O-I Glass Reports Decline in Third Quarter 2024 Results

O-I Glass, Inc. (NYSE: OI) recently released its financial results for the third quarter ending September 30, 2024. The company reported a net loss attributable to the company along with a decrease in earnings before income taxes compared to the prior year period. While net sales for the quarter showed a slight decline, O-I Glass remains focused on implementing strategies to drive improved performance in the future.

The financial report revealed that the company recorded a net sales figure of $1.7 billion for the third quarter of 2024, representing a decrease of $64 million from the same period last year. This decline was primarily attributed to a 2% increase in sales volume offset by a 4% decrease in average selling prices and unfavorable foreign currency translation.

Gordon Hardie, the CEO of O-I Glass, commented on the results, noting that the lower earnings were a result of significant production curtailment aimed at reducing high inventory levels after a period of sluggish demand. He acknowledged that the decline in net price was partially offset by slightly higher shipment levels.

The company’s segment operating profit for the third quarter of 2024 was reported at $144 million, down from $301 million in the same period in 2023. The decrease was mainly seen in the Americas and Europe segments, reflecting various impacts such as lower net prices, changes in sales volume, and increased operating costs due to production curtailments.

Management outlined the Fit to Win initiative, a program aimed at delivering at least $300 million in annualized savings by 2027. Efforts to de-layer the organization, reduce costs, and optimize the manufacturing network are well underway. The company is also evaluating the closure of redundant capacity to enhance productivity.

Due to softer than anticipated market demand, O-I Glass has revised its full-year guidance for 2024. Adjusted earnings per share are now expected to be between $0.70 and $0.80, down from the previous range of $1.00 to $1.25. Additionally, the company anticipates a use of cash between $130 million and $170 million for free cash flow.

The management team is set to host a conference call on October 30, 2024, to discuss these results in further detail. O-I Glass continues to focus on improving its financial performance and implementing strategic initiatives to drive growth and sustainability in the future.

This article was generated by an automated content engine and was reviewed by a human editor prior to publication. For additional information, read O-I Glass’s 8K filing here.

O-I Glass Company Profile

O-I Glass, Inc, through its subsidiaries, engages in the manufacture and sale of glass containers to food and beverage manufacturers primarily in the Americas, Europe, and internationally. The company produces glass containers for alcoholic beverages, including beer, flavored malt beverages, spirits, and wine.