Investing.com -- Shares in Owens-Illinois Inc (NYSE:OI) surged nearly 6% in after-hours trading after the Ohio-based glass product container manufacturers topped analysts' quarterly revenue and earnings expectations on Monday evening.
For the first quarter, Owens-Illinois, one of the world's top manufacturers of glass packaging products, reported earnings of $67 million or 0.41 per share on sales of $1.59 billion. The sharp sales gains represent a spike of 11.8% in revenues on an annual basis, amid solid progress with its strategic plan and favorable foreign exchange conditions. Analysts expected Owens-Illinois to reported earnings per share of 0.40 on revenues of $1.54 billion. On a constant currency basis, Owens-Illinois said it posted the highest adjusted earnings in recent periods, up 33% from the same quarter last year.
"We delivered solid improvement in our financials this quarter thanks to the hard and disciplined work of our teams that are focused on stabilizing and improving our operational performance," Owens-Illinois CEO Andres Lopez said in a statement. "The momentum we are building gives us confidence that our strategy - designed to generate significant, long-term value across the company - is taking hold."
Owens-Illinois also disclosed to shareholders that it will amend its Form 10-K for the year ending on December, 31, 2015, in order to record its total asbestos-related liability in relevant prior periods. Utilizing a model with actuarial inputs while consulting with consultants, the company developed a new method for estimating its asbestos-related liability. Under the new model, Owens-Illinois expects to increase its liability to $806 million, up by $295 million from previous estimates. The company also expects its asbestos-related payments to continue declining in subsequent periods.
Owens-Illinois also increased its annual Adjusted EPS guidance on Monday to 2.25-2.35, up from previous estimates of 2.10 to 2.35.
"In fact, our expectations for strong business performance plus the recent dollar weakening have favorably impacted our full year guidance for both adjusted earnings per share and free cash flow generation," Lopez added. "We will continue our focus on execution to achieve our financial commitments."
Shares in Owens-Illinois jumped 1.10 or 5.91% to 19.71 in after-hours trading.