For the third quarter, earnings from continuing operations were $0.77 per share (diluted), up 13% compared with $0.68 per share in 2016, primarily driven by improved segment operating profit in Europe and Latin America, and lower interest and tax expense.
Net sales were $1.8 billion, an increase of almost 5% compared to the prior year third quarter, primarily due to favorable currency translation. Price increased 1% on a global basis, while shipments were on par with the prior year.
Earnings from continuing operations before income taxes were $172 million, an increase of 12% compared with the same period in 2016.
Segment operating profit of reportable segments for the third quarter of 2017 was $260 million, an increase of 10% compared with prior year. Notable gains were reported in Europe and Latin America, which more than compensated for external weakness in North America.
The company agreed to expand its 50-50 joint venture with Constellation Brands. The joint venture operates a glass container production plant in Nava, Mexico that provides bottles exclusively for Constellation’s adjacent brewery. The newly-expanded relationship provides for the addition of a fifth furnace at the plant and extends the term of the joint venture agreement 10 years, to 2034.
“In the quarter, O-I demonstrated its resiliency in the face of well-known, challenging external conditions in the Americas by delivering a seventh consecutive quarter of earnings results in line with, or exceeding, our guidance,” said CEO Andres Lopez, CEO. “We are excited about the growth that will be enabled through our continued and expanded relationship with Constellation. This investment will allow both companies to realize additional attractive opportunities in Mexican beer exports to the U.S, leveraging the success at the joint venture’s highly-efficient factory in Nava, while bolstering O-I’s relationship with a key strategic customer.”
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