FOR IMMEDIATE RELEASE
O-I Glass, Inc. (NYSE: OI) today provided a
business update for the second quarter of 2022 in advance of
participation in an investor conference.
“The second quarter is progressing very well,
and we now expect adjusted earnings will exceed our previous
guidance range. Glass container shipments (in tons) are up
approximately one percent quarter-to-date through May, which is
consistent with our expectations of low, single digit growth.
Stronger results reflect more favorable operating performance and
higher net price. As a result, we anticipate second quarter 2022
adjusted earnings1 will exceed $0.65 per share, which compares to
our most recent guidance range of $0.55 – $0.60 per share,” said
Andres Lopez, O-I Glass CEO.
Currently, the company is not updating its full
year 2022 business outlook, but consistent with typical practices,
management will evaluate this outlook when reporting second quarter
2022 results on August 3.
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,
healthy 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 approximately 24,000 people across
70 plants in 19 countries, O-I achieved net sales of $6.4
billion in 2021. Recognizing the tremendous benefits of glass, the
United Nations has designated 2022 as the International Year of
Glass to celebrate the past, present, and future of this
transformative material. Learn more about
us: o-i.com / Facebook / Twitter / Instagram / LinkedIn
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 SEC rules. Management
believes that its presentation and use of certain non-GAAP
financial measures, including adjusted earnings and adjusted
earnings per share, provide relevant and useful supplemental
financial information that is widely used by analysts and
investors, as well as by management in assessing both consolidated
and business unit performance.
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.
Management uses adjusted earnings and adjusted earnings per share
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. Adjusted earnings and
adjusted earnings per share 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.
The Company is unable to present a quantitative
reconciliation of its forward-looking non-GAAP measures, adjusted
earnings and adjusted earnings per share, for the quarter ending
June 30, 2022 to its most directly comparable GAAP financial
measure, earnings from operations attributable to the Company,
because management cannot reliably predict all of the necessary
components of the GAAP financial measures without unreasonable
efforts. Earnings from 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
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.
Forward-Looking-Statements This press release
contains “forward-looking” statements related to O-I Glass, Inc.
(the “company”) within the meaning of Section 21E of the Securities
Exchange Act of 1934, as amended, and Section 27A of the Securities
Act of 1933, as amended. Forward-looking statements reflect the
company’s current expectations and projections about future events
at the time and involve uncertainty and risk. The words “expect,”
“believe,” “will,” “could,” “would,” “plan,” “potential,” 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
risk that confirmation of the proposed plan of reorganization (the
"Plan") of Paddock Enterprises, LLC (“Paddock”) may not be affirmed
by the district court or that other conditions necessary to
implement the agreement in principle may not be satisfied, (2) the
actions and decisions of participants in the bankruptcy proceeding,
and the actions and decisions of third parties, including
regulators, that may have an interest in the bankruptcy
proceedings, (3) delays in the affirmance or consummation of the
Plan, due to factors beyond the company’s and Paddock’s control,
(4) risks with respect to the receipt of the consents necessary to
effect the reorganization, (5) risks inherent in, and potentially
adverse developments related to, the bankruptcy proceeding, that
could adversely affect the company’s liquidity or results of
operations, (6) the impact of the COVID-19 pandemic and the various
governmental, industry and consumer actions related thereto, (7)
the company’s ability to obtain the benefits it anticipates from
the corporate modernization, (8) 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, (9) 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, (10) the company’s
ability to achieve its strategic plan, (11) the company’s ability
to improve its glass melting technology, known as the MAGMA program
and implement it within the timeframe expected, (12) foreign
currency fluctuations relative to the U.S. dollar, (13) changes in
capital availability or cost, including interest rate fluctuations
and the ability of the company to refinance debt on favorable
terms, (14) 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, (15) the company’s ability to generate sufficient future
cash flows to ensure the company’s goodwill is not impaired, (16)
consumer preferences for alternative forms of packaging, (17) cost
and availability of raw materials, labor, energy and transportation
(including impacts related to the current conflict between Russia
and Ukraine), (18) consolidation among competitors and customers,
(19) unanticipated expenditures with respect to data privacy,
environmental, safety and health laws, (20) unanticipated
operational disruptions, including higher capital spending, (21)
the company’s ability to further develop its sales, marketing and
product development capabilities, (22) the failure of the company’s
joint venture partners to meet their obligations or commit
additional capital to the joint venture, (23) 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, (24) changes in U.S.
trade policies, (25) risks related to recycling and recycled
content laws and regulations, (26) risks related to climate-change
and air emissions, including related laws or regulations and the
other risk factors discussed in the company’s Annual Report on Form
10-K for the year ended December 31, 2021 and 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 measures, adjusted earnings and
adjusted earnings per share, for the quarter ending June 30, 2022,
year ending December 31, 2022 and all periods after, to its most
directly comparable GAAP financial measure, earnings from
operations attributable to the Company, because management cannot
reliably predict all of the necessary components of the GAAP
financial measures without unreasonable efforts. Earnings from
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 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.
- 2Q22 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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