O-I has reported a loss in Q1/2011 even though its sales have increased. It reported 27 April that its profit for the Q1 was $73M, or 44 cents a share, down 11% from the same period a year ago, when it had a profit of $82m (48 cents a share). O-I said that profits were negatively affected by flooding that occurred earlier in the year in Australia - by $0.04 per share. In addition, it also said that it incurred $49M of cost inflation driven by higher raw material, energy prices and $9M of costs related to flooding in Australia. O-I reported sales of $1.7BN, up 11% from a year ago ($1.55BN:2010). It said the increase stemmed primarily from higher sales volume and favourable foreign currency translation effects. Chairman & CE Al Stroucken said: "Our shipments were up from prior year levels across all regions & end-use categories. Higher volumes reflected last years acquisitions in South America & China as well as improving economic conditions. Stronger volumes boosted our production levels & capacity utilization rates. However, the benefit of greater shipments was offset by higher costs including elevated cost inflation & interest expense on additional borrowings to fund recent & future acquisitions. We are also investing in our sales & marketing capabilities to drive future profitable growth."
