Europe still tough for O-I

Owens-Illinois (O-I) announced that full year net sales were $7bn in 2012, down from $7.4bn in 2011, as unfavorable currency translation and a decline in volume were partially offset by higher prices.

Volume declined 5% in terms of tonnes shipped compared with the prior year, driven by Europe, where shipments slowed due to persistently sluggish macroeconomic conditions, and stronger than anticipated share shift to smaller competitors in response to O-I's pricing strategy.

Segment operating profit increased by $35m versus the prior year, buoyed by improved manufacturing performance in North America and restructuring benefits in Asia Pacific. The decline in segment operating profit in Europe was largely due to the impact of lower sales and production volume and foreign currency headwinds.

Asbestos-related cash payments in 2012 amounted to $165m, down $5m from 2011 and lawsuits and claims filed in 2012 continued to decline compared to the prior year. The Company conducted its annual comprehensive review of asbestos-related liabilities in Q4 2012 and recorded a charge of $155m.