Net sales were $1.8 billion, which was 1% higher than prior year second quarter. Higher prices, reflecting cost inflation and sales mix, and the impact of the stronger euro were partially offset by modestly lower shipments and weakening currencies in Latin America.
“O-I’s second-quarter results exceed management’s guidance, again demonstrating resilience in the face of well-known headwinds arising during the quarter, such as transportation strikes in Brazil and the stronger US dollar,” said Andres Lopez, CEO. “Global shipments were solid, taking into account the strong performance of our joint venture with CBI. We continue to benefit from favorable pricing dynamics and a concerted effort to improve the sales mix. And, Asia Pacific is nearing successful completion of its asset advancement project. Building on a secure foundation, we expect continued growth in sales, margins, earnings and cash flow in 2019 and beyond.”
For the second quarter, earnings from continuing operations were $0.31 per share (diluted), compared with $0.85 per share in 2017. The decline was primarily driven by higher charges related to restructuring activities.
Earnings from continuing operations before income taxes were $78 million for the second quarter compared with $152 million for the same period in 2017. This decrease is largely related to the restructuring charges.
Global sales shipments were down 1% compared with prior year. The decline is largely attributed to the impact of external transportation strikes in Brazil and a raw material batch disruption in Mexico. Both incidents, now resolved, limited the product available for sale in the quarter. The Company’s joint venture with Constellation Brands, Inc., continues to perform well, reporting higher sales compared with prior year.
The company continues to expect cash provided by continuing operating activities for 2018 to be approximately $800 million and adjusted free cash flow to be approximately $400 million, with downside pressure from currency.