Owens-Illinois, expects 2008 to be a record year, in spite of the tough operating environment for all packaging manufacturers. The company reported record profit of $232M (£117M), up 65%, in Q2 to 30 June. Sales increased 11%. The rise was driven mainly by improved prices and the sales mix in all regions and favourable exchange rates. However, the improvement was partially offset by higher input costs for energy, raw materials and freight plus reduced sales and production volumes. The company's sales in Europe increased by 16% to $1bn as operating profit rose 60% to $196m. O-I CE Al Stroucken said rising input costs and a slower economy would make the second half of 2008 tougher. "We will continue to be aggressive with our pricing and productivity improvement initiatives." Earlier that week the company announced 430 job losses at its Toronto plant.
