Ahead Of The Bell: Owens-Illinois

HARTFORD, Conn. (AP) — The shutting of a Finnish glass container plant by Owens-Illinois Inc. could boost the glass maker's share price, an analyst said Friday.

The Perrysburg, Ohio-based company said Thursday it has closed the plant in Karhula, Finland, and transferred production to other plants. About 100 workers lost their jobs, Owens-Illinois said.

Owens-Illinois said shutting the plant will result in lower energy consumption and production costs. It is one of two in Europe that the company said will be closed in the second quarter. It did not identify the other plant.

R.W. Baird analyst Ghansham Panjabi said in a client note that shares could see a "modest positive reaction" to the closing.

The plant closing shows that Owens-Illinois is focused on balancing supply and demand, "versus a previous preference to chase market share," he said in a note to investors.

He expects Owens-Illinois to earn $3 per share this year.

Panjabi reiterated his "Outperform" rating and $38 price target.