Closure of Ardagh glass plants costs company $166 million

Ardagh Glass Packaging North America had exceptional costs of $166 million related to the closure of two manufacturing facilities.

In its half-year financial report for 2024, it outlined one-off, exceptional costs related to its Houston, Texas production facility and the indefinite curtailment of the Seattle, Washington production site.

This included $131 million related to the impairment of property, plant and equipment and $35 million of restructuring and other costs primarily in connection with these activities.

The same division also reported $3 million of costs related to fire and storm damage in the first half of the year.

In the report Ardagh Glass Packaging saw revenue decline in Europe and Africa and in its North American divisions in the first half of the year.

European and African revenue decreased by $117 million, or 8%, to $1,340 million in the six months ended June 30, 2024, compared with $1,457 million in the same period last year. 

The decrease was principally due to the pass through of lower input costs to customers, notably energy, partly offset by favourable volume/mix effects. 

In North America revenue decreased by $78 million, or 9%, to $781 million in the six months ended June 30, 2024, compared with $859 million in the same period last year. 

The decrease principally reflected lower volume/mix, partly offset by the pass through of higher input costs.

In the same note it said Demand for beverage products within its glass packaging business is strongest during the summer and during periods of warm weather, as well as during the period leading up to holidays in December.

02.08.2024, Ardagh Glass Packaging

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