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The company reported net income for the third quarter of $126.7 million or $0.74 per share, compared to $78.6 million or $0.46 per share for the year-ago quarter.
Excluding items, adjusted net income for the third quarter was $162.7 million or $0.95 per share, compared to $153.7 million or $0.90 per share in the prior year quarter. This is the first improvement in quarterly earnings since the recession began to impact the company's business in 2008 third quarter.
On average, 12 analysts polled by Thomson Reuters expected the company to earn $0.93 per share for the third quarter. Analysts' estimates typically exclude special items.
Owens-Illinois, which makes glass containers for beer, ready-to-drink low alcohol refreshers, spirits, wine, food, tea, juice, and pharmaceuticals, said net sales for the third quarter fell 7% to $1.87 billion from $2.01 billion in the same quarter last year, as improved price and mix were more than offset by lower shipments and unfavorable foreign currency translation. Eight analysts had a consensus revenue estimate of $1.87 billion for the third quarter.
Manufacturing, shipping and delivery expenses for the quarter dropped 11% to $1.43 billion from $1.60 billion a year earlier.
The company's segment operating profit for the third quarter rose to $316.6 million from $287.6 million in the third quarter of last year.
Third quarter glass container shipments, in tonnes, declined 7% from last year. Excluding South America, shipments were down 5%.
The company continued to implement its strategic footprint alignment initiative, focused on optimizing global assets. O-I has permanently ceased production or closed a total of 18 furnaces since the program's inception in 2007, including three furnaces during the third quarter. As a result, the company reduced fixed costs by $34 million in the quarter.
For the first nine months, the company reported net income of $321.1 million or $1.89 per share, compared to $480.0 million or $2.86 per share for the same period last year.
Adjusted net earnings for the nine-month period was $415.2 million or $2.44 per share, compared to $569.1 million or $3.34 per share in the prior year period.
Net sales for the nine-month period fell to $5.20 billion from $6.18 billion in the corresponding year-ago period.
Looking forward to the fourth quarter, the company's Chief Executive Officer Al Stroucken said typical seasonal volume trends and temporary production curtailments to reduce inventories will likely lead to lower sequential earnings.
Owens-Illinois shares, which have traded in a range of $9.53 to $39.56 over the past year, closed Wednesday's regular trading session at $33.51, down $1.70 or 4.83%. The stock is currently losing $3.01 or 8.98% in after hours trading.
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