O-I Glass Inc ((OI)) has held its Q1 earnings call. Read on for the main highlights of the call.
O-I Glass Inc. recently held its first quarter 2025 earnings call, revealing a generally positive sentiment with a strong start to the year. The company reported better-than-expected earnings, buoyed by significant savings from its Fit to Win program and growth in the Americas. However, challenges in Europe and potential impacts from global trade policies were noted as concerns. Overall, the positive aspects slightly outweighed the negatives, though caution remains due to external uncertainties.
Strong Start to 2025
O-I Glass reported adjusted earnings of $0.40 per share for the first quarter, surpassing management’s expectations. This achievement was driven by stronger-than-anticipated sales volume growth and $61 million in savings from the Fit to Win program.
Growth in the Americas
The Americas segment saw a significant improvement in operating profit, fueled by strong demand and stable net prices amid tight capacity. The region benefited from $27 million in Fit to Win savings, with shipments increasing by more than 4%.
Fit to Win Program Success
The Fit to Win program exceeded initial plans by generating $61 million in savings during the first quarter. The program aims to achieve $250 million in savings in 2025 and $650 million cumulatively by 2027, focusing on cost reduction and network optimization.
Inventory Reduction Achievements
O-I Glass successfully reduced inventory levels by $225 million compared to the same time last year, with a goal to achieve inventory days supply below 50 days by the end of 2025.
Challenges in Europe
The European segment faced challenges with lower net prices and temporary production downtime, resulting in $58 million of unabsorbed fixed costs. However, this was partially offset by $20 million in Fit to Win benefits.
Impact of Global Trade Policies
The company expressed concerns over uncertainties related to new global trade policies, such as tariffs. Approximately 4.5% of global sales volume is currently exposed to new tariffs, primarily affecting imports from Europe.
Slight Volume Decline in April
April volumes, adjusted for Easter, declined by about 1% to 2%, with a notable decrease in Europe, particularly in segments exposed to exports like wines and spirits.
Reaffirmed 2025 Guidance
O-I Glass reaffirmed its full-year 2025 guidance, projecting adjusted earnings to improve by 50% to 85% from fiscal year 2024, ranging between $1.20 and $1.50 per share. Despite challenges, the company remains confident in achieving its financial goals, supported by strategic initiatives and the Fit to Win program.
In conclusion, O-I Glass Inc.’s earnings call reflected a cautiously optimistic outlook for 2025. The company highlighted strong performance in the Americas and successful cost-saving initiatives, though challenges in Europe and global trade uncertainties remain. The reaffirmed guidance underscores the company’s confidence in its strategic direction and financial targets.