First Quarter 2017 Net Sales Essentially Flat for O-I
For the first quarter, O-I recorded earnings from continuing operations of $.30 per share (diluted), compared with $.42 per share in the 2016 first quarter.
Owens-Illinois, Inc. (O-I) recently reported financial results for the first quarter ended March 31. For the first quarter, the company recorded earnings from continuing operations of $.30 per share (diluted), compared with $.42 per share in 2016. It was suggested that improved segment operating profit was offset by higher charges primarily related to restructuring and bond redemption fees.
Excluding certain items management considers not representative of ongoing operations, adjusted earnings were reportedly $.58 per share. This was up 21% compared with prior year and exceeded guidance of $.50 to $.55 per share.
Also reported were net sales at $1.6 billion, up 2% from the prior year’s first quarter. Sales volume for the quarter increased 2% compared to the prior year, partially driven by new business development. Europe, Asia-Pacific and Latin America each reported sales volume growth of more than 3%.
Earnings from continuing operations before income taxes were $73 million for the 2017 first quarter, compared with $101 million for the same period in 2016. Segment operating profit of reportable segments for the first quarter of 2017 was $218 million, an increase of 3% compared with the 2016 first quarter. All regions except Latin America posted higher segment operating profit compared with the first quarter of 2016. In Latin America, the benefit from strong sales volume was more than offset by cost inflation, as expected.
The company plans to continue to execute on its strategic initiatives focused on commercial activities and end-to-end supply chain. The focus on total systems cost is reportedly on track to yield $35 million to $45 million in segment operating profit for the full year.
“We are pleased to announce another quarter of positive progress on our transformation and toward our investor day goals,” said Andres Lopez, CEO. “We delivered organic sales growth and margin expansion through the disciplined execution of our strategy. For the full year, we are committed to achieving solid sales and earnings growth in line with our prior guidance and are confident that the improved financial and operational stability we are achieving will help us generate greater value for our shareholders.”
For more information, visit www.o-i.com.