Sales Dip Slightly for O-I in 2019 First Quarter
O-I’s first quarter 2019 net sales were $1.6 billion, compared to $1.7 billion in the prior year, driven primarily by the stronger U.S. dollar.
Owens-Illinois, Inc. (O-I) recently reported financial results for the first quarter ended March 31, 2019. First quarter 2019 net sales were $1.6 billion, compared to $1.7 billion in the prior year, driven primarily by the stronger U.S. dollar. Average selling prices improved 2% on a global basis, mainly due to price adjustment formulas, while sales volumes declined 2.5% globally.
After adjusting for the planned shift in production from the U.S. to the strategic joint venture with CBI, which would equate to approximately 1.5% of global sales volume, globally, sales volumes declined approximately 1%. In the Americas, organic sales increased after excluding the volume shift to the strategic joint venture. Brazil, Mexico, and the Andean region reported broad-based gains in shipments, compared to the prior year, and U.S. beer sales volume stabilized. Europe and Asia-Pacific shipments declined compared to the prior year first quarter, as customers rebalanced their supply chain.
“Our first quarter results were in line with our guidance as the company commissioned new capacity to support future growth,” said Andres Lopez, CEO. “In addition, we announced future expansion at our Gironcourt, France, plant as well as a definitive agreement to acquire the Nueva Fanal operations in Mexico from ABI. All of these actions support key strategic customers, align O-I to attractive premium segments and will drive future profitable growth.
“Segment profit and margins improved in both Europe and Asia Pacific compared to the prior year. Profits declined in the Americas, reflecting foreign currency headwinds and incremental costs to commission new capacity which was concentrated in this region during the first quarter. Our teams are aligned and energized like never before, executing growth with rigor and discipline. This, combined with our balanced capital allocation strategy, is expected to create significant value for our shareholders for years to come.”
Additional details are available at www.o-i.com.