O-I Glass, the glass bottle and jar maker based in Perrysburg, Ohio, reported a loss of $470 million, or $3.05 per share, in the fourth quarter. This marks a significant decline from the $13 million profit, or 8 cents per share, recorded in the same period the previous year. The loss was mainly attributed to a substantial goodwill impairment charge of $445 million in O-I Glass's North America reporting unit, prompted by changes in macro conditions that resulted in lower sales volumes and a smaller asset base following restructuring efforts.
Despite the loss, O-I Glass managed to surpass analysts' expectations for adjusted per-share earnings. Excluding certain one-time items, the company reported adjusted earnings of 12 cents per share, exceeding the forecasted 3 cents per share by analysts polled by FactSet.
Although revenue declined from $1.69 billion to $1.64 billion year-over-year, it still exceeded analysts' expectations of $1.63 billion. The decrease in revenue was primarily driven by a 16% drop in sales volumes, partially offset by higher average selling prices.
Looking ahead, O-I Glass anticipates an increase in sales volumes of low- to mid-single-digits by 2024. The company also provided adjusted per-share profit guidance for this period, expecting to achieve $2.25 to $2.65 per share. This projection falls slightly below the $2.47 expected by analysts surveyed by FactSet.
In summary, O-I Glass faced challenges in Q4 due to a significant goodwill impairment charge and declining sales volumes. However, the company managed to surpass earnings expectations while maintaining a positive outlook for future sales volumes.