Europe impacts O-I performance

US manufacturer O-I was hit by a European slump in the first quarter of 2013.Its operating profit dropped to $226 million, down from $260 million in the prior year.It said higher operating profits in South America and Asia Pacific were more than offset by lower results in Europe. It said European operating profit was impacted by lower demand and its efforts to normalise production levels over the course of 2013.Chief Executive Al Stroucken said for the current quarter, the company expects continued volume growth in its emerging regions and stable market conditions in North America.On Europe he said: “Our initiative to mitigate production volatility over the course of the year was a planned headwind in the first quarter, but will benefit us in the second half of the year.”Net sales in Q1 2013 were $1.64 billion, down from $1.74 billion in the prior year first quarter. Volume, in terms of tonnes shipped, decreased by 5% y-o-y.It said the decline in volume was most pronounced in Europe, due to difficult macroeconomic conditions and the absence of major sporting events that occurred in the prior year.South America reported volume growth, driven by food packaging. Sales prices globally were up 2%, with successful price initiatives reported in all regions. 06.05.2013, O-I