S&P: Owens-Illinois unaffected

Standard & Poor's said that Owens-Illinois Inc.'s (BB-/negative/--) earnings growth in the fourth quarter of 2004 over the previous year has no impact on the ratings or outlook of the company.

Higher earnings in the quarter were supported by volume growth in glass and plastic containers, the inclusion of the acquired BSN Glasspak SA operations, improved pricing, and productivity improvements, which were partially offset by higher energy costs.

The company plans to reduce debt by about $300 million in 2005, and continued free cash generation (after cash asbestos payments) used for debt reduction should improve credit measures to appropriate levels in the intermediate term, the agency said.

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