In This Article:
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Full Year Adjusted Earnings: $0.81 per share, slightly exceeding guidance but down from 2023.
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Fourth Quarter Adjusted Loss: $0.05 per share, compared to $0.12 earnings in the same period last year.
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Net Sales: Declined due to a 2% decrease in selling prices and 4% lower sales volume.
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Free Cash Flow: $128 million use of cash, slightly favorable to guidance due to good working capital management.
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Leverage Ratio: Increased to 3.9 times due to lower adjusted EBITDA.
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Segment Operating Profit - Americas: $96 million, up from $93 million in Q4 2023.
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Segment Operating Profit - Europe: $40 million, down from $75 million in Q4 2023.
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2025 Adjusted EPS Guidance: Expected to be $120 million to $150 million, a 50% to 85% increase from 2024.
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2025 Free Cash Flow Guidance: Expected between $150 million and $200 million.
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2025 Adjusted EBITDA Guidance: $1.15 billion to $1.2 billion, up from $1.1 billion in 2024.
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Inventory Reduction: Reduced by $108 million in 2024, with further reductions expected in 2025.
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Cost Savings Target for 2025: Increased to between $175 million and $200 million.
Release Date: February 05, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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O-I Glass Inc (NYSE:OI) exceeded its most recent guidance with full-year adjusted earnings of $0.81 per share.
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The company expects a significant improvement in 2025, with adjusted EPS projected to increase by 50% to 85%.
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O-I Glass Inc (NYSE:OI) is implementing its 'Fit to Win' program, which is expected to generate over $300 million in savings over the next three years.
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The company has seen stabilization in demand and better-than-anticipated operating performance in the fourth quarter of 2024.
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O-I Glass Inc (NYSE:OI) anticipates free cash flow to rebound to between $150 million and $200 million in 2025, a substantial improvement from the previous year.
Negative Points
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2024 was a challenging year for O-I Glass Inc (NYSE:OI) due to sluggish market demand and macroeconomic conditions.
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The company reported an adjusted loss of $0.05 per share in the fourth quarter, down from adjusted earnings of $0.12 per share in the same period last year.
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Net sales declined due to a 2% decrease in selling prices and a 4% drop in sales volume.
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Higher interest expenses and tax rates negatively impacted full-year EPS.
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The leverage ratio increased to 3.9 times due to lower adjusted EBITDA.
Q & A Highlights
Q: Can you expand on the signs of volume stability and the impact of alcohol on your portfolio? A: Gordon Hardie, CEO: Alcohol constitutes about 75% of our portfolio. We see volume growth in the Americas, particularly in Brazil, Mexico, and Colombia, with early signs of growth in North America. However, Europe is experiencing a 5% decline in sales due to soft consumer demand and reduced exports to China.