Over the last four quarters, the company has surpassed consensus EPS estimates four times. O-I Glass shares have lost about 30.1% since the beginning of the year versus the S&P 500's gain of 14.5%. There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately. Empirical research sho ...

[Financial Highlights](index=1&type=section&id=Financial%20Highlights) O-I Glass reported a decline in Q2 2024 financial performance, with lower sales and earnings, while introducing a new value creation program Q2 2024 Key Financial Metrics (vs. Q2 2023) | Metric | Q2 2024 | Q2 2023 | Change | | :--- | :--- | :--- | :--- | | Net Sales | $1.7B | $1.9B | ▼ | | Net Earnings per Share (Diluted) | $0.36 | $0.69 | ▼ 47.8% | | Adjusted Earnings per Share (Non-GAAP) | $0.44 | $0.88 | ▼ 50.0% | | Segment Operating Profit (Non-GAAP) | $233M | $326M | ▼ 28.5% | - Net sales decline was attributed to **2% lower average selling prices** and a **4.5% decrease in sales volume** (in tons)[33](index=33&type=chunk) - New CEO Gordon Hardie introduced the **"Fit To Win" program**, which is aimed at increasing the company's value and is expected to **significantly boost performance over the next three years**[29](index=29&type=chunk) - Management observed **good sequential improvement** in year-over-year shipments as destocking across the value chain moderated and anticipates **year-over-year sales volume growth starting in the second half of 2024**[55](index=55&type=chunk) [2024 Business Outlook](index=2&type=section&id=2024%20Business%20Outlook) O-I Glass revised its full-year 2024 guidance downwards, anticipating lower sales and earnings, and plans furnace closures Full-Year 2024 Guidance Update | Metric | Current Guidance | Prior Guidance | | :--- | :--- | :--- | | Sales Volume Growth (in Tons) | Flat to ▼ LSD | Flat to ▲ LSD | | Adjusted Earnings Per Share (EPS) | $1.00 - $1.25 | $1.50 - $2.00 | | Free Cash Flow | $50M - $100M | $100M - $150M | - The company plans **additional temporary production curtailment**, concentrated in Q3, to **reduce inventory levels** to be consistent with 2022's historically low levels[36](index=36&type=chunk)[59](index=59&type=chunk) - As part of the "Fit to Win" initiative, O-I anticipates **at least six indefinite or permanent furnace closures** over the next three quarters to **reduce redundant capacity** and optimize its network[59](index=59&type=chunk) - The full-year adjusted effective tax rate outlook has been **increased to approximately 33% to 35%**, up from the prior outlook of 30% to 33%[37](index=37&type=chunk) [Consolidated Financial Statements](index=6&type=section&id=Consolidated%20Financial%20Statements) This section presents O-I Glass's condensed consolidated income statements, balance sheets, and cash flow statements for the reporting periods [Condensed Consolidated Results of Operations (Income Statement)](index=6&type=section&id=Condensed%20Consolidated%20Results%20of%20Operations) O-I's Q2 2024 net sales decreased to **$1.73 billion**, with gross profit and net earnings also declining significantly year-over-year Consolidated Results of Operations (in millions) | Metric | Three Months Ended June 30, 2024 | Three Months Ended June 30, 2023 | Six Months Ended June 30, 2024 | Six Months Ended June 30, 2023 | | :--- | :--- | :--- | :--- | :--- | | Net Sales | $1,729 | $1,890 | $3,322 | $3,721 | | Gross Profit | $303 | $416 | $621 | $900 | | Earnings Before Income Taxes | $104 | $154 | $221 | $424 | | Net Earnings Attributable to the Company | $57 | $110 | $129 | $316 | Earnings Per Share (Diluted) | Period | 2024 | 2023 | | :--- | :--- | :--- | | Three Months Ended June 30 | $0.36 | $0.69 | | Six Months Ended June 30 | $0.81 | $1.98 | [Condensed Consolidated Balance Sheets](index=7&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) As of June 30, 2024, O-I's total assets and share owners' equity decreased, while total liabilities saw a slight reduction Key Balance Sheet Items (in millions) | Account | June 30, 2024 | Dec 31, 2023 | June 30, 2023 | | :--- | :--- | :--- | :--- | | Total Current Assets | $2,819 | $2,884 | $3,035 | | Total Assets | $9,334 | $9,669 | $9,911 | | Total Current Liabilities | $2,234 | $2,346 | $2,131 | | Long-term Debt | $4,648 | $4,698 | $4,778 | | Share Owners' Equity | $1,631 | $1,744 | $2,143 | [Condensed Consolidated Cash Flows](index=8&type=section&id=Condensed%20Consolidated%20Cash%20Flows) Cash utilized in operating activities for the first six months of 2024 was **$20 million**, a significant decline from the prior year Cash Flow Summary (in millions) | Cash Flow Activity | Six Months Ended June 30, 2024 | Six Months Ended June 30, 2023 | | :--- | :--- | :--- | | Cash provided by (utilized in) operating activities | $(20) | $98 | | Cash utilized in investing activities | $(380) | $(266) | | Cash provided by financing activities | $180 | $132 | | Change in cash | $(242) | $(19) | | Cash at end of period | $671 | $754 | - For the first six months of 2024, the company's use of factoring programs **increased cash provided by operating activities by $90 million**, compared to a **$21 million** increase in the same period of 2023[47](index=47&type=chunk) [Segment Performance](index=9&type=section&id=Segment%20Performance) Both Americas and Europe segments saw Q2 2024 operating profit declines due to lower sales, prices, and higher curtailment costs Segment Performance - Q2 2024 vs Q2 2023 (in millions) | Segment | Net Sales Q2 2024 | Net Sales Q2 2023 | Operating Profit Q2 2024 | Operating Profit Q2 2023 | | :--- | :--- | :--- | :--- | :--- | | Americas | $899 | $996 | $106 | $126 | | Europe | $802 | $863 | $127 | $200 | | **Total** | **$1,701** | **$1,859** | **$233** | **$326** | - Americas' profit decline was driven by **8.5% lower sales volume**, with **operating costs increasing** as benefits from margin initiatives were offset by production curtailment[56](index=56&type=chunk) - Europe's profit decline was mostly due to **lower net price**, while sales volume was flat. **Operating costs were higher** due to elevated temporary production curtailment[56](index=56&type=chunk) Change in Net Sales from 2023 to 2024 (Six Months Ended June 30, in millions) | Reconciling Item | Americas | Europe | Total | | :--- | :--- | :--- | :--- | | **Net Sales 2023** | **$1,996** | **$1,662** | **$3,658** | | Price | $19 | $(72) | $(53) | | Sales volume & mix | $(296) | $(79) | $(375) | | **Net Sales 2024** | **$1,753** | **$1,511** | **$3,264** | [Reconciliation of GAAP to Non-GAAP Measures](index=11&type=section&id=Reconciliation%20of%20GAAP%20to%20Non-GAAP%20Measures) This section reconciles non-GAAP financial measures, such as adjusted earnings, free cash flow, and adjusted effective tax rate, to their GAAP equivalents [Reconciliation for Adjusted Earnings](index=11&type=section&id=Reconciliation%20for%20Adjusted%20Earnings) Q2 2024 adjusted earnings (non-GAAP) were **$69 million**, or **$0.44** per diluted share, a significant decrease from Q2 2023 Adjusted Earnings Reconciliation - Q2 2024 vs Q2 2023 (in millions, except per share) | Metric | Q2 2024 | Q2 2023 | | :--- | :--- | :--- | | Net earnings attributable to the Company (GAAP) | $57 | $110 | | Total adjusting items | $12 | $30 | | **Adjusted earnings (non-GAAP)** | **$69** | **$140** | | Net earnings per share (diluted, GAAP) | $0.36 | $0.69 | | **Adjusted earnings per share (non-GAAP)** | **$0.44** | **$0.88** | [Reconciliation to Free Cash Flow](index=12&type=section&id=Reconciliation%20to%20Free%20Cash%20Flow) O-I Glass lowered its full-year 2024 free cash flow forecast to **$50 million - $100 million**, reflecting a reduced operating cash outlook Full-Year 2024 Free Cash Flow Forecast (in millions) | Metric | Current Forecast | Previous Forecast | | :--- | :--- | :--- | | Cash provided by operating activities | $625 to $650 | $675 to $700 | | Cash payments for property, plant and equipment | $(550) to $(575) | $(550) to $(575) | | **Free cash flow (non-GAAP)** | **$50 to $100** | **$100 to $150** | [Reconciliation to Adjusted Effective Tax Rate](index=12&type=section&id=Reconciliation%20to%20Adjusted%20Effective%20Tax%20Rate) The adjusted effective tax rate for Q2 2024 significantly increased to **36.2%** due to a shift in the regional mix of earnings Effective Tax Rate Reconciliation - Q2 2024 vs Q2 2023 | Metric | Q2 2024 | Q2 2023 | | :--- | :--- | :--- | | Effective Tax Rate (GAAP) | 40.4% | 26.6% | | **Adjusted Effective Tax Rate (non-GAAP)** | **36.2%** | **25.9%** | [Other Information](index=3&type=section&id=Other%20Information) This section provides corporate background, defines non-GAAP measures, and outlines risks associated with forward-looking statements [About O-I Glass](index=3&type=section&id=About%20O-I%20Glass) O-I Glass is a **leading global manufacturer** of glass packaging, with **$7.1 billion** in 2023 net sales and operations across **19 countries** - O-I is a **leading global producer** of glass bottles and jars, with approximately **23,000 employees**, **68 plants in 19 countries**, and achieved **net sales of $7.1 billion in 2023**[7](index=7&type=chunk) [Non-GAAP Financial Measures & Forward-Looking Statements](index=3&type=section&id=Non-GAAP%20Financial%20Measures%20%26%20Forward-Looking%20Statements) Management uses **non-GAAP measures** for **performance assessment**, while forward-looking statements face risks including **economic conditions** and **supply chain disruptions** - Management uses **non-GAAP measures** like adjusted earnings, adjusted EPS, free cash flow, and segment operating profit for **performance assessment**, as they exclude items not reflective of principal business operations[39](index=39&type=chunk)[40](index=40&type=chunk) - Forward-looking statements are subject to a **variety of risks**, including **economic conditions**, **raw material costs**, **competitive pressures**, changes in consumer preferences, **supply chain disruptions**, and risks related to the **MAGMA program**[10](index=10&type=chunk)[11](index=11&type=chunk)[65](index=65&type=chunk)

PERRYSBURG, Ohio, July 30, 2024 (GLOBE NEWSWIRE) -- FOR IMMEDIATE RELEASE O-I Glass, Inc. ("O-I") (NYSE: OI) today reported financial results for the second quarter ended June 30, 2024. | --- | --- | --- | --- | --- | |------------|----------------------------|--------------------------------------------------|-----------|-------------------------------------| | | Per Share (Diluted) \n2Q24 | Net Earnings Attributable to the Company \n2Q23 | $M \n2Q24 | Earnings Before Income Taxes \n2Q23 | | Reported | $0. ...

Core Viewpoint - O-I Glass is expected to report a year-over-year decline in earnings due to lower revenues, with the consensus EPS estimate at $0.42, reflecting a decrease of 52.3% compared to the previous year [10][12]. Earnings Expectations - The upcoming earnings report is anticipated to be released on July 30, with revenues expected to be $1.75 billion, down 7.2% from the year-ago quarter [2][3]. - The Most Accurate Estimate for O-I Glass is lower than the Zacks Consensus Estimate, resulting in an Earnings ESP of -0.79%, indicating a bearish outlook from analysts [22]. Historical Performance - O-I Glass has beaten consensus EPS estimates in the last four quarters, delivering a surprise of +25% in the most recent quarter where it reported earnings of $0.45 against an expectation of $0.36 [8][24]. Analyst Sentiment - The consensus EPS estimate has remained unchanged over the last 30 days, reflecting a collective reassessment by covering analysts [13]. - The stock currently holds a Zacks Rank of 2 (Buy), which suggests a relatively positive sentiment despite the negative Earnings ESP [16][22]. Predictive Models - The Zacks Earnings ESP model indicates that a positive Earnings ESP is a strong predictor of an earnings beat, particularly when combined with a solid Zacks Rank [1]. - However, a negative Earnings ESP reading complicates the prediction of an earnings beat, making it difficult to conclude that O-I Glass will surpass the consensus EPS estimate [7][15].

Delivering the next step towards long-term global sustainability targets Investment of approximately $150 million in the Alloa site over the next two years Perrysburg, Ohio, July 02, 2024 (GLOBE NEWSWIRE) -- O-I Glass, Inc. ("O-I Glass" or "O-I") plans a major transformation of its Alloa, UK manufacturing plant into an even more technologically advanced facility with an expected significant reduction in CO2 emissions. Over the next two years, the company plans to invest approximately $150 million in a serie ...

Core Insights - O-I Glass plans to invest approximately $150 million over the next two years to upgrade its Alloa manufacturing plant, focusing on sustainability and technological advancements [1][5][10] - The transformation includes rebuilding an existing furnace with state-of-the-art technology aimed at reducing CO2 emissions and increasing the use of renewable energy and recycled glass [1][6][10] - The company aims to reduce CO2 emissions by 25% by 2030 as part of its sustainability roadmap [6] Investment and Technological Advancements - The investment will support the construction of a new furnace that enhances long-term flexibility and sustainability efforts, particularly in the Spirits segment [10] - O-I is partnering with a supplier to establish an oxygen farm adjacent to the Alloa plant, which will separate air into oxygen, nitrogen, and argon, benefiting local manufacturing and healthcare [11] Company Background and Market Position - O-I Glass is a leading producer of glass bottles and jars globally, with net sales of $6.9 billion in 2022 [2] - The Alloa plant has a long heritage dating back to 1750 and is being transformed into a modern facility while maintaining its historical significance [2][5]

Core Insights - O-I Glass has made significant progress in sustainability, achieving a nearly 20% reduction in scope 1 & 2 emissions since the 2017 base year through various innovations and projects [3][2][1] Group 1: Sustainability Achievements - The company has conserved over 24,400 tons of glass and approximately 13,120 tons of CO2 through lightweighting initiatives [2][1] - More than 100 energy reduction projects have led to the elimination of approximately 34,950 tons of CO2 emissions [1][2] - O-I has established 35 glass packaging collection sites to enhance recycling efforts in nine North American communities, contributing to the collection of 688 tons of glass [4][1] Group 2: Innovative Technologies - O-I is focusing on renewable energy sourcing, increasing recycled content, and implementing new furnace technologies to drive sustainable progress [3][5] - Recent investments include a €50 million ($54.12 million) facility in Vayres, France, for gas-oxy combustion technology and a new GOAT furnace in Zipaquira, Colombia [6][5] Group 3: Community Engagement - The Glass4GoodTM program has donated over $26,100 to United Way and saved approximately 800 tons of raw materials, along with reducing CO2 emissions equivalent to the energy use of about 28 homes for a year [4][1] - The company has created 44 closed-loop partnership programs with customers globally, conserving nearly 145,000 tons of glass [4][1] Group 4: Company Overview - O-I Glass, Inc. is a leading producer of glass bottles and jars, with revenues of $7.1 billion in 2023 and a workforce of approximately 23,000 employees across 68 plants in 19 countries [8][1]

Core Insights - O-I Glass, Inc. has published its 2024 Sustainability Report Update, showcasing significant progress towards its sustainability goals through innovation and transformation [1][5]. Sustainability Achievements - The company has achieved conservation of over 24,000 tons of glass and 13,000 tons of CO2 through lightweighting efforts [2][7]. - More than 100 energy reduction projects have led to the elimination of nearly 35,000 tons of CO2 emissions [2][7]. - O-I has established 35 glass packaging collection sites to enhance glass recycling in nine North American communities, including four Glass4GoodTM program sites that have collected 688 tons of glass and donated over $26,100 to United Way [3]. Process Innovations - O-I attributes its sustainability success to process innovations that lower carbon outcomes, implementing alternative fuel sources and innovative technologies [4][7]. - The company has reported a nearly 20% reduction in scope 1 & 2 emissions since the 2017 base year, driven by its climate strategy [7]. Investment in Innovation - Recent investments include a new facility in Bowling Green, Kentucky, for the proprietary MAGMA technology, and a €50 million ($54.12 million) investment in Vayres, France, for gas-oxy combustion technology and heat recovery systems [8]. - The company has also initiated operations of a newly built GOAT (Gas Oxy Advancement Technology) furnace in Zipaquira, Colombia [8]. Company Overview - O-I Glass is a leading global producer of glass bottles and jars, with revenues of $7.1 billion in 2023 and a workforce of approximately 23,000 across 68 plants in 19 countries [6].

By strategically charging and discharging the battery based on grid conditions, GridBeyond's AI-powered system helps to stabilize the local electricity grid during peak periods, increases O-I's resilience against brownouts, and improves the grid's efficiency and sustainability. It allows charging during times of high renewable energy availability and discharging energy to the site at peak hours of demand. With this approach, O-I is projected to conserve up to 240 tons of CO2 emissions annually at the Alloa ...

PERRYSBURG, OH/ALLOA, UK, June 25, 2024 (GLOBE NEWSWIRE) -- - O-I Glass, Inc. ("O-I Glass" or "O-I") and GridBeyond plan to implement a groundbreaking battery storage solution at O-I's Alloa, UK facility. The innovative 8MW battery system and supporting energy management system (EMS) leverages artificial intelligence to significantly enhance energy efficiency, resilience and sustainability. By strategically charging and discharging the battery based on grid conditions, GridBeyond's AI-powered system helps t ...