Owens-Illinois reported an annual profit in 2012, even as revenues fell by nearly 5% due to continuing weakness in Europe.

Its full year 2012 operating profit increased by $35 million from 2011 thanks to improved manufacturing performance in North America and restructuring benefits in Asia Pacific.

The decline in segment operating profit in Europe was largely due to the impact of lower sales and production volume and foreign currency headwinds.

CEO Al Stroucken said: “Our improved segment operating profit over 2011 reflects the success of our pricing strategy to recover margins, as well as significant improvements to the bottom line performance of our North American and Asia Pacific operations.”

He added that to improve the company’s competitiveness in the challenging European market, it had launched a programme aimed at more effectively meeting customer requirements and improving profitability.

Its Q4 volume, in terms of tonnes shipped, decreased by 7% year-over-year. The decline in volume was most pronounced in Europe, due to lower end-use demand. South America continued to report strong growth in volume.

It expects better results in 2013 due to improved operating results as cost efficiency and restructuring programmes take hold, particularly in H2 2013.