Wine shipments to Australia have dropped this year, but Asia Pacific glass bottle volumes will benefit from a “major” new beer contract in Australia, according to glass manufacturer Owens-Illinois (O-I).
O-I's volume in Asia Pacific has contracted three per cent in the second quarter, partly due to the waning impact of plant shutdowns in China in 2014. While wine demand trends suggest sequential stabilisation in Australia, shipments to the country were lower than last year.
Chairman Al Stroucken did not specify which company was behind the Australian beer contract.
O-I's second-quarter financial results show “favourable results” from non-operational items, which offset some weakness in Brazil as a result of lower beer shipments.
In the Asia Pacific, segment operating profits were on par with last year's second quarter.
Profit in Europe was adversely impacted by planned production downtime and lower selling prices.
Stroucken said he was pleased with the strong results in the Asia Pacific.
“Overall, our earnings per share benefited from the refinancing of $300 million in high-coupon bonds and the completion of a $100 million accelerated share buyback program," he said.
Net sales in the second quarter of 2015 were $1.5 billion, down $254 million from the prior year's second quarter. Adverse currency translation caused by the strength of the US dollar accounted for $240 million of the decline in net sales.
OI is a partner for many worldwide food and beverage brands.
