Full Year 2022 Results
Earnings from Continuing Operations Earnings Per Share (Diluted) | Earnings from Continuing Operations Before Income Taxes $M | Cash Provided by Continuing Operating Activities $M | ||||||||||
FY22 | FY21 | FY22 | FY21 | FY22 | FY21 | |||||||
Reported | ||||||||||||
Adjusted Earnings Earnings Per Share (Diluted) | Segment Operating Profit $M | Free Cash Flow $M | ||||||||||
FY22 | FY21 | FY22 | FY21 | FY22 | FY21 | |||||||
Non - GAAP1 | (Guidance: $2.20-$2.25) | (Guidance: ≥ |
“We are pleased with O-I’s full-year 2022 performance as earnings improved from the prior year reflecting strong net price realization, continued sales volume growth and favorable operating performance,” said
“O-I is again delivering on its commitments. In addition to exceeding full-year guidance, we also achieved all of our key strategic objectives in 2022. Net price realization and margin expansion initiative benefits exceeded our original target. We made solid progress on our capital expansion program and will add much needed new capacity for growth starting in early 2023. Likewise, we recently broke ground on our first MAGMA greenfield project in
“Reflecting solid business momentum, we expect our performance will continue to improve in 2023 through solid execution and as we further advance our strategy. I am confident our efforts will increase shareholder value and ensure long-term prosperity for O-I,” added Lopez.
Net sales were
Earnings from continuing operations before income taxes were
Segment operating profit was
Americas : Segment operating profit in theAmericas was$472 million compared to$456 million in 2021. Earnings benefited from favorable net price, as higher selling prices more than offset cost inflation. A decline in sales volume (in tons) of one percent was partially offset by improved mix. Operating costs reflected higher maintenance costs due to elevated project activity and unplanned production downtime partially offset by benefits from O-I’s margin expansion initiatives. Results were negatively impacted by$22 million due to divestitures while earnings benefited$6 million from foreign currency translation.Europe : Segment operating profit inEurope was$488 million compared to$371 million in 2021. Earnings benefited from favorable net price as higher selling prices more than offset cost inflation, and from a four percent increase in sales volume (in tons). Operating costs reflected additional expense due to elevated project activity partially offset by benefits from O-I’s margin expansion initiatives and a subsidy received inItaly to help mitigate the impact of elevated energy costs. Results were negatively impacted by$37 million due to unfavorable foreign currency translation and$7 million related to divestitures.
Retained corporate and other costs were
Reported earnings were
Cash provided by continuing operating activities declined to
Total debt was
Fourth Quarter 2022 Results
Earnings (Loss) from Continuing Operations Earnings Per Share (Diluted) | Earnings from Continuing Operations Before Income Taxes $M | |||||||
4Q22 | 4Q21 | 4Q22 | 4Q21 | |||||
Reported | ||||||||
Adjusted Earnings Earnings Per Share (Diluted) | Segment Operating Profit $M | |||||||
4Q22 | 4Q21 | 4Q22 | 4Q21 | |||||
Non - GAAP1 | (Guidance: |
Net sales were
Earnings from continuing operations before income taxes were
Segment operating profit was
Americas : Segment operating profit in theAmericas was$83 million compared to$99 million in the fourth quarter of 2021. Earnings benefited from favorable net price as higher selling prices more than offset cost inflation while sales volumes (in tons) declined six percent. Higher operating costs reflected additional expense due to elevated project activity partially offset by margin expansion initiative benefits. Results were negatively impacted$9 million due to divestitures while earnings benefited$1 million from foreign currency translation.Europe : Segment operating profit inEurope was$123 million compared to$78 million in the fourth quarter of 2021. Earnings benefited from favorable net price as higher selling prices more than offset cost inflation and sales volume (in tons) increased one percent. Operating costs reflected additional expense due to elevated project activity partially offset by margin expansion initiative benefits. Results were negatively impacted by$5 million due to unfavorable foreign currency translation and$2 million related to divestitures.
Retained corporate and other costs were
Reported earnings were
2023 Outlook
Full Year 2023 Guidance | 1Q23 Guidance | |
Sales Volume Growth (in Tons) | Flat to +1% | Down LSD |
Adjusted Earnings Per Share | > | |
Free Cash Flow ($M) | ≥ | n/a |
Capital Expenditures ($M) | ~ | n/a |
“We have good momentum heading into 2023 and expect improved results reflecting strong net price realization despite higher interest expense. Sales volume should be flat or up slightly. New capacity will enable higher shipments, which we expect to be tempered by record low inventory levels and normalization of asset maintenance activity as supply chain issues begin to ease. Operating costs are expected to benefit from continued margin expansion initiatives benefits which should mostly offset higher expense associated with elevated asset project activity. Overall, we anticipate higher earnings and adjusted free cash flow as we continue to improve our balance sheet position,” said Lopez.
“First quarter 2023 adjusted earnings should approximate
O-I’s earnings outlook assumes foreign currency rates as of
Conference Call Scheduled for February 1, 2023
O-I CEO
Contact: Sasha Sekpeh, 567-336-5128 – O-I Investor Relations
O-I news releases are available on the O-I website at www.o-i.com.
O-I’s first 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 from continuing operations 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 from continuing operations 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. Management uses adjusted earnings, adjusted earnings per share, segment operating profit, 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.
Net debt is defined as total debt less cash. Management uses net debt to analyze the liquidity of the company.
Further, free cash flow relates to cash provided by continuing operating activities plus cash payments to 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 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 conflict between
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 or 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
- FY22 & 4Q22 O-I Glass Earnings Release
- FY22 & 4Q22 O-I Glass Earnings Presentation
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For more information, contact:Chris Manuel Vice President of Investor Relations 567-336-2600 Chris.Manuel@o-i.com
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