Investing.com -- Owens-Illinois Inc (N:OI), the world's largest glass container manufacturer, announced on Tuesday that it is promoting Chief Operating Officer Andres Lopez to company CEO, replacing current chairman Al Stroucken.
The move, which was affirmed by the company's Board of Directors at its October meeting, will be effective on January 1. Stroucken will remain as the company's Executive Chairman of the Board until Owens-Illinois' annual shareholder meeting in May, 2016.
Lopez was instrumental in helping Owens-Illinois complete a $2.15 billion acquisition of Vitro's food and beverage business in May. With the completion of the deal, Owens-Illinois gained control of five Vitro bottling plants in Mexico, along with an additional one in Bolivia. At the time, Owens-Illinois estimated the deal will help the company boost annual revenue by $945 million and annual EBITDA by $278 million. Owens-Illinois is also one of the largest glass bottle makers in the world.
While Owens-Illinois narrowly beat analysts' forecasts in the second quarter, it still saw its adjusted earnings per share slump by 25% for the three month period that ended in June. The sharp declines came amid currency headwinds which impacted sales in Europe and Asia, as well as a weak period in Brazil. Demand among brewers has also waned, as beer companies have become more reliant on cans.
"Over the last year Andres and I have worked closely together to transition all responsibilities for the company," Stroucken said in a statement. "The Board is confident that Andres' passion and his strategic vision for the company will propel O-I successfully into the future."
Lopez spent more than two decades with Owens-Illinois before being promoted to president of the company's South America division in 2009. Last year, the company named Lopez president of O-I America, adding operations in North America to his list of responsibilities. He was named the company's COO in February.
Shares in Owens-Illinois gained 0.18 or 0.77% to 23.57.