O-I provides first quarter results update

First quarter 2012 results for Owens-Illinois, Inc. (O-I) are expected to exceed prior year first quarter 2011 earnings from continuing operations of USD 0.50 per share (diluted) by more than 35%. The company will provide further details on its first quarter performance and business outlook on its quarterly earnings conference call scheduled for 26 April 2012.

Owens-Illinois, Inc. (O-I) announced that first quarter 2012 results, based on preliminary indications, should exceed prior year first quarter 2011 earnings from continuing operations of USD 0.50 per share (diluted) by more than 35%. The higher first quarter 2012 results were primarily driven by good manufacturing performance as the company’s facilities operated at greater than planned production rates. The company increased its levels of finished goods inventory during the first quarter to support the upcoming seasonal sales volume trends, especially in North America and Europe, and to avoid the supply chain inefficiencies experienced last year during the second quarter. The results also partially benefited from 2012 pricing actions to offset un-recovered prior year inflation and anticipated 2012 inflation. Cost reduction activities initiated in the second half of 2011, as well as lower than expected costs in the first quarter of 2012 for the successful SAP deployment in North America, also benefited results.
Commenting on preliminary first quarter 2012 results and the company’s business outlook, Chairman and CEO Al Stroucken said, “We are seeing generally good initial results from our price increases and operational efficiencies. We are encouraged by the first quarter performance, yet conflicting customer demand patterns, especially in Europe where uncertainty regarding financial markets persists, continue to impact our visibility for the remainder of the year. Accordingly, we will actively manage our production levels for significant changes in sales demand patterns, and such actions could considerably influence future financial results.”
The company will provide further details on its first quarter performance and business outlook on its quarterly earnings conference call scheduled for 26 April 2012.