US-based container glass manufacturer O-I Glass has recorded a pre-tax loss for the first quarter of this year, with adverse weather and the Covid-19 pandemic having affected its business.
The company posted a loss of $0.62 for each share, compared to a profit of $0.32 for each share (diluted) in the first quarter of last year.
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O-I Glass’s pre-tax loss for the quarter amounts to $65m. In the same period a year earlier, it reported earnings before income taxes of $81m.
Both comparable periods include items that the company’s management considers not to be representative of ongoing operations.
The company’s first-quarter adjusted earnings were $0.35 per share, excluding certain items.
O-I Glass’s net sales in the quarter were $1.5bn, compared to $1.6bn in the same quarter of the previous year. Its net sales increased by $66m on a year-on-year basis when divestitures are adjusted.
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By GlobalDataThe company reported a segment operating profit of $175m in the quarter. This is a slight decrease from the $176m reported in the first quarter of last year.
O-I Glass CEO Andres Lopez said: “O-I’s first-quarter business performance was strong and consistent with our original guidance. This was accomplished despite the significant impact of severe weather that disrupted operations in Texas, Oklahoma and Mexico.
“Aside from this temporary event, business trends were favourable. Excluding the effect of recent divestitures, sales volume was consistent with last year despite the impact of severe weather and Covid-19 related restrictions. Favourable trends accelerated as the quarter progressed.
“Continued strong operating performance and the company’s margin enhancement initiatives offset the impact of severe weather. First-quarter cash flow trends were favourable considering typical business seasonality, reflecting our continued focus on working capital management.”
Last month, O-I Glass announced a $75m investment to expand one of its facilities in Colombia.
The company, which specialises in manufacturing glass bottles and jars, will add another furnace to its Zipaquirá facility in the Department of Cundinamarca.
