing for the long
term. Our innovation center, which also serves as a pilot plant, will enable
us to develop technologies to improve manufacturing efficiencies and increase
speed to market. In all, we envision that our lean manufacturing footprint,
market-focused organization and strong balance sheet will deliver increasing
shareholder value."

O-I expects full year 2014 free cash flow to be approximately $350 million and
adjusted earnings to be in the range of $2.80 to $3.20 per share. The Company
plans no change to its capital allocation priorities: approximately 90 percent
of free cash flow will be apportioned to debt repayment with the remainder to
be used for share repurchases.

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
                                                  2013              2012
                                            Earnings     EPS  Earnings     EPS
Earnings (Loss) from Continuing Operations    $(144) $(0.88)    $(162) $(0.99)
Attributable to the Company
Items that management considers not
representative of ongoing operations
consistent with Segment Operating Profit
Charge for asbestos-related costs                145    0.87       155    0.94
Restructuring, asset impairment and               84    0.51       121    0.73
related charges
Gain on China land compensation                    -       -      (33)  (0.20)
Net benefit related to changes in                                 (14)  (0.09)
unrecognized tax positions
Reconciling item for dilution effect^(1)           -    0.01         -    0.01
Adjusted Net Earnings                            $85   $0.51       $67   $0.40

$ Millions, except per-share amounts           Twelve months ended December 31
                                                    2013            2012
                                               Earnings   EPS  Earnings    EPS
Earnings from Continuing Operations                $202 $1.22      $186  $1.12
Attributable to the Company
Items that management considers not
representative of ongoing operations
consistent with Segment Operating Profit
Charge for asbestos-related costs                   145  0.87       155   0.94
Restructuring, asset impairment and related          92  0.56       144   0.87
charges
Gain on China land compensation                                    (33) (0.20)
Net benefit related to changes in                                  (14) (0.09)
unrecognized tax positions
Charges for note repurchase premiums and             11  0.07         -      -
write-off of finance fees
Adjusted Net Earnings                              $450 $2.72      $438  $2.64

(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, 2013 and December
31, 2012, 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, 2013 and
December 31, 2012.

About O-I
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. The Company had revenues of $7.0 billion in 2013 and employs
approximately 22,500 people at 77 plants in 21 countries. With global
headquarters in Perrysburg, Ohio, USA, O-I delivers safe, sustainable, pure,
iconic, brand-building glass packaging to a growing global marketplace. For
more information, visit www.o-i.com.

O-I's Glass Is Life(TM) movement promotes the widespread benefits of glass
packaging in key markets around the globe. Join us in the #betteringlass
conversation at 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 compensation 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
and social conditions in Australia, Europe and South America, 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 10K for
the year ended December 31, 2012 and any subsequently filed Annual Report on
Form 10K or Quarterly Report on Form 10Q. 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 29, 2014
O-I CEO Al Stroucken and CFO Steve Bramlage will conduct a conference call to
discuss the Company's latest results on Wednesday, January 29, 2014, 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
29. 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.

Contact:    Erin Crandall, 567-336-2355 - O-I Investor Relations
Lisa Babington, 567-336-1445 - O-I Corporate Communications

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

O-I's first quarter 2014 earnings conference call is currently scheduled for
Wednesday, April 30, 2014, 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]The leverage ratio is calculated as total debt, less cash, divided by
adjusted EBITDA as presented in the appendix of the accompanying presentation.

Fourth Quarter 2013 Earnings Release
4Q13 Earnings Presentation

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This announcement is distributed by NASDAQ OMX Corporate Solutions on behalf
of NASDAQ OMX Corporate Solutions clients.
The issuer of this announcement warrants that they are solely responsible for
the content, accuracy and originality of the information contained therein.
Source: Owens-Illinois, Inc. via Globenewswire
HUG#1757581
 
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