O-I Glass(US:OI)2022-08-03 15:45Financial Performance & Strategic Achievements - O-I Glass's Q2 2022 adjusted earnings per share (aEPS) reached $0.73, exceeding both the prior year's $0.54 and the guidance of >$0.65 [5] - Net sales increased by 7% year-over-year (14% on a currency-neutral basis), with sales volume growth of 0.6% [6] - Segment operating profit increased by 11%, leading to a 0.6% improvement in segment operating margin and a 35% increase in aEPS [6] - Total financial leverage reduced by 1.1x, reaching the lowest level since before the O-I Mexico acquisition in 2015 [5, 6] Guidance & Outlook - Full year 2022 business outlook increased, with updated guidance of $2.05 - $2.20 aEPS, $175 million+ free cash flow (FCF), and $400 million+ adjusted free cash flow (aFCF) [6] - FY22 Free cash flow is expected to be greater than or equal to $175 million and adjusted free cash flow is expected to be greater than or equal to $400 million, assuming approximately $600 million in capital expenditures [32] Capital Allocation & Portfolio Optimization - The company expects to complete its $1.5 billion portfolio optimization program in the second half of 2022 [16] - Revised capital expansion plan for 2022-2024 anticipates up to $630 million in expansion CapEx with a portfolio IRR of approximately 20% [17] MAGMA Program - Announced the first U S MAGMA greenfield project in Bowling Green, KY, targeting first shipments by mid-2024 [5] - Accelerating MAGMA Generation 2 and 3 development and commercialization [17]