O-I Glass, Inc. has reported financial results for the second quarter ended June 30, 2023.
“We are pleased to report strong second quarter performance, which exceeded guidance, as O-I continued to execute well amid more challenging macro conditions,” said Andres Lopez, O-I Glass CEO. “Business performance improved significantly from the prior year reflecting favourable net price realization, solid operating results and benefits from our ongoing margin expansion initiatives which more than offset the impact of softer demand. We continue to expect 2023 adjusted earnings will significantly exceed the prior year given strong execution and operating performance.”
Net sales were USD 1.9 billion in the second quarter of 2023, up compared to USD 1.8 billion in the prior year period primarily due to higher average selling prices as well as favourable foreign currency translation, partially offset by lower shipment levels. Sales volume (in tonnes) was down 9 percent from the prior year compared to O-I’s most recent guidance of a mid-to-high single digit decline and was primarily attributed to softer consumer consumption activity and inventory de-stocking across the value chain.
Earnings before income taxes were USD 154 million in the second quarter of 2023 compared to USD 328 million in the prior year, down 53 percent. Results reflected higher segment operating profit which was more than offset by items management considers not representative of ongoing operations, including refinancing charges this year and a one-time gain on a sale leaseback transaction in the prior year period, as well as higher interest expense.
The full report is available here.