Design

Owens-Illinois (O-I), the US-based glass packaging manufacturer, is expecting a "challenging" 2008, due to rising energy and raw material costs, despite improved earnings for the first quarter of the year.

O-I recorded net earnings of $178m (£89.5m) for the three months to 31 March, compared to $53.2m in the same period last year.

Chairman and chief executive Al Stroucken said the results reflected a "robust process" for maximising efficiencies and a strategy that favoured price over volume.

O-I recorded net sales of $1.9bn for the three months to 31 March, up from $1.6bn in 2007.

Stroucken added that the firm would continue to look for expansion opportunities and work with customers to improve packaging to "help distinguish brands in the marketplace".