Glass container manufacturer Owens-Illinois has reported net earnings of $127m for the third quarter of 2018, compared to $133m for the same period last year.
Owens-Illinois said net sales declined 3% to $1.73bn in Q3, compared to $1.79bn in the prior year quarter, largely due to the adverse impact of the stronger US dollar.
Earnings from continuing operations before income taxes were $168m for the third quarter compared with $172m for the same period in 2017.
Global sales shipments were down 2% compared with prior year. The company said shipments declined compared with prior year, primarily due to the transfer of production to its joint venture (JV) with Constellation Brands and the impact of the poor 2017 grape harvest in Europe.
Owens-Illinois noted that the headwinds were partially offset by price gains, which were reported in all segments.
The company noted that its JV with Constellation Brands continues to do well, again reporting higher sales compared with prior year, driven in part by the fourth furnace that ramped up earlier in 2018. The fifth furnace is anticipated to start operations by the end of 2019.
For the full year 2018, Owens-Illinois expects earnings from continuing operations to be in the range of $2.26 to $2.32 per share.
Owens-Illinois CEO Andres Lopez said the third quarter results were in line with management’s guidance, despite headwinds from foreign currency and transitory volume trends.
Lopez said: “Our European operations profited from ongoing favorable sales mix, pricing dynamics and continued cost reduction efforts. In the Americas, O-I demand for glass was modestly positive when incorporating the strong year-on-year performance of our joint venture with CBI.”
“In Asia Pacific, we successfully completed our asset advancement projects for the year and will return the region to more normalized margins in the fourth quarter.”
Owens-Illinois is claimed to be the world’s largest glass container manufacturer and preferred partner for several food and beverage brands.
The company, which had revenues of $6.9bn in 2017, employs over 26,500 people at 78 plants in 23 countries.