O-I Glass Reports Full Year and Fourth Quarter 2024 Results
O-I Glass (NYSE: OI) reported challenging full-year 2024 results with net sales declining 8% to $6.5 billion. The company posted a net loss of $0.69 per share, with adjusted earnings of $0.81 per share. Performance was impacted by lower average selling prices, reduced sales volumes, and higher operating costs due to inventory management.
Key financial metrics showed deterioration: earnings before income taxes fell to $38M from $67M, segment operating profit decreased to $748M from $1,193M, and free cash flow was negative $128M compared to positive $130M in 2023. Both Americas and Europe segments experienced profit declines due to lower pricing and sales volumes.
Looking ahead to 2025, O-I expects improved performance with adjusted EPS guidance of $1.20-$1.50, representing a 50-85% increase from 2024. The company anticipates free cash flow of $150-$200M, driven by cost savings from their Fit To Win initiative targeting $175-$200M in benefits.
O-I Glass (NYSE: OI) ha riportato risultati difficili per l'intero anno 2024, con vendite nette in calo dell'8% a $6,5 miliardi. L'azienda ha registrato una perdita netta di $0,69 per azione, con utili rettificati di $0,81 per azione. Le performance sono state influenzate da prezzi di vendita medi più bassi, volumi di vendita ridotti e costi operativi più elevati a causa della gestione dell'inventario.
Le principali metriche finanziarie hanno mostrato un deterioramento: gli utili prima delle imposte sono diminuiti a $38 milioni da $67 milioni, il profitto operativo del segmento è sceso a $748 milioni da $1.193 milioni, e il flusso di cassa libero è stato negativo per $128 milioni rispetto a un positivo di $130 milioni nel 2023. Sia le segmentazioni Americhe che Europa hanno subito una diminuzione dei profitti a causa di prezzi e volumi di vendita inferiori.
Guardando al 2025, O-I prevede un miglioramento delle performance con una guida EPS rettificata di $1,20-$1,50, che rappresenta un aumento del 50-85% rispetto al 2024. L'azienda prevede un flusso di cassa libero di $150-$200 milioni, alimentato dai risparmi sui costi derivanti dalla loro iniziativa Fit To Win, che mira a $175-$200 milioni di benefici.
O-I Glass (NYSE: OI) reportó resultados desafiantes para el año completo 2024, con ventas netas que cayeron un 8% a $6.5 mil millones. La compañía reportó una pérdida neta de $0.69 por acción, con ganancias ajustadas de $0.81 por acción. El rendimiento se vio afectado por precios de venta promedio más bajos, volúmenes de ventas reducidos y costos operativos más altos debido a la gestión de inventario.
Las métricas financieras clave mostraron un deterioro: las ganancias antes de impuestos cayeron a $38 millones desde $67 millones, el beneficio operativo del segmento disminuyó a $748 millones desde $1,193 millones, y el flujo de caja libre fue negativo en $128 millones en comparación con un positivo de $130 millones en 2023. Ambos segmentos de las Américas y Europa experimentaron caídas en las ganancias debido a precios y volúmenes de ventas más bajos.
De cara a 2025, O-I espera una mejora en el rendimiento con una guía de EPS ajustada de $1.20-$1.50, lo que representa un aumento del 50-85% respecto a 2024. La compañía anticipa un flujo de caja libre de $150-$200 millones, impulsado por ahorros de costos de su iniciativa Fit To Win, que busca $175-$200 millones en beneficios.
O-I Glass (NYSE: OI)는 2024년 전체 연도의 도전적인 실적을 보고했으며, 순매출이 8% 감소하여 65억 달러에 달했습니다. 이 회사는 주당 0.69달러의 순손실을 기록했으며, 조정 후 주당 이익은 0.81달러입니다. 실적은 평균 판매 가격 감소, 판매량 감소, 재고 관리로 인한 운영비 증가에 영향을 받았습니다.
주요 재무 지표는 악화되었습니다: 세전 이익은 6700만 달러에서 3800만 달러로 감소하였고, 부문 운영 이익은 11억 9300만 달러에서 7억 4800만 달러로 줄었습니다. 2023년에 비해 자유 현금 흐름은 1억 3000만 달러에서 마이너스 1억 2800만 달러로 변동했습니다. 아메리카와 유럽 부문 모두 가격 하락과 판매량 감소로 인해 수익이 감소했습니다.
2025년을 바라보며 O-I는 조정된 EPS 가이던스를 1.20~1.50달러로 예상하고 있으며, 이는 2024년 대비 50~85% 증가를 나타냅니다. 이 회사는 Fit To Win 이니셔티브에서 발생하는 비용 절감으로 1억 5000만~2억 달러의 자유 현금 흐름을 예상하고 있습니다.
O-I Glass (NYSE: OI) a annoncé des résultats difficiles pour l'année complète 2024, avec des ventes nettes en baisse de 8 % à 6,5 milliards de dollars. L'entreprise a enregistré une perte nette de 0,69 dollar par action, avec un bénéfice ajusté de 0,81 dollar par action. La performance a été affectée par des prix de vente moyens plus bas, des volumes de vente réduits et des coûts d'exploitation plus élevés en raison de la gestion des stocks.
Les principaux indicateurs financiers ont montré une détérioration : les bénéfices avant impôts sont tombés à 38 millions de dollars contre 67 millions de dollars, le bénéfice opérationnel du segment a diminué à 748 millions de dollars contre 1 193 millions de dollars, et le flux de trésorerie libre a été négatif de 128 millions de dollars contre 130 millions de dollars positifs en 2023. Les segments Amériques et Europe ont tous deux connu des déclins de bénéfices en raison de baisses de prix et de volumes de vente.
En perspective de 2025, O-I s'attend à une amélioration de la performance avec une guidance EPS ajustée de 1,20 à 1,50 dollar, représentant une augmentation de 50 à 85 % par rapport à 2024. L'entreprise anticipe un flux de trésorerie libre de 150 à 200 millions de dollars, soutenu par des économies de coûts grâce à son initiative Fit To Win visant à obtenir des bénéfices de 175 à 200 millions de dollars.
O-I Glass (NYSE: OI) hat herausfordernde Ergebnisse für das Gesamtjahr 2024 berichtet, mit einem Rückgang der Nettoumsätze um 8% auf 6,5 Milliarden Dollar. Das Unternehmen verzeichnete einen Nettoverlust von 0,69 Dollar pro Aktie, mit angepassten Gewinnen von 0,81 Dollar pro Aktie. Die Leistung wurde durch niedrigere durchschnittliche Verkaufspreise, reduzierte Verkaufsvolumina und höhere Betriebskosten aufgrund des Bestandsmanagements beeinträchtigt.
Wichtige Finanzkennzahlen zeigten eine Verschlechterung: Die Erträge vor Steuern fielen von 67 Millionen Dollar auf 38 Millionen Dollar, der operative Gewinn des Segments sank von 1,193 Millionen Dollar auf 748 Millionen Dollar, und der freie Cashflow war mit minus 128 Millionen Dollar negativ im Vergleich zu positiv 130 Millionen Dollar im Jahr 2023. Sowohl die Segmente Nordamerika als auch Europa erlebten Gewinneinbußen aufgrund niedrigerer Preise und Verkaufsvolumina.
Für 2025 erwartet O-I eine verbesserte Leistung mit einer angepassten EPS-Prognose von 1,20 bis 1,50 Dollar, was eine Steigerung von 50-85% gegenüber 2024 bedeutet. Das Unternehmen rechnet mit einem freien Cashflow von 150 bis 200 Millionen Dollar, der durch Kosteneinsparungen aus der Initiative Fit To Win, die 175 bis 200 Millionen Dollar an Vorteilen anstrebt, vorangetrieben wird.
- Adjusted EPS of $0.81 exceeded guidance range of $0.70-$0.80
- Projected 50-85% increase in adjusted EPS for 2025 ($1.20-$1.50)
- Expected Fit To Win cost savings of $175-$200M in 2025
- Anticipated reduction in capital expenditures to $400-450M in 2025 from $617M in 2024
- Lower corporate costs and management incentives reduced retained costs to $134M from $224M
- 8% decline in net sales to $6.5 billion
- Net loss of $0.69 per share in 2024
- Segment operating profit decreased 37% to $748M from $1,193M
- Negative free cash flow of $128M compared to positive $130M in 2023
- Net debt increased to $4.2B from $4.0B
- 2% decline in average selling prices and 4% lower sales volume
Insights
O-I Glass's FY2024 results reveal significant operational challenges, with systemic pressures across all key financial metrics. The
Regional performance divergence is notable: Americas segment saw a
The balance sheet position warrants attention, with total debt increasing to
The projected
The operational challenges in 2024 reflect a complex interplay of inventory management decisions and market conditions. The aggressive production curtailments, while necessary for inventory control, resulted in significant cost inefficiencies. Europe bore the brunt with a
The Fit To Win initiative represents a important pivot in operational strategy. The targeted
The reduction in planned capital expenditure to
PERRYSBURG, Ohio, Feb. 04, 2025 (GLOBE NEWSWIRE) -- FOR IMMEDIATE RELEASE
- Rapidly Implementing O-I’s Fit To Win Initiative To Significantly Improve Performance
- Anticipate Stronger 2025 Earnings and Cash Flow
O-I Glass, Inc. (“O-I”) (NYSE: OI) today reported financial results for the full year and fourth quarter ended December 31, 2024.
Full Year 2024 Results
Net Earnings (Loss) Attributable to To the Company Earnings Per Share | Earnings Before Income Taxes $M | Cash Provided by Operating Activities $M | ||||||||||||
| FY24 | FY23 | FY24 | FY23 | FY24 | FY23 | |||||||||
| Reported | ( | |||||||||||||
| Adjusted Earnings Earnings Per Share (Diluted) | Segment Operating Profit $M | Free Cash Flow – Source (Use) $M | ||||||||||||
| FY24 | FY23 | FY24 | FY23 | FY24 | FY23 | |||||||||
| Non - GAAP | Guidance: | ( Guidance: ( | ||||||||||||
"2024 was a challenging year for the company, with a decline in net sales and earnings before income taxes. Performance was impacted by market pressures including lower average selling prices, reduced sales volumes and temporarily higher operating costs, as we cut our inventory levels. Faced with these challenges, we took decisive action to reduce costs and manage working capital,” said Gordon Hardie, O-I Glass CEO.
“Looking ahead, we are aggressively implementing our Fit To Win initiative to drive improved performance and greater value. We expect this approach to enhance our overall competitiveness through greater operational efficiency, reduce enterprise costs and to position us for future sustainable value creation.”
“While we remain cautious about the commercial outlook, we anticipate better 2025 results driven by substantial cost savings from Fit To Win and higher production levels, as we moderate temporary curtailments.”
“We are committed to improving economic profit and free cash flow and delivering long-term value to our shareholders,” concluded Hardie.
Net sales for 2024 were
Earnings before income taxes were
Segment operating profit was
- Americas: Segment operating profit in the Americas was
$392 million , down from$511 million in the prior year. This decline was due to lower net price which impacted earnings by$41 million , a$37 million headwind from a 3.5 percent decline in sales volume (in tons), and a$44 million increase in operating costs attributed to additional temporary production curtailments to rebalance inventory levels and start-up costs at the company’s first MAGMA greenfield line in Bowling Green, KY. Additionally, segment operating profit reflected a$3 million favorable foreign currency translation. - Europe: Segment operating profit in Europe was
$356 million , compared to$682 million in the prior year. This decline was due to lower net price which impacted earnings$140 million , a 4 percent decrease in sales volume (in tons) reducing segment operating profit by$29 million , and a$155 million increase in operating costs resulting from significant temporary production curtailments to rebalance inventories. Unfavorable foreign currency translation also impacted segment operating profit by$2 million .
Retained corporate and other costs were
Net interest expense totaled
The company reported a net loss attributable to the company of
Adjusted earnings were
Cash provided by operating activities was
Free cash flow was a use of
Total debt was
Fourth Quarter 2024 Results
Net Loss Attributable to the Company Earnings Per Share | Loss Before Income Taxes $M | |||||||||||
| 4Q24 | 4Q23 | 4Q24 | 4Q23 | |||||||||
| Reported | ( | ( | ( | ( | ||||||||
| Adjusted Earnings Earnings Per Share (Diluted) | Segment Operating Profit $M | |||||||||||
| 4Q24 | 4Q23 | 4Q24 | 4Q23 | |||||||||
| Non – GAAP | ( | |||||||||||
Net sales for the fourth quarter of 2024 were
The company reported a
Segment operating profit was
- Americas: Segment operating profit in the Americas was
$96 million , up from$93 million in the fourth quarter of 2023. Segment operating profit benefited$5 million from a 5 percent growth in sales volume (in tons) and$19 million in lower operating costs while unfavorable net price was a$16 million headwind. Additionally, segment operating profit was impacted$5 million from unfavorable foreign currency translation. - Europe: Segment operating profit in Europe was
$40 million , down from$75 million in the fourth quarter of 2023. Lower segment operating profit reflected$29 million of unfavorable net price and a$8 million impact from a 5 percent decrease in sales volume (in tons), partially offset by$3 million in lower operating costs. Unfavorable foreign currency translation also impacted segment operating profit by$1 million .
Retained corporate and other costs were
The company reported a net loss attributable to the company of
Adjusted earnings were a loss of
2025 Outlook
| 2025 Guidance | 2024 Actual | |||
| Adjusted Earnings Per Share | ||||
| Free Cash Flow – Source / (Use) ($M) | ( | |||
O-I anticipates 2025 adjusted EPS will be in the range of
O-I expects free cash flow of between
Guidance primarily reflects the company’s current view on sales and production volume, mix and working capital trends; it does not reflect potential impact of tariffs on U.S. imports or retaliatory tariffs on U.S. exports. O-I’s adjusted earnings outlook assumes foreign currency rates as of January 31, 2025, and a full-year adjusted effective tax rate of approximately 33 to 36 percent. The earnings and cash flow guidance ranges may not fully reflect uncertainty in macroeconomic conditions, currency rates, energy and raw materials costs, supply chain disruptions, labor challenges, and success in global profitability improvement initiatives, among other factors.
Conference Call Scheduled for February 5, 2025
O-I CEO Gordon Hardie and CFO John Haudrich will conduct a conference call to discuss the company’s latest results on Wednesday, February 5, 2025, 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 first quarter 2025 earnings conference call is currently scheduled for Wednesday, April 30, 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 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 21,000 people across 69 plants in 19 countries, O-I achieved net sales of
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, net debt 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 (loss) 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 (loss) 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 (loss) 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.
Net debt is defined as total debt less cash. Management uses net debt to analyze the liquidity of the company.
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.
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,” “commit,” 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 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, reduction in force and furnace closures, (2) 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 changes in laws or policies, war, civil disturbance or acts of terrorism, natural disasters, public health issues and weather, (3) 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), (4) competitive pressures from other glass container producers and alternative forms of packaging or consolidation among competitors and customers, (5) changes in consumer preferences or customer inventory management practices, (6) the continuing consolidation of the company’s customer base, (7) 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 in addition to successfully achieving key production and commercial milestones, (8) unanticipated supply chain and operational disruptions, including higher capital spending, (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 global 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, 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.
Attachments
FAQ
What caused O-I Glass (OI) earnings to decline in 2024?
What is O-I Glass's (OI) earnings guidance for 2025?
How much will O-I Glass (OI) save from its Fit To Win initiative in 2025?
What was O-I Glass's (OI) free cash flow in 2024?
How much did O-I Glass (OI) sales decline in 2024?
