O-I Glass Inc DE
For the period ended Sep 30, 2024. Filed Oct 30, 2024.
View on SEC.govAbout this filing
A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Sep 30, 2024 · Filed Oct 30, 2024
OI$5.17-4.1%Stored close · as of Nov 6, 2026
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-Q
Period ended 2024-06-30; filed 2024-07-31.
0001558370-24-010487
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-Q
Period ended 2024-09-30; filed 2024-10-30.
0001558370-24-013964
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsThe baseline is this issuer’s latest earlier reporting period of the same form that was filed before the current report. A previous 10-Q is a different quarter, not a year-over-year comparison. Amendments are excluded.
Compared 104 previous paragraphs and 108 current paragraphs.
48 unchanged; 41 reworded; 18 added; 11 removed; 4 previous and 1 current paragraphs rearranged.
Tables are not compared: 14 previous and 14 current tables excluded. Dates, whitespace, punctuation and numbering changes are ignored; changes to financial figures remain significant.
A changed paragraph is not evidence that risk increased or decreased. An unchanged paragraph does not establish that risk stayed the same.
Added paragraphs (18)
Current report
Loss before income taxes was $57 million in the third quarter of 2024 compared to earnings before income taxes of $82 million in the third quarter of 2023. This change was primarily due to lower segment operating profit and higher interest expense, partially offset by lower retained corporate and other costs.
Current report
Results of Operations — Third Quarter of 2024 Compared with Third Quarter of 2023
Current report
The Company’s net sales in the third quarter of 2024 were $1,679 million compared with $1,743 million in the third quarter of 2023, a decrease of $64 million, or 4%. Average selling prices decreased approximately 4% which lowered net sales by $72 million in the third quarter of 2024. Glass container shipments, in tons, increased approximately 2% in the third quarter of 2024, which increased net sales by approximately $34 million compared to the same period in the prior year. This increase was a result of comparable or higher shipments in all of the Company’s geographic markets, except for a decline in southwest Europe. While market conditions remain sluggish, the third quarter of 2024 represented the first year-over-year increase in shipments in seven quarters. Unfavorable foreign currency exchange rates decreased net sales by $30 million in the third quarter of 2024 compared to the same period in the prior year. Other sales were approximately $4 million higher in the third quarter of 2024 than in the same period in the prior year, driven by higher machine part sales.
Current report
Americas: Net sales in the Americas in the third quarter of 2024 were $940 million compared to $948 million in the third quarter of 2023, a decrease of $8 million, or 1%. Lower selling prices in the region decreased net sales by $6 million in the third quarter of 2024, driven by the pass through of lower cost inflation, especially lower energy costs in North America. Glass container shipments in the region were up nearly 7% in the third quarter of 2024 compared to the same period in the prior year, which increased net sales by approximately $44 million. The increase in sales was driven
Current report
byhigher shipments to all end markets in the quarter, except to spirits customers, which were impacted by lower shipments in Mexico and North America due to continued destocking. The unfavorable effects of foreign currency exchange rate changes decreased net sales by $46 million in the third quarter of 2024 compared to the prior year quarter, as the Brazilian Real and Mexican Peso weakened compared to the U.S. dollar.
Current report
Loss before income taxes was $57 million in the third quarter of 2024 compared to earnings before income taxes of $82 million in the third quarter of 2023, a change of $139 million. This change was primarily due to lower segment operating profit and higher interest expense in the third quarter of 2024, partially offset by lower retained corporate and other costs.
Current report
Segment operating profit of reportable segments in the third quarter of 2024 was $144 million, compared to $301 million in the third quarter of 2023, a decrease of $157 million, or 52%. This decrease was primarily due to lower net prices (net of cost inflation) and higher operating costs. Operating costs were driven higher in the third quarter of 2024 due to lower production volumes driven by temporary curtailments of approximately 18% of the Company’s production capacity to rebalance inventory levels in response to several quarters of sluggish demand. Segment operating profit was favorably impacted by slightly higher shipments in the third quarter of 2024.
Current report
America and resulted in a $24 million decrease to segment operating profit in the third quarter of 2024. The effects of foreign currency exchange rates decreased segment operating profit by $1 million in the third quarter of 2024.
Current report
Net Earnings (Loss) Attributable to the Company
Current report
Executive Overview — Nine Months Ended September 30, 2024 and 2023
Current report
In order to better match production to customer demand, management has implemented temporary production curtailments in the region. This initiative has resulted in higher operating costs in the first three quarters of 2024 due to unabsorbed fixed costs. Temporary production curtailments will continue during the fourth quarter of 2024, and this is expected to increase operating costs. In addition, in October 2024, the Company initiated discussions with its European
Current report
Restructuring, Asset Impairment and Other Charges
Current report
For the three and nine months ended September 30, 2024, the Company recorded restructuring and other charges of approximately $83 million to Other expense, net ($81 million) and Equity earnings ($2 million) on the Condensed Consolidated Results of Operations, of which $80 million of cumulative charges related to the Fit to Win program. These charges consisted of employee costs, such as severance and benefit-related costs, write-down of assets and other exit costs in the Americas segment ($72 million) and Retained Corporate costs and other ($11 million). The Fit to Win program expects to reduce redundant production capacity and begin to optimize the network, as well as streamline other cost areas, such as selling, general and administrative expenses. Additional restructuring charges are expected in future quarters. The Company expects that the majority of the remaining cash expenditures related to the accrued employee and other exit costs will be paid out over the next several years.
Current report
For the three and nine months ended September 30, 2023, the Company implemented several discrete restructuring initiatives and recorded restructuring and other charges of $81 million. These charges consisted of employee costs, such as severance and benefit-related costs, write-down of assets and other exit costs in the Americas segment ($77 million), the Europe ($1 million) segment and Retained corporate costs and other ($3 million). These restructuring charges were discrete actions and are expected to approximate the total cumulative costs for those actions as no significant additional costs are expected to be incurred. For the three and nine months ended September 30, 2023, these charges were recorded to Other income (expense), net on the Condensed Consolidated Results of Operations. The Company expects that the majority of the remaining cash expenditures related to the accrued employee and other exit costs will be paid out over the next several years.
Current report
Gain on Sale of Miscellaneous Assets
Current report
For the three and nine months ended September 30, 2024, the Company recorded a pre-tax gain of approximately $1 million on the sale of land and buildings of a previously closed plant in the Americas.
Current report
Operating activities: Cash provided by operating activities was $171 million and $437 million for the nine months ended September 30, 2024 and September 30, 2023, respectively. The decrease in cash provided by operating activities
Current report
in the first nine months of 2024 was primarily due to lower net income, partially offset by a lower use of working capital, than in the same period in 2023.
Removed paragraphs (11)
Previous report
Earnings before income taxes were $50 million lower in the second quarter of 2024 compared to the second quarter of 2023. This decrease was primarily due to lower segment operating profit, partially offset by lower interest expense and retained corporate and other costs.
Previous report
Results of Operations — Second Quarter of 2024 Compared with Second Quarter of 2023
Previous report
The Company’s net sales in the second quarter of 2024 were $1,729 million compared with $1,890 million in the second quarter of 2023, a decrease of $161 million, or 9%. Lower average selling prices decreased net sales by $39 million in second quarter of 2024. Glass container shipments, in tons, declined approximately 4.5% in the second quarter of 2024, which decreased net sales by approximately $111 million compared to the same period in prior year. This decline primarily resulted from continued sluggish market conditions with soft consumer consumption activity in all end-use categories and receding destocking trends. As of the end of the second quarter of 2024, the Company believes that destocking activity has receded across most categories, except spirits which will likely continue through the end of 2024. Unfavorable foreign currency exchange rates decreased net sales by $8 million in the second quarter of 2024 compared to the same period in the prior year. Other sales were approximately $3 million lower in the second quarter of 2024 than in the same period in the prior year, driven by lower sales in Asia.
Previous report
shipments to beer, wine and spirits customers in North America and Mexico in the quarter, however, shipments were up by a double digit percentage in the Andean market following recent expansion. The unfavorable effects of foreign currency exchange rate changes decreased net sales by $1 million in the second quarter of 2024 compared to the prior year quarter.
Previous report
Earnings before income taxes were $104 million in the second quarter of 2024 compared to $154 million in the second quarter of 2023, a decrease of $50 million. This decrease was primarily due to lower segment operating profit, partially offset by lower interest expense and retained corporate and other costs.
Previous report
Segment operating profit of reportable segments in the second quarter of 2024 was $233 million, compared to $326 million in the second quarter of 2023, a decrease of $93 million, or 29%. This decrease was primarily due to lower shipments, lower net prices and higher operating costs due to lower production volumes driven by temporary curtailments of production to balance with lower demand and the non-recurrence of an energy subsidy received in the prior year.
Previous report
Executive Overview — Six months ended June 30, 2024 and 2023
Previous report
$34 million in the first six months of 2024 compared to the same period in the prior year. Other sales were approximately $5 million lower in the first half of 2024 than in the same period in the prior year, driven by lower sales in Asia.
Previous report
network. And the Company expects to reduce selling, general and administrative costs significantly as it streamlines the organization.
Previous report
In order to maintain a capital structure containing appropriate amounts of fixed and floating-rate debt, the Company has entered into a series of interest rate swap agreements. These interest rate swap agreements were accounted for as fair value hedges (see Note 5 for more information).
Previous report
Operating activities: Cash utilized in operating activities was $20 million, and cash provided was $98 million for the six months ended June 30, 2024 and June 30, 2023, respectively. The increase in cash utilized in operating activities in the first six months of 2024 was primarily due to lower net income than in the same period in 2023.
Reworded paragraphs (41)
Previous wording
Financial information for the three and six months ended June 30, 2024 and 2023 regarding the Company’s reportable segments is as follows (dollars in millions):
Current wording
Financial information for the three and nine months ended September 30, 2024 and 2023 regarding the Company’s reportable segments is as follows (dollars in millions):
Previous wording
Net sales in the second quarter of 2024 decreased $161 million, or 9%, compared to the same quarter in the prior year, as a result of lower sales volumes, lower average selling prices and the unfavorable effects of changes in foreign currency translation.
Current wording
Net sales in the third quarter of 2024 decreased $64 million, or 4%, compared to the same quarter in the prior year, as a result of lower average selling prices and the unfavorable effects of changes in foreign currency translation, partially offset by slightly higher sales volumes.
Previous wording
Segment operating profit for reportable segments in the second quarter of 2024 was $93 million lower compared to the same quarter of 2023, primarily due to lower shipments, lower net prices and higher operating costs due to lower production volumes driven by temporary curtailments of production to balance with lower demand.
Current wording
Segment operating profit for reportable segments in the third quarter of 2024 was $157 million lower compared to the same quarter of 2023, primarily due to lower net prices (net of cost inflation) and higher operating costs due to significant temporary production curtailment to reduce elevated inventory levels following several quarters of sluggish demand, partially offset by slightly higher shipments in the third quarter of 2024.
Previous wording
Net interest expense for the second quarter of 2024 decreased $31 million compared to the second quarter of 2023, primarily due to lower note repurchase premiums, write-offs of deferred finance fees and related charges, partially offset by higher interest rates.
Current wording
Net interest expense for the third quarter of 2024 increased $9 million compared to the third quarter of 2023, primarily due to higher interest rates.
Previous wording
For the second quarter of 2024, the Company recorded net earnings attributable to the Company of $57 million, or $0.36 per share (diluted), compared to net earnings attributable to the Company of $110 million, or $0.69 per share (diluted), in the second quarter of 2023. As discussed below, net earnings attributable to the Company in both periods included items that management considers not representative of ongoing operations and other adjustments. These items decreased net earnings attributable to the Company by $12 million, or $0.08 per share, in the second quarter of 2024 and decreased net earnings attributable to the Company by $30 million, or $0.19 per share, in the second quarter of 2023.
Current wording
For the third quarter of 2024, the Company recorded a net loss attributable to the Company of $80 million, or $0.52 per share, compared to net earnings attributable to the Company of $51 million, or $0.32 per share (diluted), in the third quarter of 2023. As discussed below, net earnings (loss) attributable to the Company in both periods included items that management considers not representative of ongoing operations and other adjustments. These items negatively impacted net loss attributable to the Company by $74 million, or $0.48 per share, in the third quarter of 2024 and negatively impacted net earnings attributable to the Company by $75 million, or $0.48 per share, in the third quarter of 2023.
Previous wording
Europe: Net sales in Europe in the second quarter of 2024 were $802 million compared to $863 million in the second quarter of 2023, a decrease of $61 million, or 7%. Lower average selling prices in Europe decreased net sales by $52 million in the second quarter of 2024. Glass container shipments were comparable in the second quarter of 2024 to the second quarter of 2023 and decreased net sales by approximately $2 million compared to the prior year quarter. Shipments to beer and wine customers were up modestly compared to the same quarter in the prior year while spirits shipments remained soft. Unfavorable foreign currency exchange rates decreased the region’s net sales by approximately $7 million in the second quarter of 2024, as the Euro weakened in relation to the U.S. dollar.
Current wording
Europe: Net sales in Europe in the third quarter of 2024 were $706 million compared to $766 million in the third quarter of 2023, a decrease of $60 million, or 8%. Lower average selling prices in Europe decreased net sales by $66 million in the third quarter of 2024, driven by the pass through of lower cost inflation, especially lower energy costs. Glass container shipments were down approximately 2% in the third quarter of 2024 compared to the third quarter of 2023 and decreased net sales by approximately $10 million compared to the prior year quarter. Shipments were comparable or higher in all geographic markets in the segment, except for Southwest Europe where the beer category was impacted by poor weather conditions and the wine category remained soft. Favorable foreign currency exchange rates increased the region’s net sales by approximately $16 million in the third quarter of 2024, as the Euro strengthened in relation to the U.S. dollar.
Previous wording
Earnings before Income Taxes and Segment Operating Profit
Current wording
Earnings (Loss) before Income Taxes and Segment Operating Profit
Previous wording
Americas: Segment operating profit in the Americas in the second quarter of 2024 was $106 million, compared to $126 million in the second quarter of 2023, a decrease of $20 million, or 16%. The impact of lower shipments discussed above resulted in a $21 million decrease to segment operating profit in the second quarter of 2024 compared to the same period in 2023. Operating costs in the second quarter of 2024 were $6 million higher than in the same period in the prior year. The increase in operating costs was primarily due to lower production volumes, driven by temporary curtailments of production to balance with lower demand, partially offset by margin expansion initiatives, including approximately $17 million of lower operating costs as a result of the region’s restructuring actions taken in 2023 (in line with management’s expectations). Higher selling prices exceeded cost inflation and resulted in a $3 million increase to segment operating profit in the second quarter of 2024. The effects of foreign currency exchange rates increased segment operating profit by $4 million in the second quarter of 2024.
Current wording
Americas: Segment operating profit in the Americas in the third quarter of 2024 was $88 million, compared to $116 million in the third quarter of 2023, a decrease of $28 million, or 24%. The impact of higher shipments discussed above resulted in a $14 million increase to segment operating profit in the third quarter of 2024 compared to the same period in 2023. Operating costs in the third quarter of 2024 were $17 million higher than in the same period in the prior year. The increase in operating costs was primarily due to lower production volumes, driven by temporary curtailments of approximately 15% of the segment’s production capacity to rebalance inventory levels following several quarters of sluggish demand. This was partially mitigated by effective operating and cost management, including approximately $19 million of lower operating costs as a result of the region’s restructuring actions taken in 2023 (in line with management’s expectations). Lower net selling prices (net of cost inflation) were impacted by cost inflation in Latin
Previous wording
unabsorbed fixed costs. Temporary production curtailments will continue during 2024, and this is expected to increase operating costs. In addition, the Company will continue to monitor business trends and consider whether any indefinite or permanent capacity closures in the Americas will be necessary in the future to align its business with demand trends. Any indefinite or permanent capacity closures could result in material restructuring and impairment charges, as well as cash expenditures, in future periods.
Current wording
In order to better match production to customer demand, management has implemented temporary production curtailments in the region. This initiative has resulted in higher operating costs in the third quarter of 2024 due to unabsorbed fixed costs. Temporary production curtailments will continue during the fourth quarter of 2024, and this is expected to increase operating costs. In addition, in the third quarter of 2024, the Company announced the permanent closure of five furnaces. The Company will continue to monitor business trends and consider whether any additional indefinite or permanent capacity closures in the Americas will be necessary in the future to align its business with demand trends. Any indefinite or permanent capacity closures could result in material restructuring and impairment charges, as well as cash expenditures, in future periods.
Previous wording
Europe: Segment operating profit in Europe in the second quarter of 2024 was $127 million compared to $200 million in the second quarter of 2023, a decrease of $73 million, or 37%. The impact of a change in sales mix decreased segment operating profit by approximately $1 million. Lower selling prices decreased segment operating profit by $45 million in the second quarter of 2024 compared to the same period in the prior year. Operating costs in the second quarter of 2024 were $24 million higher than in the prior year period. Operating costs were impacted in the second quarter of 2024 by lower production volumes, driven by temporary production curtailments to balance supply with demand, lower earnings from joint ventures and the non-recurrence of approximately $9 million in subsidies received from the Italian government to help mitigate the impact of elevated energy costs in the second quarter of 2023. The effects of foreign currency exchange rates slightly decreased segment operating profit by $3 million in the second quarter of 2024.
Current wording
Europe: Segment operating profit in Europe in the third quarter of 2024 was $56 million compared to $185 million in the third quarter of 2023, a decrease of $129 million, or 70%. The impact of lower shipments discussed above decreased segment operating profit by approximately $3 million. Lower net selling prices (net of cost inflation) were impacted by price adjustments initiated earlier in the year and decreased segment operating profit by $55 million in the third quarter of 2024 compared to the same period in the prior year. Operating costs in the third quarter of 2024 were $74 million higher than in the prior year period. Operating costs were impacted in the third quarter of 2024 by lower production volumes, driven by temporary production curtailments of approximately 21% of the segment’s production capacity to rebalance inventory levels. The effects of foreign currency exchange rates slightly increased segment operating profit by $3 million in the third quarter of 2024.
Previous wording
In order to better match production to customer demand, management has implemented temporary production curtailments in the region. This initiative has resulted in higher operating costs in the second quarter of 2024 due to unabsorbed fixed costs. Temporary production curtailments will continue during 2024, and this is expected to increase operating costs. In addition, the Company will continue to monitor business trends and consider whether any indefinite or permanent capacity closures in Europe will be necessary in the future to align its business with demand trends. Any indefinite or permanent capacity closures could result in material restructuring and impairment charges, as well as cash expenditures, in future periods.
Current wording
In order to better match production to customer demand, management has implemented temporary production curtailments in the region. This initiative has resulted in higher operating costs in the third quarter of 2024 due to unabsorbed fixed costs. Temporary production curtailments will continue during the fourth quarter of 2024, and this is expected to increase operating costs. In addition, in October 2024, the Company initiated discussions with its European Works Councils to permanently close several furnaces and eliminate a number of selling, general and administrative positions within the European segment. These discussions are dependent on the relevant country processes and are expected to conclude in the fourth quarter of 2024 or early 2025. The Company will continue to monitor business trends and consider whether any indefinite or permanent capacity closures in Europe will be necessary in the future to align its business with demand trends. Any indefinite or permanent capacity closures could result in material restructuring and impairment charges, as well as cash expenditures, in future periods.
Previous wording
Net interest expense in the second quarter of 2024 was $87 million compared to $118 million for the second quarter of 2023. The decrease wasprimarily due to $37 million in lower note repurchase premiums, write-offs of deferred finance fees and related charges in the second quarter of 2024, partially offset by higher interest rates.
Current wording
Net interest expense in the third quarter of 2024 was $87 million compared to $78 million for the third quarter of 2023. The increase wasprimarily due to higher interest rates.
Previous wording
The Company’s effective tax rate from operations for the second quarter of 2024 was 40.4% compared to 26.6% for the second quarter of 2023. The effective tax rate for the second quarter of 2024 differed from the second quarter of 2023 due to a change in the mix of geographic earnings.
Current wording
The Company’s effective tax rate from operations for the third quarter of 2024 was (33.3)% compared to 31.7% for the third quarter of 2023. The effective tax rate for the third quarter of 2024 differed from the third quarter of 2023 due to a net unfavorable tax rate on restructuring charges and a change in the mix of geographic earnings.
Previous wording
For the second quarter of 2024, the Company recorded net earnings attributable to the Company of $57 million, or $0.36 per share (diluted), compared to $110 million, or $0.69 per share (diluted), in the second quarter of 2023. Earnings in the second quarter of 2024 and 2023 included items that management considers not representative of ongoing operations and other adjustments as set forth in the following table (dollars in millions):
Current wording
For the third quarter of 2024, the Company recorded a net loss attributable to the Company of $80 million, or $0.52 per share, compared to net earnings attributable to the Company of $51 million, or $0.32 per share (diluted), in the third quarter of 2023. Earnings in the third quarter of 2024 and 2023 included items that management considers not representative of ongoing operations and other adjustments as set forth in the following table (dollars in millions):
Previous wording
Net sales for the first six months of 2024 decreased $399 million, or 11%, compared to the same period in the prior year, as the benefit of favorable foreign currency translation was more than offset by lower sales volumes and lower average selling prices.
Current wording
Net sales for the first nine months of 2024 decreased $462 million, or 9%, compared to the same period in the prior year, as the slight benefit of favorable foreign currency translation was more than offset by lower sales volumes and lower average selling prices.
Previous wording
Earnings before income taxes were $203 million lower in the first six months of 2024 compared to the same period in 2023. This decrease was primarily due to lower segment operating profit, partially offset by lower interest expense and retained corporate and other costs.
Current wording
Earnings before income taxes were $343 million lower in the first nine months of 2024 compared to the same period in 2023. This decrease was primarily due to lower segment operating profit and higher legacy environmental charges, partially offset by lower interest expense and retained corporate and other costs.
Previous wording
Segment operating profit for reportable segments in the first six months of 2024 was $256 million lower compared to the first six months of 2023, primarily due to lower shipments, lower net prices and higher operating costs due to lower production volumes driven by temporary curtailments of production to balance with lower demand.
Current wording
Segment operating profit for reportable segments in the first nine months of 2024 was $413 million lower compared to the first nine months of 2023, primarily due to lower shipments, lower net prices (net of cost inflation) and higher operating costs. The higher operating costs were primarily due to lower production volumes driven by temporary curtailments of production to balance with lower demand, lower earnings from joint ventures and the non-recurrence of an energy subsidy received in the prior year, partially offset by effective operating and cost management.
Previous wording
Net interest expense for the first half of 2024 decreased $21 million compared to the same period in 2023, primarily due to lower note repurchase premiums, write-offs of deferred finance fees and related charges, partially offset by higher interest rates.
Current wording
Net interest expense for the first nine months of 2024 decreased $11 million compared to the same period in 2023, primarily due to lower note repurchase premiums, write-offs of deferred finance fees and related charges, partially offset by higher interest rates.
Previous wording
For the first six months of 2024, the Company recorded net earnings attributable to the Company of $129 million, or $0.81 per share (diluted), compared to net earnings attributable to the Company of $316 million, or $1.98 per share (diluted), in the first six months of 2023. As discussed below, net earnings attributable to the Company in the first half of 2024 and 2023 included items that management considers not representative of ongoing operations and other adjustments. These items decreased net earnings attributable to the Company by $12 million, or $0.08 per share, in the first six months of 2024 and decreased net earnings attributable to the Company by $30 million, or $0.19 per share, in the first six months of 2023.
Current wording
For the first nine months of 2024, the Company recorded net earnings attributable to the Company of $48 million, or $0.31 per share (diluted), compared to net earnings attributable to the Company of $367 million, or $2.31 per share (diluted), in the first nine months of 2023. As discussed below, net earnings attributable to the Company in the first nine months of 2024 and 2023 included items that management considers not representative of ongoing operations and other adjustments. These items decreased net earnings attributable to the Company by $86 million, or $0.54 per share, in the first nine months of 2024 and decreased net earnings attributable to the Company by $105 million, or $0.66 per share, in the first nine months of 2023.
Previous wording
Results of Operations — First Six Months of 2024 Compared with First Six Months of 2023
Current wording
Results of Operations — First Nine Months of 2024 Compared with First Nine Months of 2023
Previous wording
The Company’s net sales in the first six months of 2024 were $3,322 million compared with $3,721 million in the first six months of 2023, a decrease of $399 million, or 11%. Lower average selling prices decreased net sales by $53 million in the first six months of 2024. Glass container shipments, in tons, declined approximately 8.5% in the first half of 2024, which decreased net sales by approximately $375 million compared to the same period in the prior year. This decline resulted from destocking across the value chain, as the Company’s customers, distributors and retailers adjusted their inventory management practices to lower levels and soft consumer consumption activity. As of the end of the second quarter of 2024, the Company believes that destocking activity has receded in all categories other than spirits which will likely continue through the end of 2024. Favorable foreign currency exchange rates increased net sales by
Current wording
The Company’s net sales in the first nine months of 2024 were $5,002 million compared with $5,464 million in the first nine months of 2023, a decrease of $462 million, or 9%. Lower average selling prices decreased net sales by $125 million in the first nine months of 2024. Glass container shipments, in tons, declined approximately 5% in the first nine months of 2024, which decreased net sales by approximately $341 million compared to the same period in the prior year. This decline resulted from destocking across the value chain, as the Company’s customers, distributors and retailers adjusted their inventory management practices to lower levels and soft consumer consumption activity. As of the end of the third quarter of 2024, the Company believes that destocking activity has receded in all categories other than spirits which will likely continue through the end of 2024. Favorable foreign currency exchange rates increased net sales by $4 million in the first nine months of 2024 compared to the same period in the prior year.
Previous wording
Americas: Net sales in the Americas in the first six months of 2024 were $1,753 million compared to $1,996 million for the first six months of 2023, a decrease of $243 million, or 12%. Slightly higher selling prices in the region increased net sales by $19 million in the first half of 2024, driven by the pass through of higher cost inflation. Glass container shipments in the region were down approximately 12% in the first half of 2024 compared to the same period in the prior year, which decreased net sales by approximately $296 million. The decline in sales resulted from destocking activity, especially related to wine, spirits and beer customers, and soft consumer consumption. The favorable effects of foreign currency exchange rate changes increased net sales by $34 million in the first half of 2024 compared to the same period in prior year, as the Brazilian Real and Mexican Peso strengthened compared to the U.S. dollar.
Current wording
Americas: Net sales in the Americas in the first nine months of 2024 were $2,693 million compared to $2,943 million for the first nine months of 2023, a decrease of $250 million, or 9%. Slightly higher selling prices in the region increased net sales by $13 million in the first nine months of 2024, driven by the pass through of higher cost inflation. Glass container shipments in the region were down approximately 6% in the first nine months of 2024 compared to the same period in the prior year, which decreased net sales by approximately $252 million. The decline in sales resulted from destocking activity, especially related to wine, spirits and beer customers, and soft consumer consumption. The unfavorable effects of foreign currency exchange rate changes decreased net sales by $11 million in the first nine months of 2024 compared to the same period in prior year, as the Brazilian Real and Mexican Peso weakened compared to the U.S. dollar.
Previous wording
Europe: Net sales in Europe in the first six months of 2024 were $1,511 million compared to $1,662 million in the first six months of 2023, a decrease of $151 million, or 9%. Lower average selling prices in Europe decreased net sales by $72 million in the first half of 2024. Glass container shipments declined by approximately 5% in the first six months of 2024, primarily due to destocking activity, especially related to wine, spirits and beer customers, and soft consumer consumption. Lower shipments in the first half of 2024 decreased net sales by approximately $79 million compared to the same period in prior year.
Current wording
Europe: Net sales in Europe in the first nine months of 2024 were $2,216 million compared to $2,428 million in the first nine months of 2023, a decrease of $212 million, or 9%. Lower average selling prices in Europe decreased net sales by $138 million in the first nine months of 2024. Glass container shipments declined by approximately 4% in the first nine months of 2024, primarily due to destocking activity, especially related to wine, spirits and beer customers, and soft consumer consumption. Lower shipments in the first nine months of 2024 decreased net sales by approximately $89 million compared to the same period in prior year. The favorable effects of foreign currency exchange rate changes increased net sales by $15 million in the first nine months of 2024 compared to the same period in prior year, as the Euro strengthened compared to the U.S. dollar.
Previous wording
Earnings before income taxes were $221 million in the first half of 2024 compared to $424 million in the first half of 2023, a decrease of $203 million. This decrease was due to lower segment operating profit, partially offset by lower interest expense and retained corporate and other costs.
Current wording
Earnings before income taxes were $163 million in the first nine months of 2024 compared to $506 million in the first nine months of 2023, a decrease of $343 million. This decrease was due to lower segment operating profit and higher legacy environmental charges, partially offset by lower interest expense and retained corporate and other costs.
Previous wording
Segment operating profit of reportable segments in the first half of 2024 was $468 million, compared to $724 million in the first half of 2023, a decrease of $256 million, or 35%. This decrease was primarily due to lower shipments, lower net prices and higher operating costs due to lower production volumes driven by temporary curtailments of production to balance with lower demand, lower earnings from joint ventures and the non-recurrence of an energy subsidy received in the prior year.
Current wording
Segment operating profit of reportable segments in the first nine months of 2024 was $612 million, compared to $1,025 million in the first nine months of 2023, a decrease of $413 million, or 40%. This decrease was primarily due to lower shipments, lower net prices (net of cost inflation) and higher operating costs. The higher operating costs were primarily due to lower production volumes driven by temporary curtailments of production to balance with lower demand, lower earnings from joint ventures and the non-recurrence of an energy subsidy received in the prior year, partially offset by effective operating and cost management.
Previous wording
Americas: Segment operating profit in the Americas in the first six months of 2024 was $208 million, compared to $303 million in the first six months of 2023, a decrease of $95 million, or 31%. The impact of lower shipments discussed above resulted in a $56 million decrease to segment operating profit in the first half of 2024 compared to the same period in 2023. Operating costs in the first half of 2024 were $46 million higher than in the same period in the prior year. The increase in operating costs was primarily due to lower production volumes, driven by temporary curtailments of production to balance with lower demand, partially offset by margin expansion initiatives, including approximately $31 million of lower operating costs as a result of the region’s restructuring actions taken in 2023 (in line with management’s expectations). Higher cost inflation slightly exceeded higher selling prices and resulted in a $1 million decrease to segment operating profit in the first half of 2024. The effects of foreign currency exchange rates increased segment operating profit by $8 million in the first six months of 2024.
Current wording
Americas: Segment operating profit in the Americas in the first nine months of 2024 was $296 million, compared to $419 million in the first nine months of 2023, a decrease of $123 million, or 29%. The impact of lower shipments discussed above resulted in a $42 million decrease to segment operating profit in the first nine months of 2024 compared to the same period in 2023. Operating costs in the first nine months of 2024 were $63 million higher than in the same period in the prior year. The increase in operating costs was primarily due to lower production volumes, driven by temporary curtailments of production to balance with lower demand, partially offset by effective operating and cost management, including approximately $50 million of lower operating costs as a result of the region’s restructuring actions taken in 2023 (in line with management’s expectations). Higher cost inflation slightly exceeded higher selling prices and resulted in a $25 million decrease to segment operating profit in the first nine months of 2024. The effects of foreign currency exchange rates increased segment operating profit by $7 million in the first nine months of 2024.
Previous wording
In order to better match production to customer demand, management has implemented temporary production curtailments in the region. This initiative has resulted in higher operating costs in the first six months of 2024 due to unabsorbed fixed costs. Temporary production curtailments will continue during 2024, and this is expected to increase operating costs. In addition, the Company will continue to monitor business trends and consider whether any indefinite or permanent capacity closures in the Americas will be necessary in the future to align its business with demand trends. Any indefinite or permanent capacity closures could result in material restructuring and impairment charges, as well as cash expenditures, in future periods.
Current wording
In order to better match production to customer demand, management has implemented temporary production curtailments in the region. This initiative has resulted in higher operating costs in the first three quarters of 2024 due to unabsorbed fixed costs. Temporary production curtailments will continue during the fourth quarter of 2024, and this is expected to increase operating costs. In addition, in the third quarter of 2024 the Company announced the permanent closure of five furnaces. The Company will continue to monitor business trends and consider whether any additional indefinite or permanent capacity closures in the Americas will be necessary in the future to align its business with demand trends. Any indefinite or permanent capacity closures could result in material restructuring and impairment charges, as well as cash expenditures, in future periods.
Previous wording
Europe: Segment operating profit in Europe in the first six months of 2024 was $260 million compared to $421 million in the first six months of 2023, a decrease of $161 million, or 38%. The impact of lower shipments discussed above decreased segment operating profit by approximately $18 million. Operating costs in the first half of 2024 were $84 million higher than in the prior year period. Operating costs were impacted in the first half of 2024 by lower production volumes, driven by temporary production curtailments to balance supply with demand, lower earnings from joint ventures and the non-recurrence of approximately $16 million in subsidies received from the Italian government to help mitigate the impact of elevated energy costs in the first half of 2023, partially offset by benefits from margin expansion initiatives. Lower selling prices decreased segment operating profit by $56 million in the first six months of 2024 compared to the same period in the prior year. The effects of foreign currency exchange rates slightly decreased segment operating profit by $4 million in the first six months of 2024.
Current wording
Europe: Segment operating profit in Europe in the first nine months of 2024 was $316 million compared to $606 million in the first nine months of 2023, a decrease of $290 million, or 48%. The impact of lower shipments discussed above decreased segment operating profit by approximately $21 million. Operating costs in the first nine months of 2024 were $158 million higher than in the prior year period. Operating costs were impacted in the first nine months of 2024 by lower production volumes, driven by temporary production curtailments to balance supply with demand, lower earnings from joint ventures and the non-recurrence of approximately $16 million in subsidies received from the Italian government to help mitigate the impact of elevated energy costs in the first nine months of 2023, partially offset by benefits from effective operating and cost management. Lower net selling prices (net of cost inflation) decreased segment operating profit by $111 million in the first nine months of 2024 compared to the same period in the prior year. The effects of foreign currency exchange rates decreased segment operating profit by $1 million in the first nine months of 2024.
Previous wording
In order to better match production to customer demand, management has implemented temporary production curtailments in the region. This initiative has resulted in higher operating costs in the first six months of 2024 due to unabsorbed fixed costs. Temporary production curtailments will continue during 2024, and this is expected to increase operating costs. In addition, the Company will continue to monitor business trends and consider whether any indefinite or permanent capacity closures in Europe will be necessary in the future to align its business with demand trends. Any indefinite or permanent capacity closures could result in material restructuring and impairment charges, as well as cash expenditures, in future periods.
Current wording
Works Councils to permanently close several furnaces and eliminate a number of selling, general and administrative positions within the European segment. These discussions are dependent on the relevant country processes and are expected to conclude in the fourth quarter of 2024 or early 2025. The Company will continue to monitor business trends and consider whether any indefinite or permanent capacity closures in Europe will be necessary in the future to align its business with demand trends. Any indefinite or permanent capacity closures could result in material restructuring and impairment charges, as well as cash expenditures, in future periods.
Previous wording
advance of the period in which the natural gas will be delivered, which shields the Company from the full impact of increased natural gas prices, while such agreements remain in effect. The Company’s energy risk management approach is to have coverage of at least 40% of its expected total energy use over a medium-term horizon (approximately two years), where possible. However, the current conflict between Russia and Ukraine and the resulting sanctions, potential sanctions or other adverse repercussions on energy supplies could cause the Company’s energy suppliers to be unable or unwilling to deliver natural gas at agreed prices and quantities. If this occurs, it will be necessary for the Company to procure natural gas at then-current market prices and subject to market availability and could cause the Company to experience a significant increase in operating costs or result in the temporary or permanent cessation of delivery of natural gas to several of the Company’s manufacturing plants in Europe. In addition, depending on the duration and ultimate outcome of the conflict between Russia and Ukraine, future long-term supply arrangements for natural gas may not be available at reasonable prices or at all.
Current wording
In addition, the ongoing conflict between Russia and Ukraine has caused a significant change in the global gas market, resulting in a shift toward liquified natural gas. This transition has increased volatility in the market, as countries seek to diversify their energy sources and reduce dependance on traditional natural gas supplies. The Company’s European operations typically purchase natural gas under long-term supply arrangements with terms that range from one to five years and, through these agreements, typically agree on price with the relevant supplier in advance of the period in which the natural gas will be delivered, which shields the Company from the full impact of increased natural gas prices, while such agreements remain in effect. The Company’s energy risk management approach is to have coverage of at least 40% of its expected total energy use over a medium-term horizon (approximately two years), where possible. However, the current conflict between Russia and Ukraine and the resulting sanctions, potential sanctions or other adverse repercussions on energy supplies could cause the Company’s energy suppliers to be unable or unwilling to deliver natural gas at agreed prices and quantities. If this occurs, it will be necessary for the Company to procure natural gas at then-current market prices and subject to market availability and could cause the Company to experience a significant increase in operating costs or result in the temporary or permanent cessation of delivery of natural gas to several of the Company’s manufacturing plants in Europe. In addition, depending on the duration and ultimate outcome of the conflict between Russia and Ukraine, future long-term supply arrangements for natural gas may not be available at reasonable prices or at all.
Previous wording
Net interest expense in the first six months of 2024 was $165 million compared to $186 million for the first six months of 2023. The decrease wasprimarily due to $37 million in lower note repurchase premiums, write-offs of deferred finance fees and related charges, partially offset by higher interest rates.
Current wording
Net interest expense in the first nine months of 2024 was $252 million compared to $263 million for the first nine months of 2023. The decrease wasprimarily due to $37 million in lower note repurchase premiums, write-offs of deferred finance fees and related charges, partially offset by higher interest rates.
Previous wording
The Company’s effective tax rate from operations for the six months ended June 30, 2024 was 37.6% compared to 23.8% for the six months ended June 30, 2023. The effective tax rate for the first half of 2024 differed from the first half of 2023 due to a change in the mix of geographic earnings.
Current wording
The Company’s effective tax rate from operations for the nine months ended September 30, 2024 was 62.6% compared to 25.1% for the nine months ended September 30, 2023. The effective tax rate for the first nine months of 2024 differed from the first nine months of 2023 due to a net unfavorable tax rate on restructuring charges and a change in the mix of geographic earnings.
Previous wording
For the first six months of 2024, the Company recorded net earnings attributable to the Company of $129 million, or $0.81 per share (diluted), compared to $316 million, or $1.98 per share (diluted), in the first six months of 2023. Earnings in the first half of 2024 and 2023 included items that management considers not representative of ongoing operations and other adjustments as set forth in the following table (dollars in millions).
Current wording
For the first nine months of 2024, the Company recorded net earnings attributable to the Company of $48 million, or $0.31 per share (diluted), compared to $367 million, or $2.31 per share (diluted), in the first nine months of 2023. Earnings in the first nine months of 2024 and 2023 included items that management considers not representative of ongoing operations and other adjustments as set forth in the following table (dollars in millions).
Previous wording
Retained corporate costs and other for the second quarter of 2024 were $32 million compared to $54 million in the second quarter of 2023 and were $72 million for the first six months of 2024 compared to $114 million for the first six months of 2023. These costs decreased in the second quarter and first six months of 2024 primarily due to lower management incentive expense and lower spending.
Current wording
Retained corporate costs and other for the third quarter of 2024 were $31 million compared to $60 million in the third quarter of 2023 and were $104 million for the first nine months of 2024 compared to $175 million for the first nine months of 2023. These costs decreased in the third quarter and first nine months of 2024 primarily due to lower management incentive expense and lower spending.
Previous wording
The Company has initiated a strategic review of the remaining businesses in the former Asia Pacific region. This review is aimed at exploring options to maximize share owner value, focused on aligning the Company’s business with demand trends and improving the Company’s operating efficiency, cost structure and working capital management. The review is ongoing and may result in divestitures, corporate transactions or similar actions, and could cause the Company to incur restructuring, impairment, disposal or other related charges in future periods.
Current wording
The Company has initiated a strategic review of the remaining businesses in the former Asia Pacific region. This review is aimed at exploring options to maximize share owner value, focused on aligning the Company’s business with demand trends and improving the Company’s operating efficiency, cost structure and working capital management. The
Previous wording
From December 31, 1956 through June 1967, the Company, via a wholly-owned subsidiary, owned and operated a paper mill located on the shore of the Cuyahoga River in Ohio, which is now part of the Cuyahoga Valley National Park that is managed by the National Park Service (“NPS”). The Company and the United States are currently engaged in litigation regarding the site in the U.S. District Court for the Northern District of Ohio (Akron), with the United States claiming that the Company should pay $50 million as a remedy for certain soils at the site as well as its past and anticipated future costs. The Company undertook sampling at the site in 2024 and has proposed settling this matter and has recorded a charge of $10 million in the second quarter of 2024 as its best estimate of this liability based on current information. This charge was recorded to Other expense, net on the Condensed Consolidated Results of Operations. While the Company believes it has meritorious defenses against this suit, if the proposed settlement is not accepted by the NPS and the lawsuit proceeds, the ultimate resolution of this matter could result in a loss in excess of the amount currently accrued.
Current wording
From December 31, 1956 through June 1967, the Company, via a wholly-owned subsidiary, owned and operated a paper mill located on the shore of the Cuyahoga River in Ohio, which is now part of the Cuyahoga Valley National Park that is managed by the National Park Service (“NPS”). The Company and the United States are currently engaged in litigation regarding the site in the U.S. District Court for the Northern District of Ohio (Akron), with the United States claiming that the Company should pay $50 million as a remedy for certain soils at the site as well as its past and anticipated future costs. The Company undertook sampling at the site in 2024 and has proposed settling this matter and has recorded charges of $1 million and $11 million in the third quarter of 2024 and the first nine months of 2024, respectively, as its best estimate of this liability based on current information. These charges were recorded to Other expense, net on the Condensed Consolidated Results of Operations. While the Company believes it has meritorious defenses against this suit, if the proposed settlement is not accepted by the NPS and the lawsuit proceeds, the ultimate resolution of this matter could result in a loss in excess of the amount currently accrued.
Previous wording
At June 30, 2024, the Credit Agreement includes a $300 million revolving credit facility, a $950 million multicurrency revolving credit facility and $1.45 billion in term loan A facilities ($1.39 billion outstanding balance at June 30, 2024, net of debt issuance costs). At June 30, 2024, the Company had unused credit of $1.24 billion available under the revolving credit facilities as part of the Credit Agreement. The weighted average interest rate on borrowings outstanding under the Credit Agreement at June 30, 2024 was 6.87%.
Current wording
At September 30, 2024, the Credit Agreement includes a $300 million revolving credit facility, a $950 million multicurrency revolving credit facility and $1.45 billion in term loan A facilities ($1.39 billion outstanding balance at September 30, 2024, net of debt issuance costs). At September 30, 2024, the Company had unused credit of $1.24 billion available under the revolving credit facilities as part of the Credit Agreement. The weighted average interest rate on borrowings outstanding under the Credit Agreement at September 30, 2024 was 6.37%.
Previous wording
Working capital was a use of cash of $439 million in the first six months of 2024, compared to a use of cash of $541 million in the same period in 2023, with both periods reflecting higher inventories compared to the preceding year end period. The Company’s use of its accounts receivable factoring programs resulted in an increase to cash provided by operating activities of approximately $90 million and $21 million for the six months ended June 30, 2024 and June 30, 2023, respectively. Excluding the impact of accounts receivable factoring, the Company’s days sales outstanding as of June 30, 2024 were comparable to June 30, 2023. In addition, the Company paid a one-time, previously accrued tax settlement of approximately $30 million in the second quarter of 2024.
Current wording
Working capital was a use of cash of $359 million in the first nine months of 2024, compared to a use of cash of $416 million in the same period in 2023, with both periods reflecting lower accounts payable compared to the preceding year end period. Working capital for the nine months ended September 30, 2024 reflects higher accounts receivable compared to the preceding year end period. The Company’s use of its accounts receivable factoring programs resulted in an increase to cash provided by operating activities of approximately $2 million and $1 million for the nine months ended September 30, 2024 and September 30, 2023, respectively. Excluding the impact of accounts receivable factoring, the Company’s days sales outstanding as of September 30, 2024 were slightly higher compared to September 30, 2023. In addition, the Company paid a one-time, previously accrued tax settlement of approximately $30 million in the second quarter of 2024.
Previous wording
Investing activities: Cash utilized in investing activities was $380 million for the six months ended June 30, 2024, compared to $266 million of cash utilized by investing activities for the six months ended June 30, 2023. Capital spending for property, plant and equipment was $373 million during the first six months of 2024, compared to $268 million in the same period in 2023, driven by higher spending on a new plant that the Company is constructing in Bowling Green, Kentucky and several other expansion projects. The Company estimates that its full year 2024 capital expenditures should be approximately$550 million to $575 million.
Current wording
Investing activities: Cash utilized in investing activities was $506 million for the nine months ended September 30, 2024, compared to $457 million of cash utilized by investing activities for the nine months ended September 30, 2023. Capital spending for property, plant and equipment was $509 million during the first nine months of 2024, compared to $465 million in the same period in 2023, driven by higher spending on a new plant that the Company constructed in Bowling Green, Kentucky and several other expansion projects. The Company estimates that its full year 2024 capital expenditures should be approximately$550 million.
Previous wording
Financing activities: Cash provided by financing activities was $180 million and $132 million for the six months ended June 30, 2024 and June 30, 2023, respectively. During each of the six-month periods ended June 30, 2024 and 2023, the Company repurchased $20 million of its common stock. The Company paid approximately $11 million and $20 million for the six-month periods ended June 30, 2024 and 2023, respectively, for finance fees. The Company paid approximately $40 million related to hedge activity for the six months ended June 30, 2023.
Current wording
Financing activities: Cash provided by financing activities was $184 million and $31 million for the nine months ended September 30, 2024 and September 30, 2023, respectively. Financing activities included additions to long-term debt of $1,096 million and $1,332 million for the nine-month periods ending September 30, 2024 and September 30, 2023, respectively. Financing activities included repayments of long-term debt of $923 million and $1,258 million for the nine-month periods ending September 30, 2024 and September 30, 2023, respectively. During each of the nine-month periods ended September 30, 2024 and 2023, the Company repurchased $30 million of its common stock. The Company paid approximately $13 million and $22 million for the nine-month periods ended September 30, 2024 and 2023, respectively, for finance fees. The Company paid approximately $40 million related to hedge activity for the nine months ended September 30, 2023.
Showing the first 40 of 41 pairs. Open the source sections for the rest.
Rearranged current paragraphs (1)
Current report — wording carried from elsewhere
review is ongoing and may result in divestitures, corporate transactions or similar actions, and could cause the Company to incur restructuring, impairment, disposal or other related charges in future periods.
Rearranged previous paragraphs (4)
Previous report — wording carried elsewhere
Americas: Net sales in the Americas in the second quarter of 2024 were $899 million compared to $996 million in the second quarter of 2023, a decrease of $97 million, or 10%. Slightly higher selling prices in the region increased net sales by $13 million in the second quarter of 2024, driven by the pass through of higher cost inflation. Glass container shipments in the region were down approximately 8.5% in the second quarter of 2024 compared to the same period in the prior year, which decreased net sales by approximately $109 million. The decline in sales were driven by lower
Previous report — wording carried elsewhere
In order to better match production to customer demand, management has implemented temporary production curtailments in the region. This initiative has resulted in higher operating costs in the second quarter of 2024 due to
Previous report — wording carried elsewhere
In addition, the ongoing conflict between Russia and Ukraine has caused a significant change in the global gas market, resulting in a shift toward liquified natural gas. This transition has increased volatility in the market, as countries seek to diversify their energy sources and reduce dependance on traditional natural gas supplies. The Company’s European operations typically purchase natural gas under long-term supply arrangements with terms that range from one to five years and, through these agreements, typically agree on price with the relevant supplier in
Previous report — wording carried elsewhere
Net Earnings Attributable to the Company