O-I Glass, Inc. reported financial results for the first quarter ended March 31, 2022.
“O-I reported strong first quarter results that significantly exceeded guidance and demonstrated our agility to navigate elevated market uncertainty and volatility. Shipments increased 6.4 percent compared to the prior year period and strengthened over the course of the quarter. Operating and cost performance surpassed our expectations as improved manufacturing speed and efficiency increased production to support robust demand amid record low inventory levels. Likewise, the benefit of higher selling prices more than offset elevated cost inflation,” said Andres Lopez, O-I Glass CEO.
Reported Earnings: For the first quarter 2022, net earnings attributable to the Company were USD 0.55 per share (diluted) compared to a loss of USD 0.62 per share in the first quarter of 2021. First quarter 2022 earnings before income taxes were USD 170 million, compared to a loss of USD 65 million in the prior year quarter. Both periods included items management considers not representative of ongoing operations and other adjustments.
Adjusted Earnings: Excluding certain items management considers not representative of ongoing operations and other adjustments, adjusted earningsP0F were USD 0.56 per share in the first quarter of 2022, compared with USD 0.35 per share in the first quarter of 2021. Adjusted earnings exceeded the company’s most recent business outlook of USD 0.38 to USD 0.43 per share.
Segment Operating Profit: Segment operating profit was USD 231 million compared to USD 175 million in the prior year quarter. Segment operating profit benefited from 6.4 percent higher sales volume and 3.7 percent higher production volume (in tons). Likewise, higher segment operating profit also reflected favourable net price, continued solid operating performance and benefits from O-I’s ongoing Margin Expansion initiatives. These benefits were slightly offset by higher logistics costs.
“We continue to advance O-I’s business transformation. The company’s ongoing Margin Expansion initiatives are off to a good start and on pace to achieve O-I’s target of USD 50 million in benefits this year. Our MAGMA development efforts and expansion plans to enable profitable growth are evolving amid ongoing supply chain challenges while our Colombia and Canada projects remain on track to add much needed new capacity in early 2023. On the ESG front, more than 30 percent of our electricity use is now supplied from renewable sources and our Glass Advocacy campaign scored over 500 million digital impressions in the first quarter alone. As part of our Portfolio Optimization program, we have completed or entered into sales agreements totalling USD 1.3 billion including the recently completed Colombian tableware business sale. Importantly, Paddock’s plan of reorganization has been accepted by voting asbestos claimants in percentages and amounts that exceed the requirements of the Bankruptcy Code. The plan is currently pending approval by the Bankruptcy Court, and, as a result, we remain optimistic that ultimate resolution of Paddock’s legacy asbestos liabilities will occur by mid-year 2022. On a related note, we recently refinanced our USD 2.8 billion Bank Credit Agreement at attractive terms that includes a delay-draw feature to fund the future Paddock trust created under section 524(g) of the Bankruptcy Code,” continued Lopez.