ANCHOR GLASS <AGLS> NOW SEES HIGHER 1ST QTR NET Anchor Glass Container Corp said first quarter net income is now expected to exceed the 3.1 mln dlrs earned before extraordinary items in the year earlier quarter. Previously, the company had said first quarter results would likely be lower than for the 1986 period due to production disruptions caused by the large number of production line changes scheduled during the first quarter, its statement pointed out. While the disruptive effects of the production line changes had occurred in line with expectations, Anchor Glass said, first quarter operating results were helped by lower than anticipated operating costs and improved margins on sales as a result of a more favorable product mix. The company said its income performance for the full year remains very good. It also said Anchor Hocking Corp <ARH> has converted the entire principal balance of its Anchor Glass convertible subordinated note to 576,694 Anchor Glass common shares. Anchor Glass said the conversion decreased its total debt and increased stockholders' equity by about 9.4 mln dlrs and increased common shares outstanding to 13,902,716. It said the conversion will also reduce its annualized net interest expense by about 1.1 mln dlrs, or 600,000 dlrs after taxes.