“Solid” first quarter results released by glass packaging specialist
O-I’s first quarter results are described by Andres Lopez, CEO as “solid”, with results benefitting from favourable process and mix, as well as good cost performance. “At the same time, shipment levels were slightly below (the same period) last year, reflecting the initial impact of the Covid-19 pandemic and the volume pressures have continued in April” he explained. “Consistent with our focus on cash generation, cash flows compared favourably to the same period in the prior year and liquidity was strong at the end of the first quarter.”
According to Mr Lopez, fortunately, the manufacture of glass containers has been largely viewed as essential to the important food and beverage value chain in the countries in which the glassmaker operates. “However, we are still impacted by the broader supply chain issues and in some cases, certain end use categories that we serve are not deemed essential” he added. “Reflecting the challenges with the Covid-19 pandemic, O-I’s shipment in tons during the last two weeks of March were down 7% overall, with the most significant reductions in Latin America, where government restrictions have been most stringent and Europe.”
The company has temporarily curtailed some capacity to adapt to revised customer demand and in compliance with governmental public health decrees in certain countries. Shipments were unfavourably impacted in April, driven primarily by government restrictions. Conditions are expected to improve as markets reopen, however.
