Owens-Illinois ranks cutting debt before share repurchases, dividends

By Lisa Kerner

Charlotte, N.C., Oct. 1 - Owens-Illinois, Inc. chief financial officer Edward C. White said preserving liquidity in today's market is prudent which is why share repurchases and dividends are not high on the company's priority list.

White made his remarks during a presentation at Deutsche Bank's 17th Annual Leveraged Finance Conference in Scottsdale, Ariz., on Thursday.

Owens-Illinois is focused on organic growth investments and debt reduction as well as acquisition opportunities.

"We will always be opportunistic and will look at acquisitions throughout the world if they complement our strategies," White said, noting that the company has completed 10 acquisitions in 10 years.

According to White, key markets for bolt-on acquisition opportunities include Latin America, southeast Asia and southeast Europe.

White also provided some financial highlights during his presentation.

The company had more than $300 million in free cash flow in the last 12 months and has $800 million available under its global revolving credit facility.

At June 30, the company had $3.642 billion in debt, up from $3.326 billion in the first quarter of 2009.

Owens-Illinois had cash and cash equivalents of $677 million at the end of the second quarter.

During the quarter, the company had $77.5 million in capital investments and expected full year capital investments of about $40 million, according to the presentation.

Owens-Illinois is a Perrysburg, Ohio-based manufacturer of recyclable glass containers.

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