Owens-Illinois delivers solid financial performance
Owens-Illinois has reported full year net sales of $6.9 billion for the past 12 months, representing an increase of $8 million compared to the previous year. Prices were 2% higher on a global basis, due mainly to a favourable sales mix and ongoing cost inflation. Total glass container shipments fell by nearly 2%, driven by the transfer of production to the company’s joint venture with Constellation Brands, ongoing trends in the US beer sector, plus discrete events and capacity constraints in both the Americas and Europe.
The joint venture with Constellation Brands in Mexico continues to perform well, again delivering higher sales, driven in part by the commissioning of a fourth furnace in early 2018. A fifth furnace is expected to be completed by the end of 2019.
“In line with our guidance, the company delivered solid financial performance in 2018, demonstrating growing resilience in overcoming currency and inflationary headwinds” said Andres Lopez, CEO. “We continue to progress in our ability to deliver, while also investing to support future shareholder value creation.”
According to Mr Lopez, throughout 2018, Europe’s focus on the top line – sales mix management and premium products – and the benefits of Total System Cost efforts drove higher profits and strong margin expansion. Over the course of the year, the Americas team responded to several unplanned headwinds and the stronger US dollar by growing sales volume outside the USA and reducing structural costs across the region.
“Asia Pacific completed its 2018 asset advancement programme and finished the year with a strong margin, as expected” Adres Lopez confirmed. “Given favourable market trends, ascribable growth opportunities and continued structural cost reductions, the company expects higher earnings and cash flow generation in 2019, consistent with our Investor Day commitments.”