Third Quarter 2017 Summary: • Reported sales increased 6% over the prior year driven by 3% core growth and a 3% favorable impact from exchange rates • Each business segment achieved core sales growth • Lower custom tooling sales negatively impacted the sales growth by 2% • Reported net income (9% of net sales) increased to $54 million (+1%) • EBITDA (19% of net sales) decreased to $118 million (-4%) • Profit margins were negatively impacted by operational challenges at our decorative facility in Europe, higher professional fees, raw material cost increases and certain currency transaction losses. Click Read More below for additional information.
O-I Glass, Inc. (NYSE: OI) announced it completed the sale of its Australia and New Zealand (ANZ) business unit to Visy Industries. Gross proceeds approximated AUD $947 million including a related sale-leaseback agreement which approximated AUD $214 million. Based on recent currency exchange rates, gross proceeds represented approximately USD $677 million. Approximately 95 percent of proceeds are being received at time of closing and the remaining balance will be paid within 12 months of closing without conditions precedent. Net proceeds will be principally used to reduce debt.
O-I ANZ is the largest manufacturer of glass bottles and containers in Australia and New Zealand and the business generated sales of approximately AUD $754 million and EBITDA of approximately AUD $124 million in 2019.
This divestiture substantially completes an in-depth strategic review of the company’s global business portfolio and operating structure.