O-I turned a profit in 2009, and is in great shape financially to face the future, but the company faces an uncertain 2009, according to its Chief Executive. "We find ourselves in a contradictory situation reporting record results in the midst of an economic recession, and yet facing so many unknowns that we are reluctant to predict what will happen next month, let alone for the whole of the year," Al Stroucken told analysts during a conference call. The company said it lost US$230M in the fourth quarter of 2008, but had a US$258M profit for the year. Its revenue dropped 13% for the quarter and climbed 4% for the year to US$7.9BN. The company said its drop in earnings was due to temporary manufacturing line shutdowns needed to offset falling demand and rising inventory levels. The company experienced a 10% quarterly decline in sales volumes. In N America, the firm's beer bottle sales could be affected by the recession, as drinkers during the recession tend to favour cheaper beers packaged in cans. The company plans to raise its prices, increase its marketing and productivity and "defend market share while still growing our business," the CEO said. He declined to provide specifics on price increases. It is unclear though whether OI's bottle customers will accept the price increase or look for alternative packaging.
