Net Earnings Attributable to the Company Per Share (Diluted) | Earnings Before Income Taxes $M | |||||||
3Q23 | 3Q22 | 3Q23 | 3Q22 | |||||
Reported | $0.32 | $1.45 | $82 | $278 | ||||
Adjusted Earnings Per Share (Diluted) | Segment Operating Profit $M | |||||||
3Q23 | 3Q22 | 3Q23 | 3Q22 | |||||
Non – GAAP | (Guidance: | $0.63 | $301 | $266 |
“O-I continues to execute well, and third quarter results exceeded our expectations. Business performance improved significantly from the prior year period reflecting favorable net price realization, solid operating results, and benefits from our ongoing margin expansion initiatives, which more than offset the impact of lower-than-expected demand. Importantly, our balance sheet position continued to improve, and we achieved our 2023 target ahead of plan,” said
“Demand for glass containers has temporarily decoupled from consumer consumption patterns primarily due to significant inventory destocking across the value chain. While we are not immune to the dynamics our industry is currently facing, we continue to navigate well through elevated volatility, and we are taking actions in the near term to best position our company for the market recovery that we believe will occur in 2024. This focus aligns with our ongoing efforts to transform the company and create shareholder value,” concluded Lopez.
Third Quarter 2023
Net sales were
Earnings before income taxes were
Segment operating profit was
Americas : Segment operating profit in theAmericas was$116 million compared to$130 million in the third quarter of 2022 and benefited from favorable net price and margin expansion initiatives, which were more than offset by the impact of lower sales volume and elevated operating costs attributed to temporary production curtailments to balance supply with lower demand. Segment operating profit also benefited$9 million from favorable foreign currency translation.Europe : Segment operating profit inEurope was$185 million compared to$136 million in the third quarter of 2022 and reflected favorable net price and solid operating performance, which were partially offset by lower sales volume and higher operating costs largely due to the headwind from Italian energy credits received in the prior year that did not repeat in 2023. Segment operating profit also benefited$10 million from favorable foreign currency translation.
Retained corporate and other costs were
Net earnings attributable to the company were
Adjusted earnings were
2023 Outlook
Year-to-date adjusted earnings have already exceeded full year 2022 and the company expects 2023 adjusted earnings will approximate
The company’s current full year and fourth quarter 2023 outlook has been adjusted from the guidance provided on
ACTUAL | GUIDANCE | ||||||||
4Q23 | FY23 | ||||||||
YTD 23 | CURRENT | Prior | CURRENT | Prior | |||||
Sales Volume Growth (in Tons) | ▼ 11% | ▼ DD | ▼ LSD/MSD | ▼ DD | ▼ MSD/HSD | ||||
Reported Earnings Per Share (diluted) | $2.31 | n/a | n/a | n/a | n/a | ||||
Adjusted Earnings Per Share (EPS) | $2.97 | $0.03 | ~ | ||||||
Free Cash Flow ($M) | n/a | n/a | n/a | ~ ~ | |||||
Capital Expenditures($M) | n/a | n/a | n/a | ~ |
Guidance primarily reflects the company’s current view on sales and production volume, mix and working capital trends as the company concludes 2023. O-I’s adjusted earnings outlook assumes foreign currency rates as of
Conference Call Scheduled for
O-I CEO
Contact:
O-I news releases are available on the O-I website at www.o-i.com.
O-I’s year end and fourth quarter 2023 earnings conference call is currently scheduled for
About
At
Non-GAAP Financial Measures
The company uses certain non-GAAP financial measures, which are measures of its historical or future financial performance that are not calculated and presented in accordance with GAAP, within the meaning of applicable
Adjusted earnings relates to net earnings attributable to the company, exclusive of items management considers not representative of ongoing operations and other adjustments because such items are not reflective of the company’s principal business activity, which is glass container production. Adjusted earnings are divided by weighted average shares outstanding (diluted) to derive adjusted earnings per share. Segment operating profit relates to earnings before interest expense, net, and before income taxes and is also exclusive of items management considers not representative of ongoing operations as well as certain retained corporate costs and other adjustments. Segment operating profit margin is calculated as segment operating profit divided by segment revenue. Adjusted effective tax rate relates to the provision for income taxes, excluding tax items management considers not representative of ongoing operations and other adjustments, divided by earnings before income taxes, exclusive of items management considers not representative of ongoing operations and other adjustments. Management uses adjusted earnings, adjusted earnings per share, segment operating profit, segment operating profit margin and adjusted effective tax rate to evaluate its period-over-period operating performance because it believes these provide useful supplemental measures of the results of operations of its principal business activity by excluding items that are not reflective of such operations. The above non-GAAP financial measures may be useful to investors in evaluating the underlying operating performance of the company’s business as these measures eliminate items that are not reflective of its principal business activity.
Further, free cash flow relates to cash provided by operating activities plus cash payments to fund the Paddock 524(g) trust and related expenses less cash payments for property, plant, and equipment. Adjusted free cash flow relates to cash provided by operating activities plus cash payments to fund the Paddock 524(g) trust and related expenses less cash payments for property, plant and equipment plus cash payments for property, plant and equipment related to strategic or expansion projects. Management has historically used free cash flow and adjusted free cash flow to evaluate its period-over-period cash generation performance because it believes these have provided useful supplemental measures related to its principal business activity. It should not be inferred that the entire free cash flow or adjusted free cash flow amount is available for discretionary expenditures, since the company has mandatory debt service requirements and other non-discretionary expenditures that are not deducted from these measures. Management uses non-GAAP information principally for internal reporting, forecasting, budgeting and calculating compensation payments.
The company routinely posts important information on its website – www.o-i.com/investors.
Forward-Looking Statements
This press release contains “forward-looking” statements related to
It is possible that the company’s future financial performance may differ from expectations due to a variety of factors including, but not limited to the following: (1) the general political, economic and competitive conditions in markets and countries where the company has operations, including uncertainties related to economic and social conditions, disruptions in the supply chain, competitive pricing pressures, inflation or deflation, changes in tax rates and laws, war, civil disturbance or acts of terrorism, natural disasters, and weather, (2) cost and availability of raw materials, labor, energy and transportation (including impacts related to the current
It is not possible to foresee or identify all such factors. Any forward-looking statements in this document are based on certain assumptions and analyses made by the company in light of its experience and perception of historical trends, current conditions, expected future developments, and other factors it believes are appropriate in the circumstances. Forward-looking statements are not a guarantee of future performance and actual results or developments may differ materially from expectations. While the company continually reviews trends and uncertainties affecting the company’s results of operations and financial condition, the company does not assume any obligation to update or supplement any particular forward-looking statements contained in this document.
Attachments
- 3Q 2023 O-I Glass Earnings Presentation
- 3Q 2023 O-I Glass Earnings Release
For more information, contact:Chris Manuel Vice President of Investor Relations 567-336-2600 Chris.Manuel@o-i.com
Source:
2023 GlobeNewswire, Inc., source