O-I Glass cuts FY24 adjusted EPS view to 70c-80c from $1.00-$1.25

Consensus $1.13. Cuts FY24 sales volume view to down low-single digits to down mid-single digits from flat to down low-single digits. The company said, “The company has revised its full year guidance given softer than anticipated market demand. Management now expects 2024 adjusted earnings per share will be between $0.70 and $0.80, down from the previous guidance of $1.00 to $1.25 per share. This updated guidance reflects lower than anticipated shipment levels for the year, additional temporary production curtailment to reduce inventory levels amid softer demand in the remainder of 2024, and a higher effective tax rate due to lower earnings. Actions to optimize inventory and O-I’s manufacturing network are required to accelerate and reshape the company’s cost profile to deliver better, more sustainable results in 2025 and beyond. Management has also revised its full-year free cash flow outlook to a use of cash between $130 and $170 million, due to softer shipments resulting in lower adjusted earnings and higher working capital, as well as $30 million in accelerated restructuring costs. Free cash flow is expected to decline from the previous year and includes the impact of higher interest and tax payments, as well as temporary production curtailments and Fit To Win restructuring actions to boost 2025 performance.”