Owens Illinois Inc (OI) SEC Filing 10-K Annual report for the fiscal year ending Tuesday, December 31, 2013

Exhibit 99.1

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)

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.”