O-I Glass reported financial results for the third quarter ended September 30, 2024.
Highlights
- Rapidly implementing Fit to Win priorities to drive improved performance in 2025 and beyond
- Business returned to modest sales volume growth, despite sluggish market conditions
- Updating 2024 business outlook amid continued muted demand and consumer uncertainty
“Our third-quarter results declined when compared to the strong performance in the prior year period,” said Gordon Hardie, CEO of O-I Glass. “Lower earnings primarily reflected significant production curtailment as we took decisive action to reduce high inventory levels after several quarters of sluggish demand. Net price was also down which was partially offset by modestly higher shipment levels.
“We are aggressively implementing our initial Fit to Win priorities. Along with reducing inventories, we are rebalancing our network to eliminate unprofitable and redundant capacity as well as executing the first phase of our SG&A reduction program.
“We do not believe our 2024 performance is reflective of what the business can deliver. We are determined to improve results in 2025 and beyond, as we drive the improvement measures in our Fit to Win program.”
Net sales were USD 1.7 billion in the third quarter of 2024, down USD 64 million from the prior year period reflecting a 2 percent increase in sales volume (in tonnes), offset by a 4 percent decrease in average selling prices, and unfavourable foreign currency translation.
The company reported a loss before income taxes of USD 57 million in the third quarter of 2024, compared to earnings before income taxes of USD 82 million in the prior year period. This decrease was primarily due to lower segment operating profit and higher interest expense. These headwinds were partially offset by lower retained corporate and other costs.
Segment operating profit was USD 144 million in the third quarter of 2024, compared to USD 301 million in the same period of 2023.
The full report is available here.