O-I Glass reported strong third quarter results for 2022 as higher average selling prices boosted sales by $221 million.

O-I reported its financial results for the third quarter which ended September 30, 2022.

Andres Lopez, O-I Glass CEO, said: “O-I reported strong third quarter performance which exceeded guidance driven by solid net price realisation as we began implementation of our third price increase this year in Europe.

“Our glass shipments increased slightly compared to the prior year period, as expected. Elevated asset project activity contributed to higher operating costs, as we commission much needed new capacity to support future growth.

“Higher costs were partially offset by solid operating performance and the benefits from O-I’s ongoing Margin Expansion initiatives.”

Net sales were $1.7 billion in the third quarter of 2022, up from $1.6 billion in the prior year quarter.

Higher average selling prices boosted sales by $221 million.

Shipments (in tons) improved nearly 1% but a slightly less favourable mix resulted in a $4 million decrease to net sales.

Other sales declined $3 million driven by lower machine part sales. Unfavourable foreign currency translation and divestitures reduced sales by $110 million and $20 million, respectively.

Segment operating profit was $266 million in the third quarter of 2022 compared to $243 million in the prior year quarter.

Mr Lopez said the company would continue to deliver on key transformation initiatives.

He said: “Following Paddock’s fair and final resolution of its legacy asbestos liabilities and emergence from Chapter 11 protection in July, O-I completed its $1.5 billion portfolio optimisation programme in August with proceeds used to reduce debt and pre-fund upcoming expansion initiatives.”

O-I expects operating costs will be higher in the fourth quarter of 2022, due to incremental expense for expansion project activity.

However, this should be partially offset by benefits from the company’s ongoing Margin Expansion initiatives.