Exhibit 99.1
FOR IMMEDIATE RELEASE
For more information, contact:
Chris Manuel
Vice President of Investor Relations
567-336-2600
Chris.Manuel@o-i.com
O-I GLASS REPORTS FIRST QUARTER 2021 RESULTS
Performance was consistent with original guidance
despite significant impact of severe weather
PERRYSBURG, Ohio (April 28, 2021) –
O-I Glass, Inc. (“O-I”) (NYSE: OI) today reported financial results for the first quarter ended March 31, 2021.
“O-I’s first quarter business performance
was strong and consistent with our original guidance. This was accomplished despite the significant impact of severe weather that disrupted
operations in Texas, Oklahoma and Mexico. Aside from this temporary event, business trends were favorable. Excluding the effect of recent
divestitures, sales volume was consistent with last year despite the impact of severe weather and COVID-19 related restrictions. Favorable
trends accelerated as the quarter progressed. Furthermore, continued strong operating performance and the company’s margin enhancement
initiatives offset the impact of severe weather. First quarter cash flow trends were favorable considering typical business seasonality
reflecting our continued focus on working capital management,” said Andres Lopez, CEO.
“We continue to take bold actions to improve
O-I’s business fundamentals. Following a very successful startup, our first full-scale commercial MAGMA production line is now operational
and the team is conducting the necessary tests to validate this revolutionary technology. In addition, we recently announced a $75 million
investment to further expand a facility in the Andean market where demand for glass containers exceeds current capacity. Also, as part
of its margin enhancement initiatives, O-I has formed a strategic partnership with Accenture to manage its global shared service center
activity that is expected to increase capability, improve agility and reduce future SG&A costs. Finally, as announced on Monday, our
Paddock Enterprises, LLC subsidiary reached an agreement in principle to accept the terms of a mediator’s proposal regarding a consensual
plan of reorganization under the Bankruptcy Code. The agreement provides for total consideration of $610 million to fund a trust on the
effective date of a plan of reorganization, subject to definitive documentation and satisfaction of certain conditions. This represents
a major milestone as we seek a fair and final resolution to legacy asbestos-related liabilities. All of these actions are consistent with
our strategy to increase shareholder value.”
“I believe the company is at an important
inflection point as we advance our bold plan to change O-I’s business fundamentals. Reflecting our efforts to increase stability
and agility, we have demonstrated a step change in our resilience as well as ability to consistently perform and deliver on our commitments.
At the same time, we are removing the constraints of the past including legacy asbestos liabilities while moving forward with breakthrough
innovations like MAGMA. We expect these and other key strategic actions will usher in a new period of prosperity for O-I,” concluded
Lopez.
First Quarter 2021 Results
· Reported
Results: For the first quarter 2021, the company recorded a loss of $0.62 per share compared to earnings of $0.32 per share (diluted)
in the prior year. The current year loss before income taxes was $65 million, compared to earnings before income taxes of $81 million
in the first quarter of 2020. Both periods include items management considers not representative of ongoing operations. In the first
quarter of 2021, this included a $154 million adjustment to the company’s Paddock support agreement liability primarily to reflect
the subsidiary’s agreement in principle for a consensual plan of reorganization.
| · | Adjusted Earnings1: Excluding
certain items management considers not representative of ongoing operations, first quarter 2021 adjusted earnings1 were $0.35
per share compared with the prior year of $0.41 per share. Lower earnings primarily reflected recent divestitures. Current results were
within management’s earnings guidance of $0.32 to $0.37. |
| · | Segment Operating Profit1: First
quarter 2021 segment operating profit was $175 million compared to $176 million in the prior year period. These results were in-line with
the prior year period despite the July 2020 divestiture of the company’s Australia and New Zealand (“ANZ”) business,
which contributed $12 million of segment operating profit in the first quarter of 2020. Sales volume was stable with prior year levels
on a comparable basis, excluding the impact from recent divestitures. Continued strong operating performance and the benefit of margin
enhancement initiatives offset the significant impact of severe weather. |
· Cash
Flows: Cash utilized by operating activities was $56 million in first quarter 2021, compared to a $315 million use of cash in 2020.
First quarter 2021 free cash flow1 was a $149 million use of cash compared to a $435 million use of cash in 2020. The first
quarter is typically a use of cash due to the seasonality of the business. The lower use of cash in 2021 primarily reflected improved
working capital management.
· Capital
Structure: Total debt was $5.3 billion at March 31, 2021 compared to $6.4 billion at March 31, 2020. Net debt1 was $4.6
billion at March 31, 2021 which was down more than $900 million from the prior year. Lower debt levels primarily reflected favorable
cash flow and use of proceeds from divestitures partially offset by unfavorable foreign currency translation. Committed liquidity approximated
$2.1 billion at March 31, 2021.
Net sales were $1.5 billion in the first quarter
of 2021 compared to $1.6 billion in the prior year quarter. Adjusted for divestitures, net sales increased $66 million. Higher average
selling prices contributed $28 million to this increase while favorable mix contributed $10 million. In addition, foreign currency translation
added $35 million of higher sales in the quarter. Finally, revenue from technical services declined $7 million reflecting lower engineering
project activity. Shipments in tons were essentially flat to the prior year yet the company estimates global shipments increased 1.5 percent
excluding the negative effects of severe weather in the U.S. and Mexico.
Segment operating profit was $175 million in the
first quarter of 2021 compared to $176 million in the prior year period.
________________________________
1Adjusted earnings per share, free
cash flow, segment operating profit, and net debt are each non-GAAP financial measures. See tables included in this release for reconciliations
to the most directly comparable GAAP measures.
| · | Americas: Segment operating profit
in the Americas was $100 million compared to $103 million in the first quarter of 2020. Shipments in tons declined 1.3 percent but
the company estimates shipments were up 1.5 percent adjusted for the impact of severe weather that affected Texas, Oklahoma and
Mexico. The benefit of higher selling prices was more than offset by elevated cost inflation due to estimated energy surcharges
related to severe weather. Benefits from the company’s margin expansion initiatives more than offset the significant
operational impact of severe weather. Results included $4 million of favorable foreign currency translation. |
| · | Europe: Segment operating profit in Europe
was $75 million compared to $61 million in the first quarter 2020. Sales volume increased 2.0 percent while cost inflation slightly outpaced
the benefit of improved prices. Higher segment operating profit primarily reflect the benefit of the company’s margin expansion
initiatives. Likewise, results included $6 million of favorable foreign currency translation. |
| | |
| · | Asia Pacific: Segment operating profit
in Asia Pacific was $0 compared to $12 million in the first quarter 2020. Results of the Asia Pacific segment have been recast to reflect
only the earnings of the ANZ businesses following the sale of the business unit in July 2020. The sales and operating results of the other
businesses that historically comprised the Asia Pacific segment and were retained by the company, have been reclassified to Other sales
and Retained corporate costs and other, respectively. |
Retained corporate and other
costs were $35 million compared to $28 million in the prior year quarter. Higher costs primarily reflected additional R&D investment
in MAGMA, marketing expense for the company’s glass advocacy campaign and the change in value of foreign currency hedges.
2021 Outlook
Currently, O-I expects second quarter 2021 adjusted
earnings will approximate $0.45 to $0.50 per share. This outlook assumes higher selling prices offset cost inflation as well as double-digit
sales and production volume improvement compared to the second quarter 2020, which was significantly impacted by disruption from the pandemic.
The company reiterates its full year 2021 guidance
of $1.55 to $1.75 adjusted earnings per share and cash provided by operating activities of approximately $615 million or higher resulting
in approximately $240 million in free cash flow.
Given significant market uncertainty due to the
global pandemic, the company’s business outlook is subject to adjustment, especially if there is a material change in demand trends
compared to expectations. This outlook assumes foreign currency rates as of April 27, 2021, reflects the earnings dilution on the ANZ
divestiture and an effective annual tax rate of approximately 30 to 32 percent. This outlook is subject to adjustment if final energy
surcharges related to the severe weather during the first quarter differ significantly from the company’s initial estimates.
Conference
Call Scheduled for April 29, 2021
O-I CEO Andres Lopez and CFO John Haudrich will conduct a conference
call to discuss the company’s latest results on Thursday, April 29, 2021, at 8:00 a.m. EST. A live webcast of the conference call,
including presentation materials, will be available on the O-I website, www.o-i.com/investors, in the Webcasts and Presentations
section.
The conference call also may be accessed by dialing
888-733-1701 (U.S. and Canada) or 706-634-4943 (international) by 7:50 a.m. EST, on April 29, 2021. Ask for the O-I conference call.
A replay of the call will be available on the O-I website, www.o-i.com/investors,
for a year following the call.
Contact: Sasha Sekpeh, 567-336-5128 –
O-I Investor Relations
O-I news releases are available on the O-I website
at www.o-i.com.
O-I’s second quarter 2021 earnings conference
call is currently scheduled for Wednesday, August 4, 2021, at 8:00 a.m. EST.
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 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 more than 25,000 people across 72 plants in 20 countries, O-I achieved revenues of $6.1 billion in 2020. 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, adjusted earnings per share, free cash flow, segment operating profit, net debt, EBITDA and EBITDA to free cash flow
conversion 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. These non-GAAP measures are reconciled to the most directly comparable
GAAP measures and should be considered supplemental in nature and should not be considered in isolation or be construed as being more
important than comparable GAAP measures.
Adjusted earnings relates to net earnings from
continuing operations attributable to the company, exclusive of items management considers not representative of ongoing operations
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. Segment operating profit
relates to earnings from continuing operations before interest expense, net, and before income taxes and is also exclusive of items management
considers not representative of ongoing operations as well as certain retained corporate costs. Management uses adjusted earnings, adjusted
earnings per share, and segment operating profit 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, adjusted earnings per share and segment operating profit 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.
Net debt is defined as total debt less cash. Management
uses net debt to analyze the liquidity of the company.
Further, free cash flow relates to cash provided
by continuing operating activities less cash payments for property, plant and equipment. Management has historically used free cash flow
to evaluate its period-over-period cash generation performance because it believes this has provided a useful supplemental measure related
to its principal business activity. EBITDA is defined as earnings before interest, taxes, depreciation, and amortization. Free cash flow
and free cash flow to EBITDA conversion may be useful to investors to assist in understanding the comparability of cash flows generated
by the company’s principal business activity. It should not be inferred that the entire free cash flow amount is available for discretionary
expenditures, since the company has mandatory debt service requirements and other non-discretionary expenditures that are not deducted
from the measure. Management uses non-GAAP information principally for internal reporting, forecasting, budgeting and calculating compensation
payments.
The company routinely posts important information
on its website – www.o-i.com/investors.
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 (the “Exchange Act”) and Section 27A of the Securities Act of 1933. Forward-looking statements reflect the
company’s current expectations and projections about future events at the time, and thus involve uncertainty and risk. The words
“believe,” “expect,” “anticipate,” “will,” “could,” “would,” “should,”
“may,” “plan,” “estimate,” “intend,” “predict,” “potential,” “continue,”
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 the proposed plan of reorganization may not be approved by the bankruptcy 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) the terms and conditions of any reorganization plan that may ultimately be approved by the bankruptcy court, (4)
delays in the confirmation or consummation of a plan of reorganization due to factors beyond the company’s and Paddock’s
control, (5) risks with respect to the receipt of the consents necessary to effect the reorganization, (6) risks inherent in, and
potentially adverse developments related to, the bankruptcy proceeding, that could adversely affect the company and the
company’s liquidity or results of operations, (7) the impact of the COVID-19 pandemic and the various governmental, industry
and consumer actions related thereto, (8) the company’s ability to obtain the benefits it anticipates from the corporate
modernization, (9) 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, (10) 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, (11) the company’s ability to achieve its strategic plan, (12) the company’s ability to
improve its glass melting technology, known as the MAGMA program, (13) foreign currency fluctuations relative to the U.S. dollar,
(14) changes in capital availability or cost, including interest rate fluctuations and the ability of the company to refinance debt
on favorable terms, (15) the general political, economic and competitive conditions in markets and countries where the company has
operations, including uncertainties related to Brexit, economic and social conditions, disruptions in the supply chain, competitive
pricing pressures, inflation or deflation, changes in tax rates and laws, natural disasters, and weather, (16) the company’s
ability to generate sufficient future cash flows to ensure the company’s goodwill is not impaired, (17) consumer preferences
for alternative forms of packaging, (18) cost and availability of raw materials, labor, energy and transportation, (19)
consolidation among competitors and customers, (20) unanticipated expenditures with respect to data privacy, environmental, safety
and health laws, (21) unanticipated operational disruptions, including higher capital spending, (22) the company’s ability to
further develop its sales, marketing and product development capabilities, (23) the failure of the company’s joint venture
partners to meet their obligations or commit additional capital to the joint venture, (24) 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, (25) changes in U.S. trade policies, and the other risk factors discussed in the company’s
Annual Report on Form 10-K for the year ended December 31, 2020 and any subsequently filed Annual Report on Form 10-K, Quarterly
Reports on Form 10-Q or the company’s other filings with the Securities and Exchange Commission.
It is not possible to foresee or identify all
such factors. Any forward-looking statements in this document are based on certain assumptions and analyses made by the company in light
of its experience and perception of historical trends, current conditions, expected future developments, and other factors it believes
are appropriate in the circumstances. Forward-looking statements are not a guarantee of future performance and actual results or developments
may differ materially from expectations. While the company continually reviews trends and uncertainties affecting the company’s
results or operations and financial condition, the company does not assume any obligation to update or supplement any particular forward-looking
statements contained in this document.
| O-I GLASS, INC. |
| Condensed Consolidated Results of Operations |
| (Dollars in millions, except per share amounts) |
| | |
Three months ended
March 31 | |
| Unaudited | |
2021 | | |
2020 | |
| Net sales | |
$ | 1,500 | | |
$ | 1,561 | |
| Cost of goods sold | |
| (1,256 | ) | |
| (1,293 | ) |
| | |
| | | |
| | |
| Gross profit | |
| 244 | | |
| 268 | |
| | |
| | | |
| | |
| Selling and administrative expense | |
| (102 | ) | |
| (116 | ) |
| Research, development and engineering expense | |
| (18 | ) | |
| (16 | ) |
| Interest expense, net | |
| (51 | ) | |
| (53 | ) |
| Equity earnings | |
| 18 | | |
| 15 | |
| Other expense, net | |
| (156 | ) | |
| (17 | ) |
| | |
| | | |
| | |
| Earnings (loss) before income taxes | |
| (65 | ) | |
| 81 | |
| | |
| | | |
| | |
| Provision for income taxes | |
| (26 | ) | |
| (26 | ) |
| | |
| | | |
| | |
| Net earnings (loss) | |
| (91 | ) | |
| 55 | |
| | |
| | | |
| | |
| Net earnings attributable to noncontrolling interests | |
| (6 | ) | |
| (5 | ) |
| | |
| | | |
| | |
| Net earnings (loss) attributable to the Company | |
$ | (97 | ) | |
$ | 50 | |
| | |
| | | |
| | |
| Basic earnings per share: | |
| | | |
| | |
| Net earnings (loss) attributable to the Company | |
$ | (0.62 | ) | |
$ | 0.32 | |
| Weighted average shares outstanding (thousands) | |
| 157,571 | | |
| 156,081 | |
| | |
| | | |
| | |
| Diluted earnings per share: | |
| | | |
| | |
| Net earnings (loss) attributable to the Company | |
$ | (0.62 | ) | |
$ | 0.32 | |
| Diluted average shares (thousands) | |
| 157,571 | | |
| 157,684 | |
| O-I GLASS, INC. |
| Condensed Consolidated Balance Sheets |
| (Dollars in millions) |
| Unaudited | |
March 31, | | |
December 31, | | |
March 31, | |
| | |
2021 | | |
2020 | | |
2020 | |
| Assets | |
| | | |
| | | |
| | |
| Current assets: | |
| | | |
| | | |
| | |
| Cash and cash equivalents | |
$ | 742 | | |
$ | 563 | | |
$ | 891 | |
| Trade receivables, net | |
| 714 | | |
| 623 | | |
| 767 | |
| Inventories | |
| 827 | | |
| 841 | | |
| 1,047 | |
| Prepaid expenses and other current assets | |
| 203 | | |
| 270 | | |
| 257 | |
| Total current assets | |
| 2,486 | | |
| 2,297 | | |
| 2,962 | |
| | |
| | | |
| | | |
| | |
| Property, plant and equipment, net | |
| 2,791 | | |
| 2,907 | | |
| 2,987 | |
| Goodwill | |
| 1,880 | | |
| 1,951 | | |
| 1,773 | |
| Intangibles, net | |
| 310 | | |
| 325 | | |
| 312 | |
| Other assets | |
| 1,358 | | |
| 1,402 | | |
| 1,470 | |
| | |
| | | |
| | | |
| | |
| Total assets | |
$ | 8,825 | | |
$ | 8,882 | | |
$ | 9,504 | |
| | |
| | | |
| | | |
| | |
| Liabilities and Share Owners' Equity | |
| | | |
| | | |
| | |
| Current liabilities: | |
| | | |
| | | |
| | |
| Accounts payable | |
$ | 998 | | |
$ | 1,126 | | |
$ | 1,025 | |
| Short-term loans and long-term debt due within one year | |
| 180 | | |
| 197 | | |
| 283 | |
| Other liabilities | |
| 524 | | |
| 575 | | |
| 516 | |
| Total current liabilities | |
| 1,702 | | |
| 1,898 | | |
| 1,824 | |
| | |
| | | |
| | | |
| | |
| Long-term debt | |
| 5,168 | | |
| 4,945 | | |
| 6,115 | |
| Paddock support agreement liability | |
| 625 | | |
| 471 | | |
| 471 | |
| Other long-term liabilities | |
| 1,068 | | |
| 1,167 | | |
| 1,018 | |
| Share owners' equity | |
| 262 | | |
| 401 | | |
| 76 | |
| | |
| | | |
| | | |
| | |
| Total liabilities and share owners' equity | |
$ | 8,825 | | |
$ | 8,882 | | |
$ | 9,504 | |
| O-I GLASS, INC. |
| Condensed Consolidated Cash Flow |
| (Dollars in millions) |
| |
| Unaudited | |
Three months ended
March 31 |
| | |
2021 | | |
2020 | |
| Cash flows from operating activities: | |
| | |
| |
| Net earnings (loss) | |
$ | (91 | ) | |
$ | 55 | |
| Non-cash charges | |
| | | |
| | |
| Depreciation and amortization | |
| 115 | | |
| 126 | |
| Pension expense | |
| 8 | | |
| 9 | |
| Charge related to Paddock support agreement liability | |
| 154 | | |
| | |
| Cash payments | |
| | | |
| | |
| Pension contributions | |
| (18 | ) | |
| (13 | ) |
| Cash paid for restructuring activities | |
| (3 | ) | |
| (8 | ) |
| Change in components of working capital (a) | |
| (229 | ) | |
| (461 | ) |
| Other, net (b) | |
| 8 | | |
| (23 | ) |
| Cash utilized in operating activities | |
| (56 | ) | |
| (315 | ) |
| | |
| | | |
| | |
| Cash flows from investing activities: | |
| | | |
| | |
| Cash payments for property, plant and equipment | |
| (93 | ) | |
| (120 | ) |
| Net cash proceeds on disposal of other businesses and misc. assets | |
| 4 | | |
| | |
| Net cash proceeds on sale of ANZ business | |
| 58 | | |
| | |
| Deconsolidation of Paddock | |
| | | |
| (47 | ) |
| Other | |
| | | |
| 2 | |
| Cash utilized in investing activities | |
| (31 | ) | |
| (165 | ) |
| | |
| | | |
| | |
| Cash flows from financing activities: | |
| | | |
| | |
| Changes in borrowings, net | |
| 290 | | |
| 859 | |
| Dividends Paid | |
| | | |
| (8 | ) |
| Issuance of common stock and other | |
| (2 | ) | |
| (2 | ) |
| Cash provided by financing activities | |
| 288 | | |
| 849 | |
| Effect of exchange rate fluctuations on cash | |
| (22 | ) | |
| (29 | ) |
| Change in cash | |
| 179 | | |
| 340 | |
| Cash at beginning of period | |
| 563 | | |
| 551 | |
| Cash at end of period | |
$ | 742 | | |
$ | 891 | |
| (a) |
The Company uses various factoring programs to sell certain receivables to financial institutions as part of managing its cash flows. At March 31, 2021, December 31, 2020 and March 31, 2020, the amount of receivables sold by the Company was $444 million, $436 million and $429 million, respectively. For the three months ended March 31, 2021 and 2020, the Company's use of its factoring programs resulted in an increase of $8 million to cash from operating activities and a $110 million decrease to cash from operating activities, respectively. |
| |
|
|
|
|
|
|
|
| (b) |
Other, net includes other non-cash charges plus other changes in non-current assets and liabilities. |
| |
| O-I GLASS, INC. |
| Reportable Segment Information and Reconciliation to Earnings Before Income Taxes |
| (Dollars in millions) |
| | |
| | |
| |
| Unaudited | |
Three months ended
March 31 | |
| | |
2021 | | |
2020 | |
| Net sales: | |
| | | |
| | |
| Americas | |
$ | 837 | | |
$ | 831 | |
| Europe | |
| 639 | | |
| 576 | |
| Asia Pacific | |
| - | | |
| 123 | |
| Reportable segment totals | |
| 1,476 | | |
| 1,530 | |
| | |
| | | |
| | |
| Other | |
| 24 | | |
| 31 | |
| Net sales | |
$ | 1,500 | | |
$ | 1,561 | |
| | |
| | | |
| | |
| Segment operating profit (a): | |
| | | |
| | |
| | |
| | | |
| | |
| Americas | |
$ | 100 | | |
$ | 103 | |
| Europe | |
| 75 | | |
| 61 | |
| Asia Pacific | |
| - | | |
| 12 | |
| Reportable segment totals | |
| 175 | | |
| 176 | |
| Items excluded from segment operating profit: | |
| | | |
| | |
| Retained corporate costs and other | |
| (35 | ) | |
| (28 | ) |
| Charge related to Paddock support agreement liability | |
| (154 | ) | |
| | |
| Charge for deconsolidation of Paddock | |
| | | |
| (14 | ) |
| | |
| | | |
| | |
| Interest expense, net | |
| (51 | ) | |
| (53 | ) |
| Earnings (loss) before income taxes | |
$ | (65 | ) | |
$ | 81 | |
| | |
| | | |
| | |
| Ratio of earnings before income taxes to net sales | |
| -4.3 | % | |
| 5.2 | % |
| | |
| | | |
| | |
| Segment operating profit margin (b): | |
| | | |
| | |
| | |
| | | |
| | |
| Americas | |
| 11.9 | % | |
| 12.4 | % |
| Europe | |
| 11.7 | % | |
| 10.6 | % |
| Asia Pacific | |
| - | | |
| 9.8 | % |
| Reportable segment margin totals | |
| 11.9 | % | |
| 11.5 | % |
| (a) |
Segment operating profit consists of consolidated earnings before interest income, interest expense, and provision for income taxes and excludes amounts related to certain items that management considers not representative of ongoing operations as well as certain retained corporate costs. |
| |
|
| |
The Company presents information on segment operating profit because management believes that it provides investors with a measure of operating performance separate from the level of indebtedness or other related costs of capital. The most directly comparable GAAP financial measure to segment operating profit is earnings before income taxes. The Company presents segment operating profit because management uses the measure, in combination with net sales and selected cash flow information, to evaluate performance and to allocate resources. |
| |
|
| (b) |
Segment operating profit margin is segment operating profit divided by segment net sales. |
O-I
GLASS, INC.
Changes
in Net Sales and Segment Operating Profit for Reportable Segments
(Dollars
in millions)
Unaudited
| |
|
Three months ended March 31 |
|
| |
|
Americas |
|
|
Europe |
|
|
Asia Pacific |
|
|
Total |
|
| Net sales for reportable segments- 1Q20 |
|
$ |
831 |
|
|
$ |
576 |
|
|
$ |
123 |
|
|
$ |
1,530 |
|
| Effects of changing foreign currency rates (a) |
|
|
(13 |
) |
|
|
48 |
|
|
|
|
|
|
|
35 |
|
| Price |
|
|
26 |
|
|
|
2 |
|
|
|
|
|
|
|
28 |
|
| Sales volume & mix |
|
|
(3 |
) |
|
|
13 |
|
|
|
|
|
|
|
10 |
|
| Divestitures |
|
|
(4 |
) |
|
|
|
|
|
|
(123 |
) |
|
|
(127 |
) |
| Total reconciling items |
|
|
6 |
|
|
|
63 |
|
|
|
(123 |
) |
|
|
(54 |
) |
| Net sales for reportable segments- 1Q21 |
|
$ |
837 |
|
|
$ |
639 |
|
|
$ |
- |
|
|
$ |
1,476 |
|
| | |
Three months ended March 31 | |
| | |
Americas | | |
Europe | | |
Asia Pacific | | |
Total | |
| Segment operating profit - 1Q20 | |
$ | 103 | | |
$ | 61 | | |
$ | 12 | | |
$ | 176 | |
| Effects of changing foreign currency rates (a) | |
| 4 | | |
| 6 | | |
| | | |
| 10 | |
| Net price (net of cost inflation) | |
| (17 | ) | |
| (3 | ) | |
| | | |
| (20 | ) |
| Sales volume & mix | |
| (1 | ) | |
| 3 | | |
| | | |
| 2 | |
| Operating costs | |
| 11 | | |
| 8 | | |
| | | |
| 19 | |
| Divestitures | |
| | | |
| | | |
| (12 | ) | |
| (12 | ) |
| Total reconciling items | |
| (3 | ) | |
| 14 | | |
| (12 | ) | |
| (1 | ) |
| Segment operating profit - 1Q21 | |
$ | 100 | | |
$ | 75 | | |
$ | - | | |
$ | 175 | |
(a)
Currency effect on net sales and segment operating profit determined by using 2021 foreign currency exchange rates to translate 2020
local currency results.
O-I GLASS, INC.
Reconciliation for Adjusted Earnings
(Dollars
in millions, except per share amounts)
The reconciliation below describes the items that management considers not representative of ongoing operations.
Unaudited
| | |
Three months ended | |
| | |
March 31, 2021 | | |
March 31, 2020 | |
| Net earnings (loss) attributable to the Company | |
$ | (97 | ) | |
$ | 50 | |
| Items impacting other expense, net: | |
| | | |
| | |
| Charge related to Paddock support agreement liability | |
| 154 | | |
| | |
| Charge for deconsolidation of Paddock | |
| | | |
| 14 | |
| Total adjusting items (non-GAAP) | |
$ | 154 | | |
$ | 14 | |
| | |
| | | |
| | |
| Adjusted earnings (non-GAAP) | |
$ | 57 | | |
$ | 64 | |
| | |
| | | |
| | |
| Diluted average shares (thousands) | |
| 157,571 | | |
| 157,684 | |
| | |
| | | |
| | |
| Net earnings (loss) attributable to the Company (diluted) | |
$ | (0.62 | ) | |
$ | 0.32 | |
| Adjusted earnings per share (non-GAAP) (a) | |
$ | 0.35 | | |
$ | 0.41 | |
(a)
For purposes of computing adjusted earnings per share, the diluted average shares (in thousands) are 160,125 for the three months ended
March 31, 2021.
The
Company is unable to present a quantitative reconciliation of its forward-looking non-GAAP measure, adjusted earnings and adjusted
earnings per share, for the quarter ending June 30, 2021 or year ending December 31, 2021, to its most directly comparable GAAP
financial measure, earnings from continuing operations attributable to the Company, because management cannot reliably predict all
of the necessary components of this GAAP financial measure without unreasonable efforts. Earnings from continuing
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 continuing 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.
Unaudited
O-I GLASS, INC.
Reconciliation to Free Cash Flow
(Dollars in millions)
| | |
Three months Ended | | |
Three months Ended | | |
Forecast for Year Ended | |
| | |
March 31, 2021 | | |
March 31, 2020 | | |
December 31, 2021 | |
| Cash provided by (utilized in) continuing operating activities | |
$ | (56 | ) | |
$ | (315 | ) | |
$ | 615 | |
| Cash payments for property, plant and equipment | |
| (93 | ) | |
| (120 | ) | |
| (375 | ) |
| Free cash flow (non-GAAP) | |
$ | (149 | ) | |
$ | (435 | ) | |
$ | 240 | |
O-I GLASS, INC.
Reconciliation to Net Debt
Unaudited
| | |
March 31, 2021 | | |
March 31, 2020 | |
| Total debt | |
$ | 5,348 | | |
$ | 6,398 | |
| Cash and cash equivalents | |
| 742 | | |
| 891 | |
| Net Debt | |
$ | 4,606 | | |
$ | 5,507 | |
O-I GLASS, INC.
Reconciliation to Adjusted Effective Tax Rate
The Company is unable to present a quantitative reconciliation of
its forward-looking non-GAAP measure, adjusted effective tax rate, for the year ending December 31, 2021, to its most directly comparable
GAAP financial measure, provision for income taxes divided by earnings (loss) from continuing operations before income taxes, because
management cannot reliably predict all of the necessary components of these GAAP financial measures without unreasonable efforts. Earnings
(loss) from continuing operations before income taxes includes several significant items, such as restructuring charges, asset impairment
charges, charges for the write-off of finance fees, and the provision for income taxes would include 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 of adjusted effective
tax rate to earnings (loss) from continuing operations before income taxes divided by provision for income taxes or address the probable
significance of the unavailable information, which could be material to the Company's future financial results.
