Goldman Lowers Estimates on Owens-Illinois, Silgan

Goldman Sachs is lowering 3Q10 EPS estimates for Owens-Illinois OI and Silgan Holdings SLGN on weaker volume growth. Goldman is reduce its EPS estimate for Pactiv PTV on lower margins. We maintain our 3Q2010 estimates for Ball BLL, Crown CCK, Graham GRM, Sealed-Air SEE, and Sonoco SON. Goldman expects solid 3Q results and forecast earnings will be 1.5% YoY, on average, for the coverage group driven by emerging market growth, cost savings benefits, and less interest expense. US glass volumes remained weak in 3Q2010. US carbonated soft drink consumption was sluggish in 3Q, and weaker than 2Q2010 on lower promotional activity. However, producer commentary suggests glass and metal can volumes continued to be robust in the emerging markets. Goldman reiterates its Buy on BLL and CCK based upside to 2011 consensus estimates, and expecting significant share buyback in 2011, and valuations remain interesting. BLL closed Wednesday at $61.97 CCK closed Wednesday at $29.22