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Owens-Illinois (OI) Awarded Multi-Year Contract by Reed's

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Owens-Illinois, Inc. (OI - Free Report) recently secured a multi-year contract from Reed’s, Inc. to supply glass containers. Per the contract, Owens-Illinois will provide bottles in order to expand the reach of Reed’s all-natural craft beverages.

Based in Los Angeles, CA, Reed's develops, manufactures and markets top-selling sodas in natural foods markets. The latest deal with Owens-Illinois will simplify Reed's supply chain and drive significant cost savings. The contract will also help deliver improved package quality with sustainable, high-quality, brand-building glass bottles, and lower Reed's working capital commitment to glass inventory.

In addition to the above, the contract will assist Owens-Illinois to cope with contraction in the beer market and negative impact of hurricanes in North America sales in the fourth quarter. The largest glass-container maker has been battling the persistent decline in mega beer sales by repositioning the enterprise through joint ventures with Constellation Brands and some supply contracts.

For 2017, Owens-Illinois remains on track to achieve all financial targets, including volume growth, margin, adjusted earnings, and cash flow. Its focus on simplifying the organization and boosting productivity will drive long-term growth.

Moreover, the company continues to successfully execute its strategic initiatives in commercial activities, end-to-end supply chain management and working capital reduction.

Share Price Performance

In the past year, Owens-Illinois has outperformed its industry with respect to price performance. The stock has gained around 34.7%, while the industry recorded growth of 23.3% during the same time frame.

Zacks Rank & Key Picks

Owens-Illinois currently carries a Zacks Rank #3 (Hold).

Some better-ranked stocks in the same space are Caterpillar Inc. (CAT - Free Report) and Deere & Company (DE - Free Report) . Both stocks flaunt a Zacks Rank of 1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Caterpillar has a long-term earnings growth rate of 10.3%. Its shares have been up 49.9%, year to date.

Deere has a long-term earnings growth rate of 8.2%. So far this year, its shares have gained 49.1%.

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