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Owens-Illinois posts higher 3Q profit

US glassmaker Owens-Illinois Inc. said at the end of October that its profit was up almost 10% in the third quarter, as it saw demand for wine, food and spirits increase.
Looking ahead, Chairman and …

US glassmaker Owens-Illinois Inc. said at the end of October that its profit was up almost 10% in the third quarter, as it saw demand for wine, food and spirits increase. Looking ahead, Chairman and CEO Al Stroucken said a recent Venezuelan government decree for the expropriation of Owens-Illinois“ operations in the Latin American nation – which is less than 5% of the company“s global segment operating profit – would probably affect the company“s fourth-quarter results. The company reported net income of USD 138.7 million, or 84 cents a share, for the quarter ended 30 September, compared to USD 126.7 million, or 74 cents a share, in the same period of 2009. According to the company, excluding charges related to acquisition costs, write-downs on inventory and other special items, adjusted earnings amounted to 90 cents a share, versus a profit of 95 cents a share, in the same period of last year. Revenue dropped to USD 1.74 billion from USD 1.87 billion, mainly because of the impact of unfavourable currency exchange. Owens-Illinois said global shipments decreased 2.4% during the quarter compared to the same period in 2009. The company also said that glass shipments for beer in emerging markets, and wine and spirits on a global basis, had increased between 5% and 13% in the first nine months of the year. At the same time, inflation pushed manufacturing and delivery costs higher during the quarter. Our recent expansion in these markets will further benefit earnings in the future. However, shipments in the mature markets will likely remain inconsistent until beer demand recovers, Stroucken said, adding that he expects prices will remain stable this year and volume growth in emerging markets will continue to be strong.

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