Sales fell but profits were on the rise for both Owens Corning and Owens-Illinois, despite the difficult global economic situation for the industry.
Building materials and fiber glass manufacturer Ow…
Sales fell but profits were on the rise for both Owens Corning and Owens-Illinois, despite the difficult global economic situation for the industry. Building materials and fiber glass manufacturer Owens Corning recorded a profit of USD 80 million for the third quarter on sales of USD 1.3 billion, compared with a loss of USD 807 million on sales of USD 1.6 billion for the same period in 2008. Glass bottle manufacturer Owens-Illinois Inc. said it made more money selling fewer glass bottles to brewers and other customers in the third quarter, with a profit of USD 127 million on sales of USD 1.9 billion, compared with a profit of USD 79 million on sales of USD 2 billion in 2008. Chief executive of OC, Mike Thaman said in a statement: “The aggressive actions we“ve taken to reduce our costs and inventory are paying off. We sustained strong financial performance and generated significant cash flow driven by our outstanding results in roofing.” OC reported 63 cents a share profit, up from the loss of USD 6.35 a share in 2008, with that loss caused by an accounting charge related to income taxes and prior losses. Lower sales across most product lines were compensated by higher selling prices for roofing shingles. The firm“s fiber glass unit returned to profitable, but demand is steadily increasing after dropping 45% in December 2008 without recovering to levels seen in the first nine months of 2008,” according to company officials. O-I“s reported a quarterly profit on the increase at 74 cents a share, up 46 cents compared to 2008. The 7% drop in bottles sold was mostly offset with higher prices and a sales mix that included more high-end bottles. According to Al Stroucken, chief executive O-I, “I am pleased with our third-quarter results amid challenging economic conditions, underscoring our ability to adapt to a rapidly changing marketplace. We posted improved year-over-year earnings for the first time since the recession began to impact our business in the third quarter of last year.”