Owens-Illinois (NYSE:OI), producer of glass containers for beer and other beverages, reported worse-than expected first quarter earnings Wednesday, causing shares to fluctuate throughout the day.
Net income was $141.1 million, or 85 cents a share, compared with $149.3 million, or 88 cents a share, in the same quarter last year, and just below average analyst estimates of 91 cents, according to a Thompson Reuters poll.
Revenue for the Toledo, Ohio-based company was $1.7 billion, down from $1.8 billion a year-earlier and falling short of the Street’s view of $1.82 billion. The company attributed impeded sales to unfavorable foreign currency translations. Higher prices and product mix added 1.3% to sales, though global shipments were down 1.8%
The company announced a joint venture to expand its presence in Southeast Asia and China. The deal will allow it to take over a plant in China.
Owens-Illinois CEO Al Stroucken said demand was strong in South America and China because of an accelerated economic recovery in those regions.
“At the same time, the pace of improvement was inconsistent across North America and Europe as beer demand remained sluggish,” he said.