Results for the third quarter of 2003 included charges of $37.4 million ($23.4 million after tax) for the estimated loss on the pending sale of the Company's specialty closures assets, and $28.5 million ($17.8 million after tax) for the permanent closure of the Company's Hayward, Calif., glass container factory, both of which are discussed below. The after-tax effect of these two charges is a reduction of $0.28 in earnings per share.
Operating results in the third quarter of 2003 continued to be unfavorably impacted by higher energy costs, reduced pension income, modestly lower glass unit shipments in North America, and competitive pricing pressures in most of the Company's plastics businesses.
Joseph H. Lemieux, Owens-Illinois Chairman and Chief Executive Officer said, "I am pleased that both our glass and plastic businesses reported higher sales for the third consecutive quarter. Another high point of the third quarter was increased EBIT from our glass businesses compared with prior year despite higher energy costs and lower pension income. As momentum continues to build across our operations, we are focused on enhancing liquidity, improving productivity, pursuing cost-saving opportunities and driving solid earnings performance going forward."