Severe weather in Mexico and Southern USA impacted O-I’s first quarter business performance.
The world’s largest glass bottle manufacturer reported net sales of $1.5 billion in the first quarter of 2021 compared to $1.6 billion in the prior year quarter.
Andres Lopez, CEO, said: “O-I’s first quarter business performance was strong and consistent with our original guidance.
"This was accomplished despite the significant impact of severe weather that disrupted operations in Texas, Oklahoma and Mexico.
"Aside from this temporary event, business trends were favourable. Excluding the effect of recent divestitures, sales volume was consistent with last year despite the impact of severe weather and COVID-19 related restrictions.
"Favourable trends accelerated as the quarter progressed. Furthermore, continued strong operating performance and the company’s margin enhancement initiatives offset the impact of severe weather.
"First quarter cash flow trends were favourable considering typical business seasonality reflecting our continued focus on working capital management."
He added that the first full-scale commercial MAGMA production line is now operational and the team was conducting the necessary tests to validate the technology in Holzminden, Germany.
The new line is already generating glass bottles and further testing will be conducted over the next few months. It is expected to be validated by mid-year.