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Cramer Still Bullish on Owens-Illinois

Owens-Illinois’ stock is down about 3% since the company reported first-quarter numbers on April 30 – despite the fact that OI actually tripled its profits in the first quarter. Wall Street seems more concerned with rising costs.

OI Chairman and CEO Albert Stroucken, in a studio interview on Tuesday’s Mad Money, pointed out that pricing is up, too, which “absolutely” makes up any increase in spending.

Maybe the CEO’s warning that investors shouldn’t expect the same level of growth from Owens-Illinois the next time around disappointed analysts. But Stroucken was just covering his bases.

“We had a dramatic improvement in profitability because we had been underperforming for a number of years,” he said. Now that OI is operating at a higher level profit growth may not be as high, “but it still is going to be a good year-over-year comparison.”

So why the analysts’ overreaction?

“If I could figure out the stock market,” Stroucken said, “I wouldn’t have to work for a living.”

Regardless of what Wall Street thinks, Cramer said he’s still bullish on Owens-Illinois, calling the stock a great green play fueled by a booming international economy.

Jim’s charitable trust owns Owens-Illinois.

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