O-I Glass(OI)2024-04-30 20:30Financial 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]