Strong second-quarter sales in South America along with modest sales in Europe and North America helped glass maker Owens-Illinois Inc. post solid net adjusted earnings — a measure watched closed by Wall Street.
In reporting its second-quarter earnings Tuesday, the Perrysburg-based company posted revenues of $1.797 billion, up 1 percent from a year ago, when it had sales of $1.781 billion.
Sales in terms of tons shipped increased in three of the company’s four regions, although global volume slipped 1 percent year-over-year because of a shrinking Asia Pacific market.
Volume increased 2 percent in Europe, 1 percent in North America, and 8 percent in South America, buoyed by strong demand in Brazil and volume gains in the Andean countries.
The decrease in Asia Pacific was 27 percent primarily because of the company’s smaller footprint in China, as well as ongoing weak demand in Australia, the company said.
Net profits for the quarter were $114 million, or 68 cents per share. That is down 13 percent from the same period a year earlier, when net profits were $132 million, or 80 cents per share. However, the company’s adjusted earnings from continuing operations for the quarter was $134 million, or 80 cents per share. That is down just slightly from $135 million, or 81 cents a share, a year ago.
Al Stroucken, O-I’s chairman and chief executive officer, said he was pleased with the company’s earnings. “Our performance in the second quarter was in line with our expectations,” he said. “We are pleased with the positive volume growth we achieved in three of our four regions.”
The CEO said that the higher profitability in South America, likely a benefit from the World Cup soccer tournament in Brazil, was modestly overshadowed by supply-chain challenges in North America.
In Europe, the company experienced stoppage in production because of engineering activities related to the company’s asset optimization program, as well as rebuilding of its furnaces.
The production downtime offset the benefits of higher sales volumes, Mr. Stoucken said.
The results were announced after the stock market closed Tuesday. The company’s shares fell 34 cents to close at $32.45 a share on the New York Stock Exchange on Tuesday. The stock is down about 9 percent for the year.
Contact Jon Chavez at: email@example.com or 419-724-6128.