Bottle Maker Owens-Illinois Names New CEO
October 20 2015 - 6:40PM
Dow Jones News
Owens-Illinois Inc., one of the world's largest glass-bottle
makers, has promoted its chief operating officer to chief executive
as it tries to revamp sales amid falling global demand.
Andres Lopez, who led negotiations that resulted in the
company's $2.15 billion acquisition of Vitro S.A.B. de C.V.'s food
and beverage glass-container business, is set to succeed Chief
Executive Al Stroucken on Jan. 1. The company named him as COO in
December.
Mr. Stroucken, who took the company's reins in 2006, led its
exit of the plastic business and global expansion focusing on glass
bottles.
Under Mr. Stroucken, Owens-Illinois cut costs, shed noncore
businesses and lodged itself into China's fast-growing market. But
global demand for glass bottles crashed, as mass-market brewers put
more of their beer in cans, Europe's economy sputtered, and China's
growth slowed.
Mr. Stroucken will stay on as executive chairman through May,
when the Perrysburg, Ohio, company will hold its annual shareholder
meeting. In a regulatory filing, Owens-Illinois said Mr.
Stroucken's pay will remain unchanged other than to prorate annual
compensation to reflect that his contract is slated to end on June
30. In 2014, Mr. Stroucken's total compensation was valued at $9
million, including a base salary of $1.1 million.
Meanwhile, Mr. Lopez's base salary was set at $850,000. The
53-year-old is also eligible for bonus pay and other perks,
including personal use of the company's aircraft for up to 50 hours
a year.
For the first six months of the year, the most recent results
available, the company reported profit from continuing operations
fell to $113 million on $2.96 billion in net sales, compared with
$236 million in profit and $3.44 billion in sales in the
year-earlier period.
Write to Maria Armental at maria.armental@wsj.com
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(END) Dow Jones Newswires
October 20, 2015 18:25 ET (22:25 GMT)
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