第99.1展示文本
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O-I 玻璃報告2024年第三季度業績
2025年及以後，迅速實施《迎接勝利的重點任務》，推動績效提升。
業務 儘管市場疲軟，但銷量保持適度增長
在持續低迷的需求和消費者不確定性之際，更新2024年業務展望
俄亥俄州佩里斯堡（2024年10月29日） 玻璃製品公司O-I（紐交所：OI）今日公佈了截至2024年9月30日的第三季度財務業績。
歸屬於公司的淨收益（損失） 每股盈利（攤薄） |
稅前收益（虧損） 百萬美元 | |||
| 3Q24 | 3Q23 | 3Q24 | 3Q23 | |
| 報告 | ($0.52) | $0.32 | ($57) | $82 |
調整後的收益（虧損） 每股收益（攤薄） |
分部營業利潤 百萬美元 | |||
| 3Q24 | 3Q23 | 3Q24 | 3Q23 | |
| 非 - GAAP | ($0.04) | $0.80 | $144 | $301 |
「與前一年同期強勁表現相比，我們的第三季度業績有所下降。較低的收入主要反映了我們採取果斷行動，在幾個季度需求疲軟後，減少高庫存水平。淨價格也有所下降，部分被適度較高的出貨量所抵消，」O-I Glass的CEO Gordon Hardie說。
我們正在積極實施我們的最初的計劃。 「贏在適合」 首先，我們正在減少庫存，調整網絡結構，以消除無利可圖和多餘的產能，同時執行首階段的SG&A削減計劃。
“我們相信我們2024年的表現並不能反映出業務的潛力。我們決心在2025年及以後改善業績，因爲我們正在推動改善措施。 勝在適者生存 計劃中，Hardie補充道。
2024年第三季度淨銷售額爲17億美元，比去年同期下降6400萬美元，反映銷售量（以噸計）增加了2％，平均銷售價格下降了4％，且不利的外匯匯率轉換。
公司在2024年第三季度報告的稅前虧損爲5700萬美元，相比之下，去年同期的稅前收入爲8200萬美元。這種下降主要是由於較低的分段營業利潤和較高的利息支出引起的。這些不利因素部分被較低的保留公司和其他成本抵消。
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2024年第三季度，分段營業利潤爲14400萬美元，相比於2023年同期的30100萬美元。
| · | 美洲：美洲地區的分段營業利潤爲8800萬美元，低於前一年的11600萬美元。這種下降反映了因淨價格較低而產生的2400萬美元影響，部分抵消了近7%的銷售 成交量（以噸計）的增長，這帶來了1400萬美元的分段營業利潤。由於近幾個季度需求降低，暫時生產削減增加了1700萬美元的營運成本，但有效的營運和成本管理有所緩解。分段營業利潤受不利的外幣匯率轉換影響了100萬美元。 |
| · | 歐洲：歐洲地區的營業利潤爲5600萬美元，低於去年同期的18500萬美元。這一下降反映了低淨售價導致的5500萬美元影響，銷售量（噸）下降了2%，使該部門營業利潤減少了300萬美元，以及由於臨時大規模的生產放緩導致的7400萬美元較高營業成本。然而，有利的外幣翻譯使該部門營業利潤受益了3億美元。 |
第三季度2024年保留的企業和其他成本爲3100萬美元，較前一年同期的6000萬美元下降，這是由於企業支出和管理激勵較低所致。
淨利息支出總計爲8700萬美元，較上一年同期的 7800萬美元有所增加，這是由於較高的利率環境。
O-I在2024年第三季度公司應占淨虧損爲每股0.52美元，而之前年同期公司應占淨收益每股0.32美元（攤薄）。這兩個時期都受到管理層認爲不代表持續經營的項目的影響，主要涉及重組費用。
公司報告，截至2024年第三季度，每股調整虧損0.04美元，與去年同期每股調整收益0.80美元（攤薄）相比。
2024 展望
| FY24 指導 | ||
| 現任 | 先前的 | |
| 銷售 成交量增長（以噸計） | 下跌 ▼ LSD / MSD | 持平 至下跌LSD |
| 調整後 每股收益（EPS） | $0.70 - $0.80 | $1.00 - $1.25 |
| 自由 現金流量（百萬美元） | 130 - 170元的使用 | 50 - 100元的來源 |
由於市場需求低於預期，公司已調整全年指引。管理層現預計2024年調整後的每股收益將在0.70美元至0.80美元之間，低於先前的1.00美元至1.25美元的指引。
這份更新的指引反映出2024年年底需求疲軟，低於預期的裝運量，並且由於收入減少，稅率升高，還需要額外臨時停產以減少庫存水平。爲了加快並重塑公司成本結構，優化庫存和O-I的製造業網絡的行動是必要的，以在2025年及以後實現更好、更可持續的業績。
管理層還將全年自由現金流預期修訂爲使用現金在130美元至17000萬美元之間，這是由於較軟的出貨量導致調整後收益降低和工作量增加
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資本支出，以及3,000萬美元的加速重組成本。預計自由現金流將較去年下降，幷包括較高利息和稅收付款的影響，以及臨時生產削減和"贏在匹配"重組行動，以提升2025年的業績。
指導主要反映公司對銷售和生產量、產品組合和營運資本趨勢的當前看法。 O-I的調整後盈利展望假定2024年10月28日的外匯率，全年調整後有效稅率約爲42至45％，而不是之前的展望33萬億。 35％。 調整後的盈利和自由現金流指引範圍可能無法充分反映宏觀經濟狀況、貨幣匯率、能源和原材料成本、供應鏈干擾和勞動力挑戰等其他因素的不確定性。
適合 贏得倡議
管理層正在實施O-I的第一個階段。 贏下的機會 該公司正在快速取得進展，預計到2027年至少每年節省30000萬美元。公司預計到2025年將至少獲得1,7500萬美元的利益，這代表公司三年節省目標的大部分。
O-I 正在逐步剝離組織、將責任轉移到地區市場、降低中央運營成本，並強調更嚴格的資本紀律。這些舉措應該可以使銷售成本不超過2026年初的5%，每年節省超過20000萬美元。初始的努力進展順利，預計在2025年實現超過一半的目標省錢。
Management is seeking to eliminate unprofitable and redundant capacity to increase network utilization and boost productivity. The company is evaluating the closure of at least 7 percent of capacity by mid-2025 to reduce the fixed base of the network and generate more than $100 million of annualized savings. As part of the 7 percent, O-I has already announced the indefinite or permanent closure of approximately 4 percent of capacity. Management plans to continue to drive greater competitiveness to underpin improved operating performance in 2025 and beyond.
Conference Call Scheduled for October 30, 2024
O-I’s management team will conduct a conference call to discuss the company’s latest results on Wednesday, October 30, 2024, at 8:00 a.m. ET. A live webcast of the conference call, including presentation materials, will be available on the O-I website, www.o-i.com/investors, in the News and Events section. A replay of the call will be available on the website for a year following the event.
Contact: Sasha Sekpeh, 567-336-5128 – O-I Investor Relations
O-I news releases are available on the O-I website at www.o-i.com.
O-I’s fourth quarter and year end 2024 earnings conference call is currently scheduled for Wednesday, February 5, 2025 at 8:00 a.m. ET.
About O-I Glass
At O-I Glass, Inc. (NYSE: OI), we love glass and we’re proud to be one of the leading producers of glass bottles and jars around the globe. Glass is not only beautiful, it’s also pure and completely
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recyclable, making it the most sustainable rigid packaging material. Headquartered in Perrysburg, Ohio (USA), O-I is the preferred partner for many of the world’s leading food and beverage brands. We innovate in line with customers’ needs to create iconic packaging that builds brands around the world. Led by our diverse team of approximately 23,000 people across 68 plants in 19 countries, O-I achieved net sales of $7.1 billion in 2023. Learn more about us: o-i.com / Facebook / Twitter / Instagram / LinkedIn
Non-GAAP Financial Measures
The company uses certain non-GAAP financial measures, which are measures of its historical or future financial performance that are not calculated and presented in accordance with GAAP, within the meaning of applicable SEC rules. Management believes that its presentation and use of certain non-GAAP financial measures, including adjusted earnings, adjusted earnings per share, free cash flow, segment operating profit, segment operating profit margin and adjusted effective tax rate provide relevant and useful supplemental financial information that is widely used by analysts and investors, as well as by management in assessing both consolidated and business unit performance. These non-GAAP measures are reconciled to the most directly comparable GAAP measures and should be considered supplemental in nature and should not be considered in isolation or be construed as being more important than comparable GAAP measures.
Adjusted earnings relates to net earnings attributable to the company, exclusive of items management considers not representative of ongoing operations and other adjustments because such items are not reflective of the company’s principal business activity, which is glass container production. Adjusted earnings are divided by weighted average shares outstanding (diluted) to derive adjusted earnings per share. Segment operating profit relates to earnings before interest expense, net, and before income taxes and is also exclusive of items management considers not representative of ongoing operations as well as certain retained corporate costs and other adjustments. Segment operating profit margin is calculated as segment operating profit divided by segment net sales. Adjusted effective tax rate relates to provision for income taxes, exclusive of items management considers not representative of ongoing operations and other adjustments divided by earnings before income taxes, exclusive of items management considers not representative of ongoing operations and other adjustments. Management uses adjusted earnings, adjusted earnings per share, segment operating profit, segment operating profit margin and adjusted effective tax rate to evaluate its period-over-period operating performance because it believes these provide useful supplemental measures of the results of operations of its principal business activity by excluding items that are not reflective of such operations. The above non-GAAP financial measures may be useful to investors in evaluating the underlying operating performance of the company’s business as these measures eliminate items that are not reflective of its principal business activity.
Further, free cash flow relates to cash provided by operating activities less cash payments for property, plant, and equipment. Management has historically used free cash flow to evaluate its period-over-period cash generation performance because it believes these have provided useful supplemental measures related to its principal business activity. It should not be inferred that the entire free cash flow amount is available for discretionary expenditures, since the company has mandatory debt service requirements and other non-discretionary expenditures that are not deducted from these measures. Management uses non-GAAP information principally for internal reporting, forecasting, budgeting and calculating compensation payments.
The company routinely posts important information on its website – www.o-i.com/investors.
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Forward-Looking Statements
This press release contains “forward-looking” statements related to O-I Glass, Inc. (“O-I Glass” or the “company”) within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended (the “Exchange Act”) and Section 27A of the Securities Act of 1933, as amended. Forward-looking statements reflect the company’s current expectations and projections about future events at the time, and thus involve uncertainty and risk. The words “believe,” “expect,” “anticipate,” “will,” “could,” “would,” “should,” “may,” “plan,” “estimate,” “intend,” “predict,” “potential,” “continue,” and the negatives of these words and other similar expressions generally identify forward-looking statements.
It is possible that the Company’s future financial performance may differ from expectations due to a variety of factors including, but not limited to the following: (1) the general political, economic and competitive conditions in markets and countries where the Company has operations, including uncertainties related to economic and social conditions, trade disputes, disruptions in the supply chain, competitive pricing pressures, inflation or deflation, changes in tax rates and laws, war, civil disturbance or acts of terrorism, natural disasters, public health issues and weather, (2) cost and availability of raw materials, labor, energy and transportation (including impacts related to the current Ukraine-Russia and Israel-Hamas conflicts and disruptions in supply of raw materials caused by transportation delays), (3) competitive pressures from other glass container producers and alternative forms of packaging or consolidation among competitors and customers, (4) changes in consumer preferences or customer inventory management practices, (5) the continuing consolidation of the Company’s customer base, (6) the Company’s ability to improve its glass melting technology, known as the MAGMA program, and implement it in a manner to deliver economic profit within the timeframe expected, (7) unanticipated supply chain and operational disruptions, including higher capital spending, (8) the Company’s ability to achieve expected benefits from cost management, efficiency improvements, and profitability initiatives, such as its Fit to Win program, including expected impacts from production curtailments and furnace closures, (9) seasonality of customer demand, (10) the failure of the Company’s joint venture partners to meet their obligations or commit additional capital to the joint venture, (11) labor shortages, labor cost increases or strikes, (12) the Company’s ability to acquire or divest businesses, acquire and expand plants, integrate operations of acquired businesses and achieve expected benefits from acquisitions, divestitures or expansions, (13) the Company’s ability to generate sufficient future cash flows to ensure the Company’s goodwill is not impaired, (14) any increases in the underfunded status of the Company’s pension plans, (15) any failure or disruption of the Company’s information technology, or those of third parties on which the Company relies, or any cybersecurity or data privacy incidents affecting the Company or its third-party service providers, (16) risks related to the Company’s indebtedness or changes in capital availability or cost, including interest rate fluctuations and the ability of the Company to generate cash to service indebtedness and refinance debt on favorable terms, (17) risks associated with operating in foreign countries, (18) foreign currency fluctuations relative to the U.S. dollar, (19) changes in tax laws or U.S. trade policies, (20) the Company’s ability to comply with various environmental legal requirements, (21) risks related to recycling and recycled content laws and regulations, (22) risks related to climate-change and air emissions, including related laws or regulations and increased ESG scrutiny and changing expectations from stakeholders, and the other risk factors discussed in the company's filings with the Securities and Exchange Commission.
It is not possible to foresee or identify all such factors. Any forward-looking statements in this document are based on certain assumptions and analyses made by the company in light of its experience and perception of historical trends, current conditions, expected future developments,
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and other factors it believes are appropriate in the circumstances. Forward-looking statements are not a guarantee of future performance and actual results or developments may differ materially from expectations. While the company continually reviews trends and uncertainties affecting the company’s results of operations and financial condition, the company does not assume any obligation to update or supplement any particular forward-looking statements contained in this document.
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O-I GLASS, INC.
Condensed Consolidated Results of Operations
(Dollars in millions, except per share amounts)
| Three
months ended September 30 | Nine
months ended September 30 | |||||||||||||||
| Unaudited | 2024 | 2023 | 2024 | 2023 | ||||||||||||
| Net sales | $ | 1,679 | $ | 1,743 | $ | 5,002 | $ | 5,464 | ||||||||
| Cost of goods sold | (1,464) | (1,379) | (4,165) | (4,199) | ||||||||||||
| Gross profit | 215 | 364 | 837 | 1,265 | ||||||||||||
| Selling and administrative expense | (103) | (134) | (337) | (424) | ||||||||||||
| Research, development and engineering expense | (20) | (24) | (62) | (66) | ||||||||||||
| Interest expense, net | (87) | (78) | (252) | (263) | ||||||||||||
| Equity earnings | 20 | 40 | 75 | 100 | ||||||||||||
| Other expense, net | (82) | (86) | (98) | (106) | ||||||||||||
| Earnings (loss) before income taxes | (57) | 82 | 163 | 506 | ||||||||||||
| Provision for income taxes | (19) | (26) | (102) | (127) | ||||||||||||
| Net earnings (loss) | (76) | 56 | 61 | 379 | ||||||||||||
| Net earnings attributable to noncontrolling interests | (4) | (5) | (13) | (12) | ||||||||||||
| Net earnings (loss) attributable to the Company | $ | (80) | $ | 51 | $ | 48 | $ | 367 | ||||||||
| Basic earnings per share: | ||||||||||||||||
| Net earnings (loss) attributable to the Company | $ | (0.52) | $ | 0.33 | $ | 0.31 | $ | 2.37 | ||||||||
| Weighted average shares outstanding (thousands) | 154,619 | 154,702 | 154,724 | 154,796 | ||||||||||||
| Diluted earnings per share: | ||||||||||||||||
| Net earnings (loss) attributable to the Company | $ | (0.52) | $ | 0.32 | $ | 0.31 | $ | 2.31 | ||||||||
| Diluted average shares (thousands) | 154,619 | 159,285 | 157,537 | 159,236 | ||||||||||||
O-I GLASS, INC.
Condensed Consolidated Balance Sheets
(Dollars in millions)
| Unaudited | September 30, | December 31, | September 30, | |||||||||
| 2024 | 2023 | 2023 | ||||||||||
| Assets | ||||||||||||
| Current assets: | ||||||||||||
| Cash and cash equivalents | $ | 755 | $ | 913 | $ | 792 | ||||||
| Trade receivables, net | 794 | 671 | 766 | |||||||||
| Inventories | 1,050 | 1,071 | 1,098 | |||||||||
| Prepaid expenses and other current assets | 223 | 229 | 243 | |||||||||
| Total current assets | 2,822 | 2,884 | 2,899 | |||||||||
| Property, plant and equipment, net | 3,498 | 3,555 | 3,255 | |||||||||
| Goodwill | 1,408 | 1,473 | 1,860 | |||||||||
| Intangibles, net | 210 | 254 | 257 | |||||||||
| Other assets | 1,434 | 1,503 | 1,464 | |||||||||
| Total assets | $ | 9,372 | $ | 9,669 | $ | 9,735 | ||||||
| Liabilities and Share Owners' Equity | ||||||||||||
| Current liabilities: | ||||||||||||
| Accounts payable | $ | 1,092 | $ | 1,437 | $ | 1,250 | ||||||
| Short-term loans and long-term debt due within one year | 537 | 248 | 159 | |||||||||
| Other liabilities | 663 | 661 | 661 | |||||||||
| Total current liabilities | 2,292 | 2,346 | 2,070 | |||||||||
| Long-term debt | 4,709 | 4,698 | 4,754 | |||||||||
| Other long-term liabilities | 890 | 881 | 798 | |||||||||
| Share owners' equity | 1,481 | 1,744 | 2,113 | |||||||||
| Total liabilities and share owners' equity | $ | 9,372 | $ | 9,669 | $ | 9,735 | ||||||
O-I GLASS, INC.
Condensed Consolidated Cash Flows
(Dollars in millions)
| Unaudited | Three
months ended September 30 | Nine
months ended September 30 | ||||||||||||||
| 2024 | 2023 | 2024 | 2023 | |||||||||||||
| Cash flows from operating activities: | ||||||||||||||||
| Net earnings (loss) | $ | (76) | $ | 56 | $ | 61 | $ | 379 | ||||||||
| Non-cash charges | ||||||||||||||||
| Depreciation and amortization | 127 | 127 | 377 | 369 | ||||||||||||
| Pension expense | 8 | 8 | 24 | 22 | ||||||||||||
| Stock-based compensation expense | 3 | 7 | 9 | 36 | ||||||||||||
| Restructuring, asset impairment and related charges | 83 | 78 | 83 | 78 | ||||||||||||
| Legacy environmental charge | 1 | 11 | ||||||||||||||
| Gain on sale of miscellaneous assets | (1) | (1) | ||||||||||||||
| Cash payments | ||||||||||||||||
| Pension contributions | (4) | (7) | (13) | (24) | ||||||||||||
| Cash paid for restructuring activities | (9) | (11) | (24) | (21) | ||||||||||||
| Change in components of working capital (a) | 80 | 125 | (359) | (416) | ||||||||||||
| Other, net (b) | (21) | (44) | 3 | 14 | ||||||||||||
| Cash provided by operating activities | 191 | 339 | 171 | 437 | ||||||||||||
| Cash flows from investing activities: | ||||||||||||||||
| Cash payments for property, plant and equipment | (136) | (197) | (509) | (465) | ||||||||||||
| Contributions and advances to joint ventures | (1) | (1) | (1) | (9) | ||||||||||||
| Net cash proceeds related to disposal of misc. assets | 13 | 8 | 19 | 11 | ||||||||||||
| Net cash proceeds (payments) from hedging activities | (2) | (1) | (15) | 6 | ||||||||||||
| Cash utilized in investing activities | (126) | (191) | (506) | (457) | ||||||||||||
| Cash flows from financing activities: | ||||||||||||||||
| Changes in borrowings, net | 17 | (90) | 250 | 126 | ||||||||||||
| Shares repurchased | (10) | (10) | (30) | (30) | ||||||||||||
| Payment of finance fees | (2) | (2) | (13) | (22) | ||||||||||||
| Net cash payments for hedging activity | (40) | |||||||||||||||
| Distributions to non-controlling interests | (9) | (3) | ||||||||||||||
| Other, net(c) | (1) | 1 | (14) | |||||||||||||
| Cash provided by (utilized in) financing activities | 4 | (101) | 184 | 31 | ||||||||||||
| Effect of exchange rate fluctuations on cash | 15 | (9) | (7) | 8 | ||||||||||||
| Change in cash | 84 | 38 | (158) | 19 | ||||||||||||
| Cash at beginning of period | 671 | 754 | 913 | 773 | ||||||||||||
| Cash at end of period | $ | 755 | $ | 792 | $ | 755 | $ | 792 | ||||||||
| (a) | The Company uses various factoring programs to sell certain receivables to financial institutions as part of managing its cash flows. At September 30, 2024, December 31, 2023 and September 30, 2023, the amount of receivables sold by the Company was $544 million, $542 million and $536 million, respectively. For the nine months ended September 30, 2024 and 2023, the Company's use of its factoring programs resulted in increases of $2 million and $1 million to cash provided by operating activities, respectively. |
| (b) | Other, net includes other non-cash charges plus other changes in non-current assets and liabilities. |
| (c) | Other, net includes share settlement activity. |
O-I GLASS, INC.
Reportable Segment Information and Reconciliation to Earnings Before Income Taxes
(Dollars in millions)
| Unaudited | Three
months ended September 30 | Nine
months ended September 30 | ||||||||||||||
| 2024 | 2023 | 2024 | 2023 | |||||||||||||
| Net sales: | ||||||||||||||||
| Americas | $ | 940 | $ | 948 | $ | 2,693 | $ | 2,943 | ||||||||
| Europe | 706 | 766 | 2,216 | 2,428 | ||||||||||||
| Reportable segment totals | 1,646 | 1,714 | 4,909 | 5,371 | ||||||||||||
| Other | 33 | 29 | 93 | 93 | ||||||||||||
| Net sales | $ | 1,679 | $ | 1,743 | $ | 5,002 | $ | 5,464 | ||||||||
| Earnings (loss) before income taxes | $ | (57) | $ | 82 | $ | 163 | $ | 506 | ||||||||
| Items excluded from segment operating profit: | ||||||||||||||||
| Retained corporate costs and other | 31 | 60 | 104 | 175 | ||||||||||||
| Items not considered representative of ongoing operations (a) | 83 | 81 | 93 | 81 | ||||||||||||
| Interest expense, net | 87 | 78 | 252 | 263 | ||||||||||||
| Segment operating profit (b): | $ | 144 | $ | 301 | $ | 612 | $ | 1,025 | ||||||||
| Americas | $ | 88 | $ | 116 | $ | 296 | $ | 419 | ||||||||
| Europe | 56 | 185 | 316 | 606 | ||||||||||||
| Reportable segment totals | $ | 144 | $ | 301 | $ | 612 | $ | 1,025 | ||||||||
| Ratio of earnings (loss) before income taxes to net sales | -3.4% | 4.7% | 3.3% | 9.3% | ||||||||||||
| Segment operating profit margin (c): | ||||||||||||||||
| Americas | 9.4% | 12.2% | 11.0% | 14.2% | ||||||||||||
| Europe | 7.9% | 24.2% | 14.3% | 25.0% | ||||||||||||
| Reportable segment margin totals | 8.7% | 17.6% | 12.5% | 19.1% | ||||||||||||
| (a) | Reference reconciliation for adjusted earnings. |
| (b) | Segment operating profit consists of consolidated earnings before interest income, interest expense, and provision for income taxes and excludes amounts related to certain items that management considers not representative of ongoing operations as well as certain retained corporate costs and other adjustments. |
| The Company presents information on segment operating profit because management believes that it provides investors with a measure of operating performance separate from the level of indebtedness or other related costs of capital. The most directly comparable GAAP financial measure to segment operating profit is earnings before income taxes. The Company presents segment operating profit because management uses the measure, in combination with net sales and selected cash flow information, to evaluate performance and to allocate resources. | |
| (c) | Segment operating profit margin is segment operating profit divided by segment net sales. |
O-I GLASS, INC.
Changes in Net Sales and Segment Operating Profit for Reportable Segments
(Dollars in millions)
| Unaudited | ||||||||||||
| Three months ended September 30 | ||||||||||||
| Americas | Europe | Total | ||||||||||
| Net sales for reportable segments- 2023 | $ | 948 | $ | 766 | $ | 1,714 | ||||||
| Effects of changing foreign currency rates (a) | (46 | ) | 16 | (30 | ) | |||||||
| Price | (6 | ) | (66 | ) | (72 | ) | ||||||
| Sales volume & mix | 44 | (10 | ) | 34 | ||||||||
| Total reconciling items | (8 | ) | (60 | ) | (68 | ) | ||||||
| Net sales for reportable segments- 2024 | $ | 940 | $ | 706 | $ | 1,646 | ||||||
| Three months ended September 30 | ||||||||||||
| Americas | Europe | Total | ||||||||||
| Segment operating profit - 2023 | $ | 116 | $ | 185 | $ | 301 | ||||||
| Effects of changing foreign currency rates (a) | (1 | ) | 3 | 2 | ||||||||
| Net price (net of cost inflation) | (24 | ) | (55 | ) | (79 | ) | ||||||
| Sales volume & mix | 14 | (3 | ) | 11 | ||||||||
| Operating costs | (17 | ) | (74 | ) | (91 | ) | ||||||
| Total reconciling items | (28 | ) | (129 | ) | (157 | ) | ||||||
| Segment operating profit - 2024 | $ | 88 | $ | 56 | $ | 144 | ||||||
| Nine months ended September 30 | ||||||||||||
| Americas | Europe | Total | ||||||||||
| Net sales for reportable segments- 2023 | $ | 2,943 | $ | 2,428 | $ | 5,371 | ||||||
| Effects of changing foreign currency rates (a) | (11 | ) | 15 | 4 | ||||||||
| Price | 13 | (138 | ) | (125 | ) | |||||||
| Sales volume & mix | (252 | ) | (89 | ) | (341 | ) | ||||||
| Total reconciling items | (250 | ) | (212 | ) | (462 | ) | ||||||
| Net sales for reportable segments- 2024 | $ | 2,693 | $ | 2,216 | $ | 4,909 | ||||||
| Nine months ended September 30 | ||||||||||||
| Americas | Europe | Total | ||||||||||
| Segment operating profit - 2023 | $ | 419 | $ | 606 | $ | 1,025 | ||||||
| Effects of changing foreign currency rates (a) | 7 | (1 | ) | 7 | ||||||||
| Net price (net of cost inflation) | (25 | ) | (111 | ) | (136 | ) | ||||||
| Sales volume & mix | (42 | ) | (21 | ) | (63 | ) | ||||||
| Operating costs | (63 | ) | (158 | ) | (221 | ) | ||||||
| Total reconciling items | (123 | ) | (290 | ) | (413 | ) | ||||||
| Segment operating profit - 2024 | $ | 296 | $ | 316 | $ | 612 | ||||||
| (a) | Currency effect on net sales and segment operating profit determined by using 2024 foreign currency exchange rates to translate 2023 local currency results. |
O-I GLASS, INC.
Reconciliation for Adjusted Earnings
(Dollars in millions, except per share amounts)
The reconciliation below describes the items that management considers not representative of ongoing operations.
| Unaudited | ||||||||||||||||
| Three
months ended September 30 | Nine
months ended September 30 | |||||||||||||||
| 2024 | 2023 | 2024 | 2023 | |||||||||||||
| Net earnings (loss) attributable to the Company | $ | (80) | $ | 51 | $ | 48 | $ | 367 | ||||||||
| Items impacting equity earnings | ||||||||||||||||
| Restructuring, asset impairment and other charges | 2 | $ | 2 | |||||||||||||
| Items impacting other income (expense), net: | ||||||||||||||||
| Legacy environmental charge | 1 | 11 | ||||||||||||||
| Restructuring, asset impairment and other charges | 81 | 81 | 81 | 81 | ||||||||||||
| Gain on sale of miscellaneous assets | (1) | (1) | ||||||||||||||
| Items impacting interest expense: | ||||||||||||||||
| Charges for note repurchase premiums and write-off of deferred finance fees and related charges | 2 | 39 | ||||||||||||||
| Items impacting income tax: | ||||||||||||||||
| Net benefit for income tax on items above | (9) | (6) | (9) | (15) | ||||||||||||
| Total adjusting items (non-GAAP) | $ | 74 | $ | 75 | $ | 86 | $ | 105 | ||||||||
| Adjusted earnings (non-GAAP) | $ | (6) | $ | 127 | $ | 134 | $ | 473 | ||||||||
| Diluted average shares (thousands) | 154,619 | 159,285 | 157,537 | 159,236 | ||||||||||||
| Net earnings attributable to the Company (diluted) | $ | (0.52) | $ | 0.32 | $ | 0.31 | $ | 2.31 | ||||||||
| Adjusted earnings per share (non-GAAP) | $ | (0.04) | $ | 0.80 | $ | 0.85 | $ | 2.97 | ||||||||
The Company is unable to present a quantitative reconciliation of its forward-looking non-GAAP measure, adjusted earnings and adjusted earnings per share, for the periods ending after September 30, 2024 to its most directly comparable GAAP financial measure, net earnings attributable to the Company, because management cannot reliably predict all of the necessary components of this GAAP financial measure without unreasonable efforts. Net earnings attributable to the Company includes several significant items, such as restructuring charges, asset impairment charges, charges for the write-off of finance fees, and the income tax effect on such items. The decisions and events that typically lead to the recognition of these and other similar items are complex and inherently unpredictable, and the amount recognized for each item can vary significantly. Accordingly, the Company is unable to provide a reconciliation of adjusted earnings and adjusted earnings per share to net earnings attributable to the Company or address the probable significance of the unavailable information, which could be material to the Company's future financial results.
Unaudited
O-I GLASS, INC.
Reconciliation to Free Cash Flow
(Dollars in millions)
| Current
Forecast for Year Ended December 31, 2024 | Previous Forecast for Year Ended December 31, 2024 |
||||||
| Cash provided by operating activities | $ | 380 to 420 | $ | 625 to 650 | |||
| Cash payments for property, plant and equipment | (550) | (550 to 575) | |||||
| Free cash flow (non-GAAP) | Use of $130 to 170 | $ | 50 to 100 | ||||
O-I GLASS, INC.
Reconciliation to Adjusted Effective Tax Rate
(Dollars in millions)
The Company is unable to present a quantitative reconciliation of its forward-looking non-GAAP measure, adjusted effective tax rate, for the year ending December 31, 2024, to its most directly comparable GAAP financial measure, provision for income taxes divided by earnings (loss) before income taxes, because management cannot reliably predict all of the necessary components of these GAAP financial measures without unreasonable efforts. Earnings (loss) before income taxes includes several significant items, such as restructuring charges, asset impairment charges, and charges for the write-off of finance fees, and the provision for income taxes would include the income tax effect on such items. The decisions and events that typically lead to the recognition of these and other similar items are complex and inherently unpredictable, and the amount recognized for each item can vary significantly. Accordingly, the Company is unable to provide a reconciliation of adjusted effective tax rate to earnings (loss) before income taxes divided by provision for income taxes or address the probable significance of the unavailable information, which could be material to the Company's future financial results.