Owens-Illinois reports record profit

The company reported record profit of $232m (£117m), up 65%, in the second quarter to 30 June. Sales increased 11% to $2.2bn.

The rise was driven mainly by improved prices and the sales mix in all regions and favourable exchange rates. However, the improvement was partially offset by higher input costs for energy, raw materials and freight plus reduced sales and production volumes.

The company’s sales in Europe increased by 16% to $1bn as operating profit rose 60% to $196m.

O-I chief executive Al Stroucken said rising input costs and a slower economy would make the second half of 2008 tougher.

“We will continue to be aggressive with our pricing and productivity improvement initiatives.”

Earlier this week the company announced 430 job losses at its Toronto plant after a global facility review of underused assets identified the opportunity to shift production to its other plants in Canada.

O-I will also create 35 jobs following an investment of NZ $80m (£29.7m) in expanding its plant in Auckland with an additional furnace and two glass forming machines.

The firm has two UK plants in Harlow, Essex, and Alloa, central Scotland.

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