O-I Glass(US:OI)2021-04-30 20:32Financial Performance - Net sales for Q1 2021 were $1,500 million, a decrease of $61 million, or approximately 4%, compared to Q1 2020, primarily due to the sale of the ANZ businesses and the impact of COVID-19 [118]. - Segment operating profit for reportable segments in Q1 2021 was $175 million, down $1 million, or less than 1%, from $176 million in Q1 2020, largely due to the sale of the ANZ businesses and COVID-19 impacts [124]. - Loss before income taxes was $65 million in Q1 2021, compared to earnings of $81 million in Q1 2020, a decrease of $146 million, primarily due to a $154 million charge related to the Paddock support agreement liability [122]. - Net earnings attributable to the Company in Q1 2021 were a loss of $97 million, or $0.62 per share, compared to net earnings of $50 million, or $0.32 per share, in Q1 2020 [117]. - The company recorded a net loss of $97 million, or $0.62 per share, in Q1 2021, compared to net earnings of $50 million, or $0.32 per share, in Q1 2020, influenced by a $154 million charge related to the Paddock support agreement [132]. Sales by Region - Net sales in Europe for Q1 2021 were $639 million, an increase of $63 million, or nearly 11%, compared to $576 million in Q1 2020, despite COVID-19 lockdowns [120]. - Net sales in the Americas for Q1 2021 were $837 million, an increase of $6 million, or approximately 1%, compared to $831 million in Q1 2020 [119]. - Net sales in Asia Pacific for Q1 2021 were $0, a decrease of $123 million, due to the sale of the ANZ businesses [121]. Operational Metrics - Total glass container shipments in Q1 2021 were down approximately 8%, or about $127 million, compared to the prior year quarter, driven by the sale of the ANZ businesses and the plant in Argentina [118]. - Segment operating profit in Europe increased to $75 million in Q1 2021, up 23% from $61 million in Q1 2020, driven by higher shipments and foreign currency exchange benefits [128]. - The Americas segment experienced a negative impact of approximately $40 million in operating profit due to severe weather in Q1 2021, including $20 million for energy surcharges [127]. - Asia Pacific segment reported an operating profit of $0 in Q1 2021, down from $12 million in Q1 2020, primarily due to the sale of ANZ businesses [129]. Cash Flow and Capital Expenditures - Cash provided by operating activities is projected to be approximately $615 million or higher in 2021, assuming the suspension of asbestos-related claims payments [134]. - Capital expenditures for 2021 are expected to be around $375 million [134]. - Cash utilized by operating activities was $56 million for Q1 2021, a decrease from $315 million in Q1 2020, primarily due to lower working capital usage [159]. - Working capital usage was $229 million in Q1 2021, down from $461 million in Q1 2020, attributed to lower accounts receivable and inventory levels [160]. - Cash utilized by investing activities was $31 million in Q1 2021, compared to $165 million in Q1 2020, with capital spending on property, plant, and equipment at $93 million in Q1 2021 [162]. - Cash provided by financing activities was $288 million in Q1 2021, down from $849 million in Q1 2020, mainly due to lower net borrowings [165]. Dividends and Financial Strategy - The Company suspended its dividend payments after Q1 2020 and has no plans to reinstate them at this time [166]. - The Company anticipates sufficient cash flows from operations and available credit to meet short-term and long-term obligations, despite uncertainties related to the COVID-19 pandemic [167]. - The Company is actively managing its business to maintain cash flow and has significant liquidity to meet anticipated funding requirements [167]. - The company has completed approximately 75% of its divestiture program, using proceeds to reduce debt and enhance financial flexibility [134]. - The Company completed the sale of its ANZ businesses for proceeds of $58 million received in Q1 2021 [163].