O-I: 2Q 2010 results

O-I has reported its second-quarter 2010 results, with net earnings of USD 0.85 per share (diluted), compared to USD 0.88 per share in same period of 2009. Adjusted net earnings (non-GAAP) of USD 0.90…

O-I has reported its second-quarter 2010 results, with net earnings of USD 0.85 per share (diluted), compared to USD 0.88 per share in same period of 2009. Adjusted net earnings (non-GAAP) of USD 0.90 per share decreased from USD 0.94 per share in the second quarter of 2009, while earnings reflected an USD 0.08 per share impact from unfavourable currency translation. Higher price and product mix added 1.3% to sales compared to the prior year, exceeding cost inflation. Global shipments were down 1.8% from the prior year. Second-quarter shipments, excluding volume loss tied to North American contracts renegotiated at the end of 2009. The effect of overall lower shipments on earnings was fully offset by favourable regional sales mix due to strong growth of higher margin business in South America. Cost inflation totalled USD 18 million, while an increase in other manufacturing costs was more than offset by incremental footprint realignment savings and improved capacity. O-I also announced a joint venture to significantly expand its presence in Southeast Asia and China which was, along with the repayment of USD 450 million 8.25% notes and the repurchase of 1.6 million shares of company stock, funded by issuing USD 690 million of 3.0% exchangeable notes.