Did you analyze how O-I Glass (OI) fared in its international operations for the quarter ending March 2024? Given the widespread global presence of this glass container manufacturer, scrutinizing the trends in international revenues becomes imperative to assess its financial strength and future growth possibilities.In today's increasingly interconnected global economy, a company's ability to tap into international markets can be a pivotal factor in shaping its overall financial health and growth trajectory. ...

[FORM 10-Q Cover Page](index=1&type=section&id=FORM%2010-Q%20Cover%20Page) [Registrant Information](index=1&type=section&id=Registrant%20Information) This section provides the basic identification details of O-I Glass, Inc. as a registrant filing a Quarterly Report on Form 10-Q for the period ended March 31, 2024, confirming its filing status, stock exchange listing, and outstanding shares - O-I Glass, Inc. filed a Quarterly Report on Form 10-Q for the period ended March 31, 2024[2](index=2&type=chunk) | Indicator | Value | | :--- | :--- | | Commission file number | 1-9576 | | State of incorporation | Delaware | | Trading symbol | OI | | Exchange | New York Stock Exchange | | Large accelerated filer | Yes | | Common Stock Outstanding (March 31, 2024) | 155,721,710 shares | [Part I — FINANCIAL INFORMATION](index=2&type=section&id=Part%20I%20%E2%80%94%20FINANCIAL%20INFORMATION) [Item 1. Financial Statements](index=2&type=section&id=Item%201.%20Financial%20Statements) This section presents the unaudited condensed consolidated financial statements for O-I Glass, Inc., including the results of operations, comprehensive income, balance sheets, and cash flows for the quarter ended March 31, 2024, compared to prior periods, along with detailed explanatory notes [Condensed Consolidated Results of Operations](index=3&type=section&id=Condensed%20Consolidated%20Results%20of%20Operations) The company reported a significant decrease in net earnings attributable to the Company for the three months ended March 31, 2024, compared to the same period in 2023, primarily driven by lower net sales and gross profit | Metric (in millions) | Q1 2024 | Q1 2023 | Change (YoY) | | :--- | :--- | :--- | :--- | | Net sales | $1,593 | $1,831 | -$238 (-13.0%) | | Cost of goods sold | ($1,275) | ($1,347) | $72 | | Gross profit | $318 | $484 | -$166 (-34.3%) | | Selling and administrative expense | ($123) | ($147) | $24 | | Research, development and engineering expense | ($21) | ($19) | -$2 | | Interest expense, net | ($78) | ($68) | -$10 | | Equity earnings | $25 | $30 | -$5 | | Other expense, net | ($4) | ($10) | $6 | | Earnings before income taxes | $117 | $270 | -$153 (-56.7%) | | Provision for income taxes | ($41) | ($60) | $19 | | Net earnings | $76 | $210 | -$134 (-63.8%) | | Net earnings attributable to the Company | $72 | $206 | -$134 (-65.0%) | | Basic earnings per share | $0.46 | $1.33 | -$0.87 (-65.4%) | | Diluted earnings per share | $0.45 | $1.29 | -$0.84 (-65.1%) | [Condensed Consolidated Comprehensive Income](index=4&type=section&id=Condensed%20Consolidated%20Comprehensive%20Income) Total comprehensive income attributable to the Company decreased significantly year-over-year, primarily due to lower net earnings and a substantial reduction in foreign currency translation adjustments | Metric (in millions) | Q1 2024 | Q1 2023 | Change (YoY) | | :--- | :--- | :--- | :--- | | Net earnings | $76 | $210 | -$134 (-63.8%) | | Foreign currency translation adjustments | $5 | $161 | -$156 (-96.9%) | | Pension and other postretirement benefit adjustments, net of tax | $6 | ($3) | $9 | | Change in fair value of derivative instruments, net of tax | $9 | ($21) | $30 | | Other comprehensive income | $20 | $137 | -$117 (-85.4%) | | Total comprehensive income | $96 | $347 | -$251 (-72.3%) | | Comprehensive income attributable to the Company | $92 | $340 | -$248 (-72.9%) | [Condensed Consolidated Balance Sheets](index=5&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) The balance sheet shows a decrease in total assets and total liabilities from December 31, 2023, to March 31, 2024, with a notable reduction in cash and cash equivalents and an increase in short-term debt | Metric (in millions) | March 31, 2024 | December 31, 2023 | March 31, 2023 | | :--- | :--- | :--- | :--- | | **Assets:** | | | | | Cash and cash equivalents | $395 | $913 | $480 | | Trade receivables, net | $801 | $671 | $997 | | Inventories | $1,210 | $1,071 | $1,019 | | Total current assets | $2,660 | $2,884 | $2,752 | | Property, plant and equipment, net | $3,551 | $3,555 | $3,062 | | Goodwill | $1,458 | $1,473 | $1,867 | | Total assets | $9,409 | $9,669 | $9,425 | | **Liabilities and Share Owners' Equity:** | | | | | Accounts payable | $1,170 | $1,437 | $1,304 | | Short-term loans and long-term debt due within one year | $815 | $248 | $345 | | Total current liabilities | $2,602 | $2,346 | $2,255 | | Long-term debt | $4,119 | $4,698 | $4,422 | | Share owners' equity | $1,826 | $1,744 | $1,887 | | Total liabilities and share owners' equity | $9,409 | $9,669 | $9,425 | [Condensed Consolidated Cash Flows](index=6&type=section&id=Condensed%20Consolidated%20Cash%20Flows) Cash utilized in operating activities increased significantly in Q1 2024 compared to Q1 2023, primarily due to lower net earnings, while investing activities also utilized more cash, driven by higher capital expenditures for a new plant and expansion projects | Metric (in millions) | Q1 2024 | Q1 2023 | Change (YoY) | | :--- | :--- | :--- | :--- | | Cash utilized in operating activities | ($270) | ($193) | -$77 | | Cash utilized in investing activities | ($215) | ($98) | -$117 | | Cash utilized in financing activities | ($17) | ($16) | -$1 | | Effect of exchange rate fluctuations on cash | ($16) | $14 | -$30 | | Change in cash | ($518) | ($293) | -$225 | | Cash at beginning of period | $913 | $773 | $140 | | Cash at end of period | $395 | $480 | -$85 | - Cash payments for property, plant and equipment increased from **$95 million** in Q1 2023 to **$213 million** in Q1 2024, driven by a new plant in Kentucky and other expansion projects[16](index=16&type=chunk) [Notes to Condensed Consolidated Financial Statements](index=7&type=section&id=Notes%20to%20Condensed%20Consolidated%20Financial%20Statements) These notes provide detailed disclosures supporting the condensed consolidated financial statements, covering segment performance, revenue recognition, credit risk, inventory composition, derivative instruments, restructuring activities, pension costs, income tax provisions, debt structure, legal contingencies, equity changes, comprehensive loss components, other expenses, earnings per share calculations, and supplemental cash flow information [1. Segment Information](index=7&type=section&id=1.%20Segment%20Information) O-I Glass operates in two reportable segments: Americas and Europe, both experiencing a decline in net sales and segment operating profit in Q1 2024 compared to Q1 2023, with segment operating profit used as a non-GAAP measure to evaluate performance and allocate resources | Metric (in millions) | Americas (Q1 2024) | Americas (Q1 2023) | Europe (Q1 2024) | Europe (Q1 2023) | Total Reportable Segments (Q1 2024) | Total Reportable Segments (Q1 2023) | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Net sales | $854 | $1,000 | $709 | $799 | $1,563 | $1,799 | | Segment operating profit | $102 | $176 | $133 | $222 | $235 | $398 | | Total assets (March 31, 2024) | $5,258 | N/A | $3,729 | N/A | $8,987 | N/A | | Total assets (March 31, 2023) | N/A | $5,341 | N/A | $3,639 | N/A | $8,980 | - Segment operating profit decreased by **42%** in Americas and **40%** in Europe year-over-year[22](index=22&type=chunk) [2. Revenue](index=8&type=section&id=2.%20Revenue) Revenue is recognized when control of glass containers is transferred, primarily upon shipment, with net sales decreasing by 13% in Q1 2024 compared to Q1 2023, and alcoholic beverages remaining the largest end-use category | Customer End Use (in millions) | Americas (Q1 2024) | Europe (Q1 2024) | Total (Q1 2024) | Americas (Q1 2023) | Europe (Q1 2023) | Total (Q1 2023) | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Alcoholic beverages | $468 | $517 | $985 | $609 | $604 | $1,213 | | Food and other | $214 | $120 | $334 | $218 | $126 | $344 | | Non-alcoholic beverages | $172 | $72 | $244 | $173 | $69 | $242 | | Reportable segment totals | $854 | $709 | $1,563 | $1,000 | $799 | $1,799 | | Net sales | N/A | N/A | $1,593 | N/A | N/A | $1,831 | - No material bad debt expense, contract assets, contract liabilities, or deferred contract costs were recorded for the three-month periods ended March 31, 2024 and 2023[24](index=24&type=chunk) [3. Credit Losses](index=9&type=section&id=3.%20Credit%20Losses) The Company manages credit risk by assessing customer creditworthiness and establishing credit limits, with trade receivables, net of allowances, decreasing from $997 million at March 31, 2023, to $801 million at March 31, 2024, and no material changes in the allowance for credit losses | Metric (in millions) | March 31, 2024 | March 31, 2023 | | :--- | :--- | :--- | | Accounts receivable, net | $801 | $997 | | Allowance for credit losses | $30 | $32 | [4. Inventories](index=9&type=section&id=4.%20Inventories) Total inventories increased to $1,210 million at March 31, 2024, from $1,019 million at March 31, 2023, primarily driven by an increase in finished goods | Inventory Class (in millions) | March 31, 2024 | December 31, 2023 | March 31, 2023 | | :--- | :--- | :--- | :--- | | Finished goods | $999 | $868 | $800 | | Raw materials | $159 | $151 | $171 | | Operating supplies | $52 | $52 | $48 | | Total | $1,210 | $1,071 | $1,019 | [5. Derivative Instruments](index=10&type=section&id=5.%20Derivative%20Instruments) The Company uses various derivative instruments, including natural gas forwards, foreign exchange contracts, and interest rate swaps, to manage exposure to commodity price, foreign exchange, and interest rate risks, with the fair value of derivative liabilities significantly decreasing from December 31, 2023, to March 31, 2024 | Derivative Type (in millions) | Fair Value of Hedge Assets (Mar 31, 2024) | Fair Value of Hedge Liabilities (Mar 31, 2024) | Fair Value of Hedge Assets (Dec 31, 2023) | Fair Value of Hedge Liabilities (Dec 31, 2023) | | :--- | :--- | :--- | :--- | :--- | | Commodity forward contracts and collars | $— | $15 | $— | $14 | | Fair value hedges of foreign exchange risk | $6 | $92 | $4 | $111 | | Net investment hedges | $3 | $41 | $4 | $56 | | Total derivatives accounted for as hedges | $9 | $148 | $8 | $181 | | Foreign exchange derivative contracts (not designated as hedges) | $1 | $9 | $5 | $9 | | Total derivatives | $10 | $157 | $13 | $190 | - An unrecognized loss of **$8 million** related to commodity forward contracts and collars was included in Accumulated OCI at March 31, 2024, to be reclassified into earnings over the next 12 months[32](index=32&type=chunk) | Gain (Loss) Recognized in OCI (Effective Portion) (in millions) | Q1 2024 | Q1 2023 | | :--- | :--- | :--- | | Commodity forward contracts and collars | ($4) | ($18) | | Cash flow hedges of foreign exchange risk | $0 | ($2) | | Net Investment Hedges | $15 | ($6) | | Total | $11 | ($26) | [6. Restructuring Accruals](index=13&type=section&id=6.%20Restructuring%20Accruals) Restructuring accruals decreased to $29 million at March 31, 2024, from $39 million at January 1, 2024, primarily due to net cash payments for employee and other exit costs, with no major restructuring programs in effect | Restructuring Accruals (in millions) | Employee Costs | Asset Impairment | Other Exit Costs | Total Restructuring | | :--- | :--- | :--- | :--- | :--- | | Balance at January 1, 2024 | $27 | $0 | $12 | $39 | | Net cash paid | ($8) | $0 | ($2) | ($10) | | Balance at March 31, 2024 | $19 | $0 | $10 | $29 | | Balance at January 1, 2023 | $17 | $0 | $10 | $27 | | Net cash paid | ($3) | $0 | ($3) | ($6) | | Balance at March 31, 2023 | $14 | $0 | $7 | $21 | [7. Pension Benefit Plans](index=13&type=section&id=7.%20Pension%20Benefit%20Plans) Net periodic pension cost for both U.S. and Non-U.S. plans remained relatively stable in Q1 2024 compared to Q1 2023 | Pension Cost Component (in millions) | U.S. (Q1 2024) | U.S. (Q1 2023) | Non-U.S. (Q1 2024) | Non-U.S. (Q1 2023) | | :--- | :--- | :--- | :--- | :--- | | Service cost | $1 | $2 | $2 | $2 | | Interest cost | $11 | $11 | $9 | $9 | | Expected asset return | ($13) | ($14) | ($8) | ($7) | | Amortization of actuarial loss | $3 | $2 | $3 | $2 | | Net periodic pension cost | $2 | $1 | $6 | $6 | [8. Income Taxes](index=14&type=section&id=8.%20Income%20Taxes) The Company calculates its interim tax provision using the estimated annual effective tax rate (EAETR) methodology, with the effective tax rate for Q1 2024 significantly higher at 35% compared to 22.2% in Q1 2023, primarily due to a change in the mix of geographic earnings, and the Company is currently under income tax examination in several jurisdictions contesting assessments - The effective tax rate for Q1 2024 was **35%**, compared to **22.2%** for Q1 2023, mainly due to a shift in geographic earnings mix[107](index=107&type=chunk)[108](index=108&type=chunk) - The Company is under income tax examination in multiple jurisdictions (e.g., Brazil, Colombia, France, Germany, Indonesia, Italy, Mexico, Peru, U.S.) for years ranging from 2004 to 2022 and is contesting tax assessments[51](index=51&type=chunk) [9. Debt](index=14&type=section&id=9.%20Debt) Total long-term debt decreased from $4,840 million at December 31, 2023, to $4,815 million at March 31, 2024, following the refinancing of its credit agreement in 2022 and tender offers and new senior note issuances in May 2023 to manage its debt maturity profile, with the Company in compliance with all covenants under its Credit Agreement as of March 31, 2024 | Debt Type (in millions) | March 31, 2024 | December 31, 2023 | March 31, 2023 | | :--- | :--- | :--- | :--- | | Term Loan A | $1,391 | $1,391 | $1,426 | | Senior Notes (various maturities) | $3,232 | $3,255 | $3,297 | | Finance leases | $181 | $174 | $147 | | Other | $2 | $3 | $4 | | Total long-term debt | $4,815 | $4,840 | $4,723 | | Less amounts due within one year | $696 | $142 | $301 | | Long-term debt (non-current) | $4,119 | $4,698 | $4,422 | - At March 31, 2024, the Credit Agreement included a **$300 million** revolving credit facility, a **$950 million** multicurrency revolving credit facility, and **$1.45 billion** in term loan A facilities (**$1.39 billion** outstanding), with unused credit available of **$1.24 billion**[56](index=56&type=chunk) - The weighted average interest rate on borrowings outstanding under the Credit Agreement at March 31, 2024, was **6.60%**[56](index=56&type=chunk) - The Company was in compliance with all covenants and restrictions in the Credit Agreement as of March 31, 2024[59](index=59&type=chunk) [10. Contingencies](index=17&type=section&id=10.%20Contingencies) The Company has recorded accruals for estimated future environmental remediation costs and is involved in ongoing litigation, including an investigation by the Italian Competition Authority into alleged anti-competitive conduct, with the ultimate outcomes and potential losses for these matters not reliably estimable beyond current accruals | Environmental Remediation Accruals (in millions) | March 31, 2024 | December 31, 2023 | March 31, 2023 | | :--- | :--- | :--- | :--- | | Aggregate accruals (undiscounted) | $25 | $26 | $25 | - The Italian Competition Authority commenced an investigation in November 2023 into alleged anti-competitive conduct by nine glass manufacturers and distributors in Italy, including O-I Italy SpA and its joint venture[71](index=71&type=chunk) [11. Share Owners' Equity](index=18&type=section&id=11.%20Share%20Owners%27%20Equity) Share owners' equity increased to $1,826 million at March 31, 2024, from $1,744 million at January 1, 2024, primarily due to net earnings and other comprehensive income, partially offset by share repurchases | Share Owners' Equity (in millions) | March 31, 2024 | January 1, 2024 | | :--- | :--- | :--- | | Balance | $1,826 | $1,744 | | Net earnings | $72 | N/A | | Other comprehensive income (loss) | $20 | N/A | | Shares repurchased | ($10) | N/A | - The Company repurchased **638,506 shares** of common stock for approximately **$10 million** during Q1 2024 under a **$150 million** anti-dilutive share repurchase program, with **$20 million** remaining available[73](index=73&type=chunk) | Shares Outstanding (in thousands) | March 31, 2024 | December 31, 2023 | March 31, 2023 | | :--- | :--- | :--- | :--- | | Shares of common stock issued (including treasury shares) | 187,083 | 185,009 | 186,417 | | Treasury shares | 31,361 | 30,755 | 31,143 | [12. Accumulated Other Comprehensive Loss](index=19&type=section&id=12.%20Accumulated%20Other%20Comprehensive%20Loss) Accumulated other comprehensive loss improved to $(1,560) million at March 31, 2024, from $(1,580) million at January 1, 2024, primarily due to positive changes in derivative instruments and employee benefit plans, partially offset by exchange rate fluctuations | Component (in millions) | Balance Jan 1, 2024 | Change before reclassifications | Amounts reclassified | Translation effect | Tax effect | Balance Mar 31, 2024 | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Net Effect of Exchange Rate Fluctuations | ($949) | $5 | $0 | $0 | $0 | ($944) | | Change in Certain Derivative Instruments | ($43) | $8 | ($1) | $1 | $1 | ($34) | | Employee Benefit Plans | ($588) | ($1) | $6 | $1 | $0 | ($582) | | Total Accumulated Other Comprehensive Loss | ($1,580) | $12 | $5 | $2 | $1 | ($1,560) | [13. Other Expense, Net](index=19&type=section&id=13.%20Other%20Expense,%20Net) Other expense, net decreased to $4 million in Q1 2024 from $10 million in Q1 2023, primarily due to a reduction in other income (expense) and a foreign currency exchange loss in the prior year | Component (in millions) | Q1 2024 | Q1 2023 | | :--- | :--- | :--- | | Intangible amortization expense | ($8) | ($8) | | Foreign currency exchange loss | ($3) | $1 | | Royalty income | $6 | $7 | | Other income (expense) | $1 | ($10) | | Other expense, net | ($4) | ($10) | [14. Earnings Per Share](index=20&type=section&id=14.%20Earnings%20Per%20Share) Basic and diluted earnings per share attributable to the Company significantly decreased in Q1 2024 compared to Q1 2023, reflecting lower net earnings | Metric | Q1 2024 | Q1 2023 | | :--- | :--- | :--- | | Net earnings attributable to the Company (in millions) | $72 | $206 | | Weighted average shares outstanding (thousands) - Basic | 154,273 | 154,696 | | Weighted average diluted shares outstanding (thousands) | 158,467 | 159,094 | | Basic earnings per share | $0.46 | $1.33 | | Diluted earnings per share | $0.45 | $1.29 | - The diluted EPS computation for Q1 2024 excluded **621,013** weighted average shares due to their antidilutive effect, compared to **222,946** shares in Q1 2023[79](index=79&type=chunk) [15. Supplemental Cash Flow Information](index=20&type=section&id=15.%20Supplemental%20Cash%20Flow%20Information) Supplemental cash flow data indicates a decrease in total income taxes paid in cash and an increase in interest paid in cash for Q1 2024 compared to Q1 2023, with the Company continuing to utilize factoring programs for trade receivables and supply chain financing, and outstanding obligations under the SCF Program decreasing | Cash Payment (in millions) | Q1 2024 | Q1 2023 | | :--- | :--- | :--- | | Total income taxes paid in cash | $36 | $41 | | Interest paid in cash | $78 | $68 | | Trade Receivables Sold (in millions) | March 31, 2024 | December 31, 2023 | March 31, 2023 | | :--- | :--- | :--- | :--- | | Total trade receivables sold | $525 | $542 | $515 | | Factored under supply-chain financing programs | $172 | $178 | $176 | - The use of factoring programs decreased cash provided by operating activities by approximately **$17 million** in Q1 2024 and **$20 million** in Q1 2023[82](index=82&type=chunk) | Outstanding Payment Obligations under SCF Program (in millions) | March 31, 2024 | December 31, 2023 | March 31, 2023 | | :--- | :--- | :--- | :--- | | Outstanding obligations | $94 | $113 | $120 | [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=22&type=section&id=Item%202.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) This section provides management's perspective on the Company's financial performance and condition for the first quarter of 2024 compared to 2023, highlighting a significant decline in net sales and earnings primarily due to lower sales volumes, reduced pricing, and increased operating costs from production curtailments, and includes forward-looking information, capital resources, liquidity, and critical accounting estimates [Executive Overview — Quarters ended March 31, 2024 and 2023](index=23&type=section&id=Executive%20Overview%20%E2%80%94%20Quarters%20ended%20March%2031,%202024%20and%202023) The Company experienced a substantial decline in financial performance in Q1 2024, with net sales decreasing by 13% and net earnings attributable to the Company falling by 65% compared to Q1 2023, primarily driven by lower sales volumes, reduced average selling prices, and higher interest expenses - Net sales in Q1 2024 decreased by **$238 million (13%)** compared to Q1 2023, primarily due to lower sales volumes and average selling prices, partially offset by favorable foreign currency translation[89](index=89&type=chunk) - Earnings before income taxes were **$153 million lower** in Q1 2024, attributed to lower segment operating profit and higher interest expense, partially offset by lower retained corporate and other costs[90](index=90&type=chunk) - Net earnings attributable to the Company were **$72 million ($0.45 diluted EPS)** in Q1 2024, down from **$206 million ($1.29 diluted EPS)** in Q1 2023[92](index=92&type=chunk) [Results of Operations — First Quarter of 2024 Compared with First Quarter of 2023](index=23&type=section&id=Results%20of%20Operations%20%E2%80%94%20First%20Quarter%20of%202024%20Compared%20with%20First%20Quarter%20of%202023) This section details the specific factors contributing to the year-over-year changes in net sales, earnings before income taxes, segment operating profit, interest expense, income taxes, and net earnings, with key drivers including reduced glass container shipments due to destocking and soft consumer demand, increased operating costs from production curtailments, and higher interest rates [Net Sales](index=23&type=section&id=Net%20Sales) Net sales decreased by $238 million (13%) in Q1 2024, primarily due to a 12.5% decline in glass container shipments and lower average selling prices, partially offset by favorable foreign currency exchange rates - Glass container shipments declined approximately **12.5%** in Q1 2024, decreasing net sales by about **$264 million**, due to continued destocking, soft consumer consumption, and the early Easter holiday[93](index=93&type=chunk) - Lower average selling prices decreased net sales by **$14 million**, while favorable foreign currency exchange rates increased net sales by **$42 million**[93](index=93&type=chunk) | Impact on Reportable Segment Net Sales (in millions) | Amount | | :--- | :--- | | Price | ($14) | | Sales volume and mix | ($264) | | Effects of changing foreign currency rates | $42 | | Total effect | ($236) | | Reportable segment net sales - 2023 | $1,799 | | Reportable segment net sales - 2024 | $1,563 | - Americas net sales decreased by **$146 million (15%)**, with shipments down **15%**[94](index=94&type=chunk) - Europe net sales decreased by **$90 million (11%)**, with shipments down **10%**[96](index=96&type=chunk) [Earnings before Income Taxes and Segment Operating Profit](index=24&type=section&id=Earnings%20before%20Income%20Taxes%20and%20Segment%20Operating%20Profit) Earnings before income taxes decreased by $153 million, and segment operating profit for reportable segments decreased by $163 million (41%) in Q1 2024, primarily due to lower shipments, reduced net prices, higher operating costs from temporary production curtailments, and the non-recurrence of an energy subsidy in Europe - Segment operating profit decreased by **$163 million (41%)** in Q1 2024, driven by lower shipments, lower net prices, and higher operating costs due to lower production volumes from temporary curtailments[99](index=99&type=chunk) | Impact on Reportable Segment Operating Profit (in millions) | Amount | | :--- | :--- | | Net price (net of cost inflation) | ($15) | | Sales volume and mix | ($52) | | Operating costs | ($100) | | Effects of changing foreign currency rates | $4 | | Total net effect | ($163) | | Reportable segment operating profit - 2023 | $398 | | Reportable segment operating profit - 2024 | $235 | - Americas segment operating profit decreased by **$74 million (42%)**, with operating costs **$40 million higher** due to lower production volumes[100](index=100&type=chunk) - Europe segment operating profit decreased by **$89 million (40%)**, with operating costs **$60 million higher**, including the non-recurrence of a **$7 million** energy subsidy[103](index=103&type=chunk) - Temporary production curtailments in both Americas and Europe are expected to continue, leading to higher operating costs due to unabsorbed fixed costs[101](index=101&type=chunk)[104](index=104&type=chunk) [Interest Expense, Net](index=25&type=section&id=Interest%20Expense,%20Net) Net interest expense increased by $10 million in Q1 2024 compared to Q1 2023, primarily due to higher interest rates | Metric (in millions) | Q1 2024 | Q1 2023 | Change (YoY) | | :--- | :--- | :--- | :--- | | Net interest expense | $78 | $68 | $10 | | Primary reason | Higher interest rates | | | [Provision for Income Taxes](index=25&type=section&id=Provision%20for%20Income%20Taxes) The effective tax rate for Q1 2024 was 35%, a significant increase from 22.2% in Q1 2023, mainly attributed to a change in the mix of geographic earnings | Metric | Q1 2024 | Q1 2023 | | :--- | :--- | :--- | | Effective tax rate | 35% | 22.2% | | Primary reason for change | Change in mix of geographic earnings | | [Net Earnings Attributable to the Company](index=26&type=section&id=Net%20Earnings%20Attributable%20to%20the%20Company) Net earnings attributable to the Company decreased substantially to $72 million ($0.45 diluted EPS) in Q1 2024 from $206 million ($1.29 diluted EPS) in Q1 2023 | Metric (in millions, except EPS) | Q1 2024 | Q1 2023 | | :--- | :--- | :--- | | Net earnings attributable to the Company | $72 | $206 | | Diluted EPS | $0.45 | $1.29 | [Forward-Looking Operational and Financial Information](index=26&type=section&id=Forward-Looking%20Operational%20and%20Financial%20Information) The Company has revised its full-year 2024 outlook, expecting flat to low single-digit sales volume growth due to slower consumer recovery and prolonged destocking, which will lead to higher operating costs from continued production curtailments, though margin expansion initiatives are being accelerated, and the Company remains committed to long-term value creation, including its MAGMA deployment, anticipating specific cash flow and capital expenditure ranges for 2024 - The company now expects sales volume (in tons) to be flat to up low single digits in full year 2024 compared to 2023, reflecting slower consumer consumption recovery and longer inventory destocking in wine and spirits[112](index=112&type=chunk) - Higher operating costs are expected due to increased temporary production curtailment costs to balance supply with softer demand, with margin expansion initiatives being accelerated to partially mitigate commercial pressures[112](index=112&type=chunk) - The first MAGMA greenfield plant in Kentucky is expected to start in July or August 2024[112](index=112&type=chunk) | Metric (in millions) | Full Year 2024 Expectation | | :--- | :--- | | Cash provided by operating activities | $675 - $700 | | Capital expenditures | $550 - $575 | [Items Excluded from Reportable Segment Totals](index=26&type=section&id=Items%20Excluded%20from%20Reportable%20Segment%20Totals) Retained corporate costs and other decreased in Q1 2024 due to lower management incentive expense and reduced spending, and the Company is conducting a strategic review of its former Asia Pacific businesses to maximize shareholder value | Metric (in millions) | Q1 2024 | Q1 2023 | | :--- | :--- | :--- | | Retained corporate costs and other | $40 | $60 | | Primary reason for decrease | Lower management incentive expense and spending | | - A strategic review of the remaining businesses in the former Asia Pacific region is ongoing, exploring options like divestitures or corporate transactions to align with demand trends and improve efficiency[112](index=112&type=chunk) [Capital Resources and Liquidity](index=27&type=section&id=Capital%20Resources%20and%20Liquidity) The Company's capital structure includes a Credit Agreement with revolving credit facilities and term loans, amended in 2022, and it manages its debt through senior notes, with recent tender offers and new issuances in May 2023, maintaining compliance with debt covenants and expecting sufficient liquidity from operations and credit facilities to meet its obligations, despite increased cash utilization in operating and investing activities in Q1 2024 - The Credit Agreement, amended in August 2022, includes a **$300 million** revolving credit facility, a **$950 million** multicurrency revolving credit facility, and **$1.45 billion** in term loan A facilities (**$1.39 billion** outstanding at March 31, 2024)[115](index=115&type=chunk) - As of March 31, 2024, the Company had **$1.24 billion** in unused credit available under its revolving credit facilities and was in compliance with all covenants, including the Secured Leverage Ratio[115](index=115&type=chunk)[118](index=118&type=chunk) - In May 2023, the Company issued **€600 million** of 6.250% Senior Notes due 2028 and **$690 million** of 7.250% Senior Notes due 2031, using proceeds to repurchase existing senior notes[123](index=123&type=chunk) [Material Cash Requirements](index=28&type=section&id=Material%20Cash%20Requirements) There have been no material changes to the Company's material cash requirements at March 31, 2024, from those disclosed in its Annual Report on Form 10-K for the year ended December 31, 2023 - No material changes in cash requirements from the 2023 Annual Report on Form 10-K[126](index=126&type=chunk) [Cash Flows](index=30&type=section&id=Cash%20Flows) Cash utilized in operating activities increased to $270 million in Q1 2024 from $193 million in Q1 2023, primarily due to lower net income, while investing activities utilized $215 million, up from $98 million, driven by higher capital expenditures for a new plant, and the Company anticipates sufficient cash flows from operations and credit facilities to meet its short-term and long-term obligations | Cash Flow Activity (in millions) | Q1 2024 | Q1 2023 | | :--- | :--- | :--- | | Cash utilized in operating activities | ($270) | ($193) | | Cash utilized in investing activities | ($215) | ($98) | | Cash utilized in financing activities | ($17) | ($16) | - Working capital was a use of cash of **$492 million** in Q1 2024, compared to **$536 million** in Q1 2023, both reflecting higher inventories[128](index=128&type=chunk) - Capital spending for property, plant and equipment was **$213 million** in Q1 2024, up from **$95 million** in Q1 2023, driven by a new plant in Kentucky and other expansion projects[129](index=129&type=chunk) - The Company expects cash flows from operations and available credit to be sufficient for funding operating needs, debt service, and other obligations[131](index=131&type=chunk) [Critical Accounting Estimates](index=30&type=section&id=Critical%20Accounting%20Estimates) The Company's financial statements rely on management's estimates and assumptions, which are evaluated continuously, with no material changes in critical accounting estimates reported at March 31, 2024, compared to the 2023 Annual Report on Form 10-K - No material changes in critical accounting estimates at March 31, 2024, from those described in the Company's Annual Report on Form 10-K for the year ended December 31, 2023[134](index=134&type=chunk) [Forward-Looking Statements](index=31&type=section&id=Forward-Looking%20Statements) This section contains cautionary statements regarding forward-looking information, highlighting that actual future financial performance may differ from expectations due to various risks, including general economic conditions, raw material and energy costs, competitive pressures, changes in consumer preferences, supply chain disruptions, technological advancements (like MAGMA), labor issues, debt risks, foreign currency fluctuations, and environmental regulations - Forward-looking statements involve uncertainty and risk, and future financial performance may differ from expectations[135](index=135&type=chunk)[137](index=137&type=chunk) - Key risk factors include general political, economic, and competitive conditions, cost and availability of raw materials, labor, energy, and transportation, competitive pressures, changes in consumer preferences, supply chain disruptions, the ability to implement the MAGMA program, and risks related to indebtedness and foreign operations[136](index=136&type=chunk) [Item 3. Quantitative and Qualitative Disclosures About Market Risk](index=31&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) There have been no material changes in the Company's market risk disclosures at March 31, 2024, compared to those provided in its Annual Report on Form 10-K for the year ended December 31, 2023 - No material changes in market risk at March 31, 2024, from those described in the Company's Annual Report on Form 10-K for the year ended December 31, 2023[138](index=138&type=chunk) [Item 4. Controls and Procedures](index=32&type=section&id=Item%204.%20Controls%20and%20Procedures) The Company's management, including the CEO and CFO, concluded that its disclosure controls and procedures were effective at a reasonable assurance level as of March 31, 2024, with no material changes in internal control over financial reporting during the quarter - The Company's disclosure controls and procedures were effective at the reasonable assurance level as of March 31, 2024[140](index=140&type=chunk) - No material changes in internal control over financial reporting occurred during the fiscal quarter ended March 31, 2024[141](index=141&type=chunk) [PART II — OTHER INFORMATION](index=33&type=section&id=PART%20II%20%E2%80%94%20OTHER%20INFORMATION) [Item 1. Legal Proceedings](index=33&type=section&id=Item%201.%20Legal%20Proceedings) No environmental proceedings requiring disclosure under SEC regulations (monetary sanctions above $1 million) were pending or contemplated as of March 31, 2024, with further details on legal proceedings incorporated by reference from Note 10 of the financial statements - No environmental proceedings with potential monetary sanctions above **$1 million** were pending or contemplated as of March 31, 2024[144](index=144&type=chunk) [Item 1A. Risk Factors](index=33&type=section&id=Item%201A.%20Risk%20Factors) There have been no material changes in the Company's risk factors at March 31, 2024, from those described in its Annual Report on Form 10-K for the year ended December 31, 2023 - No material changes in risk factors at March 31, 2024, from those described in the Company's Annual Report on Form 10-K for the year ended December 31, 2023[146](index=146&type=chunk) [Item 2. Unregistered Sales of Equity Securities and Use of Proceeds](index=33&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) During Q1 2024, the Company repurchased 638,506 shares of its common stock for approximately $10 million under an anti-dilutive share repurchase program, with approximately $20 million remaining available under this program as of March 31, 2024 | Period | Total Number of Shares Purchased (in thousands) | Average Price Paid per Share | Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs (in thousands) | Approximate Dollar Value of Shares that May Yet Be Purchased Under the Plans or Programs (in millions) | | :--- | :--- | :--- | :--- | :--- | | January 1 - January 31, 2024 | 639 | $15.64 | 639 | $20 | | February 1 - February 29, 2024 | 0 | N/A | 0 | $20 | | March 1 - March 31, 2024 | 0 | N/A | 0 | $20 | | Total | 639 | $15.64 | 639 | N/A | - The share repurchases were part of a **$150 million** anti-dilutive share repurchase program authorized by the Board of Directors, intended to offset stock-based compensation[147](index=147&type=chunk) [Item 5. Other Information](index=33&type=section&id=Item%205.%20Other%20Information) No director or officer of the Company adopted or terminated a "Rule 10b5-1 trading arrangement" or "non-Rule 10b5-1 trading arrangement" during the three months ended March 31, 2024 - No Rule 10b5-1 or non-Rule 10b5-1 trading arrangements were adopted or terminated by directors or officers during Q1 2024[150](index=150&type=chunk) [Item 6. Exhibits](index=34&type=section&id=Item%206.%20Exhibits) This section lists the exhibits filed with the Form 10-Q, including forms of employee performance stock unit and restricted stock unit agreements, certifications from the Principal Executive and Financial Officers, and financial statements formatted in iXBRL - Exhibits include Employee Performance Stock Unit Agreement, Employee Restricted Stock Unit Agreement, Certifications of Principal Executive Officer and Principal Financial Officer (pursuant to Sarbanes-Oxley Act and 18 U.S.C. Section 1350), and financial statements in iXBRL format[151](index=151&type=chunk) [SIGNATURES](index=35&type=section&id=SIGNATURES) [Signature Block](index=35&type=section&id=Signature%20Block) The report is duly signed on behalf of O-I Glass, Inc. by John A. Haudrich, Senior Vice President and Chief Financial Officer, on May 1, 2024 - The report was signed by John A. Haudrich, Senior Vice President and Chief Financial Officer, on May 1, 2024[156](index=156&type=chunk)

O-I Glass, Inc. (OI) reported first-quarter 2024 earnings per share of 45 cents, which beat the Zacks Consensus Estimate of 36 cents. On a year-over-year basis, earnings plunged 65%, reflecting lower volumes due to weak consumer demand and inventory destocking across the value chain.Operational UpdateRevenues were $1.59 billion for the quarter under review, down 13% from the year-ago quarter. The top line missed the Zacks Consensus Estimate of $1.71 billion. The downside was driven by lower segmental operat ...

Financial Data and Key Metrics - Q1 2024 earnings were $0.45 per share, down from $1.29 per share in the prior year period, reflecting softer demand and temporary production curtailments [14][17] - Americas segment operating profit was $102 million, down from $176 million last year, with sales volume down 15% [91] - Europe segment operating profit totaled $133 million, down from $222 million last year, with sales volumes down 10% [18] - Adjusted earnings for 2024 are expected to be $1.50 to $2 per share, revised from the prior outlook of $2.25 to $2.65 per share due to unfavorable FX trends, higher interest rates, and a higher tax rate [19] Business Line Data and Key Metrics - Beer category showed the most improvement, with year-to-date Q1 year-on-year growth of 5.3% in Brazil, driven by premiumization [8] - Wine and spirits category destocking is expected to continue for a couple of quarters, with slower recovery due to softer consumer consumption [103][26] - April shipments were up 3% on an absolute basis, but down 10% on a per day basis when adjusted for the Easter holiday [2][16] Market Data and Key Metrics - In Brazil, the economy has been stable, and glass demand in the beer segment is solid, driven by premiumization [8] - Colombia is performing well, with mid-teens year-on-year growth, while other markets are experiencing slowdowns [141] - Europe saw improved performance in beer in North Central Europe and wine in Italy, but overall consumption recovery is slower than expected [146] Company Strategy and Industry Competition - The company is advancing its MAGMA technology, with the first Greenfield plant in Kentucky set to start up in summer 2024 [15][21] - MAGMA and Ultra technologies are expected to expand the company's total addressable market by over 30% [95] - The company is focusing on margin expansion initiatives, increasing the full-year target to at least $175 million [127] Management Commentary on Operating Environment and Future Outlook - Management expects glass demand to recover to pre-pandemic levels over time, driven by megatrends such as premiumization, health and wellness, and sustainability [12][89] - The company is confident in the long-term trajectory of glass demand and future earnings potential, despite short-term challenges [22][102] - Consumer consumption patterns are improving gradually, but at a slower rate than expected [88][101] Other Important Information - The company received up to $125 million in funding from the US Department of Energy to accelerate industrial decarbonization technologies [136] - Free cash flow for 2024 is expected to range between $100 million to $150 million, with leverage in the low threes by year-end [108] Q&A Session Summary Question: April shipment trends and Q2 outlook - April shipments were up 3% on an absolute basis but down 10% on a per day basis when adjusted for Easter. Q2 is expected to be in a narrow breakeven range, with stronger volumes in the back half of the year [2][3] Question: Performance in Brazil and competitive dynamics - Brazil's economy has been stable, and glass demand in the beer segment is solid, driven by premiumization. The company does not participate much in the carbonated soft drinks segment, which is driving demand for other substrates [5][8] Question: Destocking timeline for wine and spirits - Destocking for wine and spirits is expected to continue through the second half of the year, with slower recovery due to softer consumer consumption [26][103] Question: Curtailment activity and its impact on pricing - Curtailment activity is more pronounced in the Americas, with expectations of 10% to 12% curtailment over the balance of the year, peaking in Q2 [57][122] Question: MAGMA opportunities and margin expansion initiatives - MAGMA offers flexibility and scalability, with opportunities in fragmented premium markets. The company has increased its margin expansion initiative target to $175 million, with $75 million related to restructuring and SG&A reductions [124][125] Question: Consumer trade-down trends - Trade-down activity is concentrated in some markets and linked to promotional activity, with some movement from higher-end to lower-end bottles or different substrates [161][180]

2 This presentation 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," " ...

O-I Glass (OI) came out with quarterly earnings of $0.45 per share, beating the Zacks Consensus Estimate of $0.36 per share. This compares to earnings of $1.29 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of 25%. A quarter ago, it was expected that this glass container manufacturer would post earnings of $0.03 per share when it actually produced earnings of $0.12, delivering a surprise of 300%.Over the last four quarters, the ...

Financial Performance - Net sales for Q1 2024 were $1.6 billion, down from $1.8 billion in Q1 2023, reflecting a 12.5% decline in sales volume[2] - Net earnings attributable to the company were $0.45 per share (diluted) in Q1 2024, compared to $1.29 per share (diluted) in the prior year[8] - Earnings before income taxes decreased to $117 million in Q1 2024 from $270 million in Q1 2023, primarily due to lower segment operating profit and higher interest expense[3] - Segment operating profit was $235 million in Q1 2024, down from $398 million in the same period of 2023[4] - The ratio of earnings before income taxes to net sales for Q1 2024 was 7.3%, down from 14.7% in Q1 2023, indicating a decline in profitability[32] Guidance and Forecast - The company has revised its FY24 guidance, expecting sales volume growth to be flat to up low single digits, down from low to mid single-digit growth[9] - Adjusted earnings per share for FY24 are now projected to be between $1.50 and $2.00, reduced from the previous range of $2.25 to $2.65[11] - Free cash flow is expected to be between $100 million and $150 million, down from the prior estimate of $150 million to $200 million[11] - Free cash flow forecast for the year ending December 31, 2024 is projected to be between $100 million and $150 million, down from the prior forecast of $150 million to $200 million[39] Segment Performance - The Americas segment operating profit was $102 million, down from $176 million, reflecting a 15% decline in sales volume[12] - Segment operating profit for the Americas decreased to $102 million in Q1 2024 from $176 million in Q1 2023, a drop of 42.0%[36] Cash Flow and Assets - Cash utilized by continuing operating activities was $(270) million for Q1 2024, compared to $(193) million in Q1 2023, indicating an increase in cash outflow[29] - Cash and cash equivalents decreased to $395 million as of March 31, 2024, from $913 million at December 31, 2023, a decrease of 56.7%[27] - Total assets decreased to $9,409 million as of March 31, 2024, from $9,669 million at December 31, 2023, representing a decline of 2.68%[27] - Total current liabilities increased to $2,602 million as of March 31, 2024, from $2,346 million at December 31, 2023, an increase of 10.9%[27] Inventory and Tax - Inventories increased to $1,210 million as of March 31, 2024, from $1,071 million at December 31, 2023, an increase of 12.97%[27] - The effective tax rate for Q1 2024 was approximately 35%, compared to about 22% in Q1 2023, reflecting a shift in regional earnings mix[7] Future Developments - The first MAGMA greenfield plant is set to start up in summer 2024, which is expected to provide a significant competitive advantage[1]

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D. C. 20549 FORM 10-K (Mark One) ☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended December 31, 2023 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 Commission file number 1-9576 O-I GLASS, INC. (Exact name of registrant as specified in its charter) Delaware (State or other jurisdiction of incorporation or organization) 22-2781933 (IRS Empl ...

Financial Performance - Net sales for Q3 2023 were $1,743 million, an increase of $50 million, or 3%, compared to Q3 2022, driven by higher prices and favorable foreign currency exchange rates [111][116]. - Segment operating profit for reportable segments in Q3 2023 was $301 million, an increase of $35 million, or approximately 13%, compared to Q3 2022, primarily due to higher net prices and margin expansion initiatives [122]. - Net earnings attributable to the Company in Q3 2023 were $51 million, or $0.32 per share, compared to $231 million, or $1.45 per share, in Q3 2022, reflecting a significant decrease [115]. - Net sales for the first nine months of 2023 increased by $301 million, or 6%, to $5,464 million compared to the same period in 2022 [133][139]. - Net earnings attributable to the Company for the third quarter of 2023 were $51 million, or $0.32 per share (diluted), down from $231 million, or $1.45 per share (diluted), in the third quarter of 2022 [132]. - Segment operating profit for reportable segments in the first nine months of 2023 was $1,025 million, an increase of $272 million, or approximately 36%, compared to the same period in 2022 [145]. - The Company recorded earnings before income taxes of $506 million in the first nine months of 2023, a decrease of $270 million from $776 million in the same period of 2022 [143]. - Net earnings attributable to the Company for the first nine months of 2023 were $367 million, or $2.31 per share, down from $571 million, or $3.59 per share, in the same period of 2022 [156]. Sales and Shipments - Glass container shipments declined approximately 15% in Q3 2023, resulting in a decrease in net sales of approximately $271 million compared to the same period in 2022 [116]. - In the Americas, net sales decreased by $39 million, or 4%, to $948 million in Q3 2023, primarily due to lower shipments and significant destocking activity [118]. - In Europe, net sales increased by $86 million, or 13%, to $766 million in Q3 2023, driven by higher selling prices and favorable foreign currency exchange rates [119]. - Glass container shipments declined approximately 11% in the first nine months of 2023, decreasing net sales by approximately $559 million compared to the same period in 2022 [139]. - In Europe, net sales increased by $275 million, or 13%, to $2,428 million in the first nine months of 2023 compared to the same period in 2022 [142]. Costs and Expenses - Earnings before income taxes were $82 million in Q3 2023, a decrease of $196 million compared to Q3 2022, attributed to higher interest expense and restructuring charges [120]. - The Company recorded a net interest expense increase of $15 million in Q3 2023, primarily due to higher interest rates [114]. - Net interest expense for the first nine months of 2023 increased by $88 million compared to the same period in 2022, primarily due to higher interest rates [137]. - The effective tax rate for the third quarter of 2023 was 31.7%, significantly higher than 15.5% in the same quarter of 2022 [131]. - The effective tax rate for the first nine months of 2023 was 25.1%, an increase from 21.1% in the same period of 2022, primarily due to unfavorable tax rates on restructuring charges [153]. Production and Capacity - The Company implemented temporary production curtailments to better match production with customer demand, which will result in higher operating costs for the remainder of 2023 [125]. - The Company plans to temporarily curtail approximately 20% of its global production in Q4 2023 to align inventory levels, which will lead to higher operating costs due to unabsorbed fixed costs [157]. - The Company plans to continue monitoring business trends and may consider further permanent capacity closures to align with demand trends [125]. Cash Flow and Financing - Cash provided by operating activities is expected to range between $800 million and $850 million for 2023, reflecting variability in sales and production volume [157]. - Cash provided by operating activities was $437 million for the nine months ended September 30, 2023, compared to a cash utilization of $224 million in the same period in 2022 [187]. - Working capital was a use of cash of $416 million in the first nine months of 2023, compared to a use of cash of $162 million in the same period in 2022 [188]. - Cash utilized in investing activities was $457 million for the nine months ended September 30, 2023, compared to $108 million of cash provided in the same period in 2022 [189]. - Capital spending for property, plant, and equipment was $465 million during the first nine months of 2023, compared to $346 million in the same period in 2022 [189]. - Cash provided by financing activities was $31 million for the nine months ended September 30, 2023, compared to $54 million of cash utilized in financing activities in the same period in 2022 [192]. - The Company anticipates that cash flows from operations and available credit will be sufficient to fund its operating and seasonal working capital needs, debt service, and other obligations [194]. - The Company has $1.24 billion in unused credit available under its Credit Agreement as of September 30, 2023, with a weighted average interest rate of 6.84% on outstanding borrowings [172]. Strategic Initiatives and Risks - The Company is actively reviewing its remaining businesses in the former Asia Pacific region to explore options for maximizing shareholder value, which may lead to divestitures or corporate transactions [161]. - The ongoing conflict between Russia and Ukraine may impact the Company's operations, particularly regarding energy supply agreements and costs [159]. - The current conflict between Russia and Ukraine has caused significant increases in natural gas prices and price volatility, impacting the Company's European operations [150]. - The Company faces various risks that may impact future financial performance, including geopolitical tensions, supply chain disruptions, and inflationary pressures [199]. - The ongoing Ukraine-Russia and Israel-Hamas conflicts are affecting the cost and availability of raw materials, labor, and transportation [199]. - The Company is evaluating its strategic plan to navigate market uncertainties and achieve growth objectives [199]. - The Company is focused on improving its glass melting technology through the MAGMA program, which is critical for operational efficiency [199]. - There is a risk of unanticipated operational disruptions, including higher capital spending, which could affect financial outcomes [199]. - The Company must manage its cost structure effectively to achieve operational efficiency and working capital management [199]. - Future cash flow generation is essential to ensure that the Company's goodwill remains intact [199]. Compliance and Governance - As of September 30, 2023, the Company was in compliance with all covenants and restrictions in the Credit Agreement [175]. - The Company believes it will remain in compliance with the Credit Agreement for its term [175]. - The Company is subject to increased scrutiny regarding environmental, social, and governance (ESG) factors, which may impact operations [199]. - There have been no material changes in market risk as of September 30, 2023, compared to the previous year [202]. - Forward-looking statements are based on assumptions that may not guarantee future performance, highlighting the need for cautious optimism [201].

UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-Q (Mark one) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended June 30, 2023 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission file number 1-9576 O-I GLASS, INC. (Exact name of registrant as specified in its charter) Delaware 22-2781933 (State or other jurisdiction of (IR ...