FOR IMMEDIATE RELEASE
O-I Glass, Inc. (NYSE: OI) today provided a
business update in advance of management’s participation in the
R.W. Baird 2021 Sustainability Conference on Wednesday February 24,
2021.
“The severe weather conditions that swept across
the southern United States in recent weeks significantly impacted a
number of our operations. Access to natural gas and electricity was
curtailed which are key inputs for our business. As a result, the
company temporarily idled eight facilities across Texas, Oklahoma
and Mexico. While the situation was most acute in Texas, Mexico was
also significantly impacted as Texas supplies natural gas to the
country. In response, the O-I team took swift and proactive
measures to preserve our asset base and minimize the impact of this
unexpected situation. Understanding the situation remains very
fluid, the company currently anticipates lower shipment and
production levels as well as higher energy and transportation costs
in these markets compared to original expectations for the first
quarter of 2021,” said Andres Lopez, O-I Glass CEO.
“On an encouraging note, conditions are
beginning to normalize, and we are working to quickly ramp up
production at the affected plants. Excluding the impact of the
severe weather, global shipments in February have been in-line with
the prior year, despite continued pandemic related lockdowns in a
few markets. This represents an improvement in demand trends from
January which was impacted by supply chain adjustments. Likewise,
very good operating conditions continue across our operations.”
“Prior to this event, our business performance
was trending above our most recent first quarter 2021 guidance
which reflected improving demand trends and solid operating
performance. Considering this situation, management now expects
first quarter global shipments (in tons) will be down slightly from
2020 levels and adjusted earnings1 will be below our previous
guidance range of $0.32 to $0.37 per share. The company has not
changed its full year business outlook at this stage and will
continue to update the market as we gain greater clarity and events
unfold,” concluded Lopez.
About O-I Glass
At O-I Glass, Inc. (NYSE: OI), we love glass and
we’re proud to be one of the leading producers of glass bottles and
jars around the globe. Glass is not only
beautiful, it’s also pure and completely recyclable,
making it the most sustainable rigid packaging material.
Headquartered in Perrysburg, Ohio (USA), O-I is the preferred
partner for many of the world’s leading food and beverage brands.
We innovate in line with customers’ needs to create iconic
packaging that builds brands around the world. Led by our diverse
team of more than 25,000 people across 72 plants in
20 countries, O-I achieved revenues of $6.1 billion in
2020. Learn more about us:
o-i.com / Facebook / Twitter / Instagram / LinkedIn
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 O-I Glass, Inc. (“O-I Glass” or the
“company”) within the meaning of Section 21E of the Securities
Exchange Act of 1934, as amended (the “Exchange Act”) and Section
27A of the Securities Act of 1933. Forward-looking statements
reflect the company’s current expectations and projections about
future events at the time, and thus involve uncertainty and risk.
The words “believe,” “expect,” “anticipate,” “will,” “could,”
“would,” “should,” “may,” “plan,” “estimate,” “intend,” “predict,”
“potential,” “continue,” and the negatives of these words and other
similar expressions generally identify forward-looking
statements.
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
impact of the COVID-19 pandemic and the various governmental,
industry and consumer actions related thereto, (2) the company’s
ability to obtain the benefits it anticipates from the Corporate
Modernization, (3) risks inherent in, and potentially adverse
developments related to, the Chapter 11 bankruptcy proceeding
involving the company’s wholly owned subsidiary Paddock Enterprise,
LLC (“Paddock”), that could adversely affect the company and the
company’s liquidity or results of operations, including the impact
of deconsolidating Paddock from the company’s financials, risks
from asbestos-related claimant representatives asserting claims
against the company and potential for litigation and payment
demands against the company by such representatives and other third
parties, (4) the amount that will be necessary to fully and finally
resolve all of Paddock’s asbestos-related claims and the company’s
obligations to make payments to resolve such claims under the terms
of its support agreement with Paddock, (5) the company’s ability to
manage its cost structure, including its success in implementing
restructuring or other plans aimed at improving the company’s
operating efficiency and working capital management, achieving cost
savings, and remaining well-positioned to address Paddock’s legacy
liabilities, (6) the company’s ability to acquire or divest
businesses, acquire and expand plants, integrate operations of
acquired businesses and achieve expected benefits from
acquisitions, divestitures or expansions, (7) the company’s ability
to achieve its strategic plan, (8) the company’s ability to improve
its glass melting technology, known as the MAGMA program, (9)
foreign currency fluctuations relative to the U.S. dollar, (10)
changes in capital availability or cost, including interest rate
fluctuations and the ability of the company to refinance debt on
favorable terms, (11) the general political, economic and
competitive conditions in markets and countries where the company
has operations, including uncertainties related to Brexit, economic
and social conditions, disruptions in the supply chain, competitive
pricing pressures, inflation or deflation, changes in tax rates and
laws, natural disasters, and weather, (12) the company’s ability to
generate sufficient future cash flows to ensure the company’s
goodwill is not impaired, (13) consumer preferences for alternative
forms of packaging, (14) cost and availability of raw materials,
labor, energy and transportation, (15) consolidation among
competitors and customers, (16) unanticipated expenditures with
respect to data privacy, environmental, safety and health laws,
(17) unanticipated operational disruptions, including higher
capital spending, (18) the company’s ability to further develop its
sales, marketing and product development capabilities, (19) the
failure of the company’s joint venture partners to meet their
obligations or commit additional capital to the joint venture, (20)
the ability of the company and the third parties on which it relies
for information technology system support to prevent and detect
security breaches related to cybersecurity and data privacy, (21)
changes in U.S. trade policies, and the other risk factors
discussed in the company’s Annual Report on Form 10-K for the year
ended December 31, 2020 and any subsequently filed Annual Report on
Form 10-K, Quarterly Reports on Form 10-Q or the company’s other
filings with the Securities and Exchange Commission.
1 The company is unable to present a quantitative reconciliation
of its forward-looking non-GAAP measure, adjusted earnings per
share for the quarter ending March 31, 2021, to its most directly
comparable GAAP financial measure, earnings from continuing
operations attributable to the company, because management cannot
reliably predict all of the necessary components of this GAAP
financial measure without unreasonable efforts. Earnings from
continuing operations attributable to the company includes several
significant items, such as restructuring charges, asset impairment
charges, charges for the write-off of finance fees, and the income
tax effect on such items. The decisions and events that
typically lead to the recognition of these and other similar items
are complex and inherently unpredictable, and the amount recognized
for each item can vary significantly. Accordingly, the
company is unable to provide a reconciliation of adjusted earnings
and adjusted earnings per share to earnings from continuing
operations attributable to the company or address the probable
significance of the unavailable information, which could be
material to the company's future financial results.
- 1Q21 Capital Markets Presentation
- O-I Glass Business Update
For more information, contact:
Chris Manuel, Vice President of Investor Relations,
567-336-2600,
Chris.Manuel@o-i.com
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