10.30.19
Owens-Illinois, Inc. reported financial results for the third quarter ended Sept. 30, 2019.
“O-I’s third quarter results were in-line with our most recent guidance and reflect the benefit of in-creased selling prices and our recent acquisition of Nueva Fanal which partially offset foreign currency pressures and lower than expected sales volumes,” said CEO Andres Lopez. “Consistent with our focus on strengthening O-I’s balance sheet, we also reduced the company’s debt levels supported by free cash flow during the quarter.
“In the face of softer than expected demand, we are accelerating our actions to curtail capacity and reduce costs,” he added. “Separately, we are expanding our strategic portfolio review to include the eval-uation of our Australia and New Zealand business. While our outlook for the year remains muted as reflected in our revised guidance, we anticipate these actions will enable us to stabilize the business and resume our long-term trend of improved performance and cash flow as well as further debt reduction in 2020.”
Net sales were $1.67 billion, down slightly compared to the prior year third quarter. Loss from continuing operations before income taxes was $536 million, compared to earnings of $168 million in the third quarter of 2018. Segment operating profit was $205 million, compared with $255 million in the third quarter of 2018.
The company reduced its total debt by $443 million (net debt by $345 million) in the third quarter to $5.6 billion supported by free cash flow during the period.
“O-I’s third quarter results were in-line with our most recent guidance and reflect the benefit of in-creased selling prices and our recent acquisition of Nueva Fanal which partially offset foreign currency pressures and lower than expected sales volumes,” said CEO Andres Lopez. “Consistent with our focus on strengthening O-I’s balance sheet, we also reduced the company’s debt levels supported by free cash flow during the quarter.
“In the face of softer than expected demand, we are accelerating our actions to curtail capacity and reduce costs,” he added. “Separately, we are expanding our strategic portfolio review to include the eval-uation of our Australia and New Zealand business. While our outlook for the year remains muted as reflected in our revised guidance, we anticipate these actions will enable us to stabilize the business and resume our long-term trend of improved performance and cash flow as well as further debt reduction in 2020.”
Net sales were $1.67 billion, down slightly compared to the prior year third quarter. Loss from continuing operations before income taxes was $536 million, compared to earnings of $168 million in the third quarter of 2018. Segment operating profit was $205 million, compared with $255 million in the third quarter of 2018.
The company reduced its total debt by $443 million (net debt by $345 million) in the third quarter to $5.6 billion supported by free cash flow during the period.