O-I’s third quarter results show an overall decline in volumes of around 3%, with falling sales of major beer brands affecting sales in North America.
The 3% volumes decline comes in spite of double digit growth in South America.
South America and Europe continued to generate year-on-year gains in operating profit.
Commenting on these results, Chairman and CEO Al Stroucken said, "South America performed well in the quarter on higher sales and better productivity, leading to a 45% increase in profitability year-over-year.
“Europe also turned in strong results, despite a decline in shipments.”
North America and Asia Pacific reported lower operating profit, primarily due to lower sales and production volume:
“In Asia Pacific, we adjusted our capacity in Australia to better match reduced levels of wine exports.
“North America was clearly impacted by the continued volume decline of major domestic beer brands”.
In relation to this, O-I has recently entered into a joint venture and long-term supply agreement with Constellation Brands to supply glass for their growing beer business.