O-I - Profits Warning

O-I has issued a warning that its profits in the current financial year will be at the lower end of expectations. The company blames a quickening pace of inflation in prices for energy during the third quarter. It says costs of energy, raw materials and packing materials have all been rising steadily during the past few quarters. Also, O-I has temporarily cut capacity to control inventory in Europe; it has suffered manufacturing inefficiencies due to two furnace start-ups in N America following rebuild stoppages, and it has suffered higher costs related to integration initiatives in Europe following its acquisition of BSN Glasspack. As a result of the expected lower profits, O-I has also warned that it will repay less debt that inspected.