Owens-Illinois (NYSE:OI) is about to release earnings results. Ponder this Bear Case Scenario as you listen to management comments.
O-I’s frequent need to restructure is a sign that the company often struggles to match regional supply with demand.
Age olde asbestos liabilities and uncomfortably wide pension deficit will prevent it from making the investments it needs to defend its market-leading position.
The prospect of substitution is extremely high. Glass has a shrinking market share compared to plastic and metal packaging in almost all regions and all products. If this trend continues, O-I’s top and bottom lines are likely to suffer.
George Gutowski writes from a caveat emptor perspective.