O-I REPORTS SECOND QUARTER 2014 RESULTS; Positive volume trends in Europe and the Americas

Owens-Illinois, Inc. (NYSE: OI) reported financial results for the second quarter ending June 30, 2014.

Highlights
Second quarter 2014 earnings from continuing operations attributable to the Company were $0.80 per share (diluted), compared with $0.81 per share in the same period of 2013.[1]

Most regions generated year-over-year volume growth for the quarter. The Company reported strong gains in South America, modest growth in Europe and North America, and lower volume in Asia Pacific.

Higher segment operating profit in South America was offset by modest declines in the other regions. Strong volume growth in Brazil and a promising increase in demand in the Andean countries boosted profitability in South America.
Net interest expense was consistent with prior year.

Commenting on the Company´s second quarter results, Chairman and Chief Executive Officer Al Stroucken said, "Our performance in the second quarter was in line with our expectations. We are pleased with the positive volume growth we achieved in three of our four regions. Global volumes were up - excluding footprint reductions undertaken in China earlier in the year. Higher profitability in South America, likely a benefit from the World Cup, was modestly overshadowed by supply chain challenges in North America. And in Europe, production downtime associated with engineering activities related to our asset optimization program, as well as furnace rebuilds, mitigated the benefits of higher sales volumes."

Operational highlights
Net sales in the second quarter of 2014 were $1.8 billion, up 1 percent from the prior year second quarter. Price was up 1 percent on a global basis, as a slight decline in Europe was offset by broad-based price gains in the Americas. Currency had a positive impact on the top line, with a stronger Euro more than offsetting a weaker Brazilian real and Australian dollar.

Sales volume, in terms of tonnes shipped, increased in three of the Company´s four regions, but global volume decreased 1 percent year-over-year due to a strong contraction in Asia Pacific. Europe volume increased 2 percent, driven by a strong performance in beer, as well as gains in wine and food. North America volume grew 1 percent, with increases in beer and non-alcoholic beverages, such as juices and iced coffees. South America volume increased 8 percent, buoyed by strong demand in Brazil and volume gains in the Andean countries. Volume in Asia Pac