O-I Glass(OI) - 2024 Q4 - Annual Results

Financial Performance - Net sales for 2024 were $6.5 billion, a decrease of approximately 8 percent compared to$7.1 billion in 2023[4] - Adjusted earnings per share (diluted) for 2024 were $0.81, down from$3.09 in 2023, slightly exceeding management's guidance of $0.70 to$0.80[8] - Segment operating profit was $748 million in 2024, down from$1,193 million in 2023, reflecting lower net prices and increased operating costs[6] - The company reported a net loss attributable to the company of $0.69 per share in 2024, compared to a net loss of$0.67 per share in 2023[7] - Net sales for the year ended December 31, 2024, were $6,404 million, a decrease of 8.3$6,982 million in 2023[38] - Adjusted earnings (loss) for the year ended December 31, 2024, were $(8) million, compared to$491 million in 2023[43] Cash Flow and Assets - Free cash flow was a use of $128 million in 2024, compared to a source of$130 million in the prior year, slightly better than the guidance range of a use of $130 million to$170 million[9] - Cash provided by operating activities was $489 million in 2024, down from$818 million in 2023[8] - Cash provided by operating activities for the year ended December 31, 2024, was $489 million, down from$818 million in 2023[47] - Cash and cash equivalents at the end of Q4 2024 were $734 million, down from$913 million at the end of Q4 2023[33] - Total assets decreased to $8,654 million in 2024 from$9,669 million in 2023, a reduction of 10.5%[33] Segment Performance - Segment operating profit in the Americas was $392 million in 2024, down from$511 million in the prior year, impacted by lower net prices and increased operating costs[9] - Segment operating profit in Europe was $356 million in 2024, compared to$682 million in the prior year, primarily due to lower net prices and increased operating costs[9] - Segment operating profit for the Americas in 2024 was $392 million, down 23.3$1,529 million, a decrease of 6.8% from $1,641 million in Q4 2023[31] - Gross profit for Q4 2024 was$208 million, down from $231 million in Q4 2023, representing a decline of 9.9$155 million, compared to a net loss of $470 million in Q4 2023[31] - The Company reported a cash provided by operating activities of$318 million for Q4 2024, compared to $381 million in Q4 2023[35] - Research, development, and engineering expenses for Q4 2024 were$18 million, down from $26 million in Q4 2023[31] - The Company incurred interest expenses of$83 million in Q4 2024, slightly up from $79 million in Q4 2023[31] - The Company’s equity earnings decreased significantly to$4 million in Q4 2024 from $27 million in Q4 2023[31] Future Outlook - The company anticipates adjusted EPS for 2025 to be in the range of$1.20 to $1.50, representing a 50 to 85 percent increase from 2024 levels[15] - Free cash flow for 2025 is expected to be between$150 million and $200 million, a significant improvement from the$128 million use of cash in 2024[16] Risks and Challenges - The Company is facing various risks including supply chain disruptions and competitive pressures, which may impact future performance[27] - Total debt as of December 31, 2024, was $4,969 million, an increase from$4,946 million in 2023[49] - The ratio of earnings before income taxes to net sales for the year ended December 31, 2024, was 0.6%, a slight decrease from 0.9% in 2023[38] - The company experienced a total reconciling item impact of $(116) million on net sales for the three months ended December 31, 2024[41]