NEW YORK (AP) -- Shares of Owens-Illinois Inc. jumped nearly 9 percent Thursday, after the glass container company's new chief financial officer backed the company's third-quarter outlook in his comments at an investor conference.
THE SPARK: Stephen Bramlage, who became CFO at the end of the second quarter, told investors that despite tough market conditions in many parts of the world, the company's third-quarter outlook hasn't changed.
In July, Owens-Illinois said that its third-quarter profit would likely be down from year-ago levels, mainly as a result of lower European demand. It added that it expected its results for the rest of the year to be hurt by the effects of unfavorable exchange rates.
THE BIG PICTURE: "If I had to summarize overall, I would say our adjusted earnings expectations for the quarter are unchanged." Bramlage said at the Thursday conference. "The mix has changed a little bit in terms of what's driving some of the results. But overall, we're consistent with what we had indicated when we had our earnings call in July."
Owens-Illinois said it July that it expected third-quarter European shipments to drop by the mid- to high-single digits, compared with year-ago levels. But now the company expects those shipments to drop by the high-single digits, Bramlage said.
Meanwhile, South American operating profit is now projected to be flat to up a little, which is slightly better than previously expected, he said.
Analysts are expecting adjusted third-quarter profit of 68 cents per share on $1.75 billion in revenue, according to FactSet.
Earlier this week, Owens-Illinois said that a judge in Illinois had granted its motion to vacate its part of a nearly $90 million jury verdict handed down in 2011. The suit charged that Owens-Illinois and other companies conspired to hide or misrepresent information about the health risks associated with asbestos exposure.
The ruling affects the $9.6 million in compensatory damages that had been assessed against all of the defendants and $40 million in punitive damages levied against Owens-Illinois.
The company said it was pleased with the ruling, which is subject to appeal, but doesn't expect to make any changes to its 2012 financial outlook as a result.
THE SHARES: Up $1.53 to $18.79, after peaking at $19.05 earlier in the day. The company's shares are up about 8 percent for the past year but are off their 52-week peak of $25.46 reached in January.
