Company Reports

O-I Glass is one of the world's largest glass container manufacturers, with furnaces in North America, South America, and Europe. It turns molten glass into containers for beer, wine, spirits, and food, using standard and custom molds for a wide variety of customers. O-I operates roughly 70 glass plants and serves customers across the world, with the US its largest region at about 30% of sales. In the past few years, O-I has gone through a portfolio-optimization plan to increase its focus on its glass container business and prioritized regions. As part of this plan, O-I divested its tabletop glass business as well as its Australia and New Zealand operations and is using the proceeds to fund capacity expansion and modernization projects.

O-I Glass is one of the world's largest glass container manufacturers, with furnaces in North America, South America, and Europe. It turns molten glass into containers for beer, wine, spirits, and food, using standard and custom molds for a wide variety of customers. O-I operates roughly 70 glass plants and serves customers across the world, with the U.S. accounting for its largest region at about 30% of sales. In the past few years, O-I has gone through a portfolio-optimization plan to increase its focus on its glass container business and prioritized regions. As part of this plan, O-I divested its tabletop glass business as well as its Australia and New Zealand operations and is using the proceeds to fund capacity expansion and modernization projects.

Narrow-moat-rated O-I Glass reported fourth-quarter results that capped off a challenging year for the glass packaging producer. The company navigated a handful of challenges in 2023 as persistent inventory destocking and softening consumer spending in many of its end markets weighed on volume. Net sales in the fourth quarter declined 3% year over year despite a 16% drop in volume, largely due to strong price growth. Management said O-I will likely experience the inverse in 2024, as it anticipates some volume growth but expects to lose price on some annual contracts with customers. As such, we've decreased our fair value estimate to $25 per share from $26 to reflect lower near-term revenue in our forecast.

O-I Glass is one of the world's largest glass container manufacturers, with furnaces in North America, South America, and Europe. It turns molten glass into containers for beer, wine, spirits, and food, using standard and custom molds for a wide variety of customers. O-I operates roughly 70 glass plants and serves customers across the world, with the U.S. accounting for its largest region at about 30% of sales. In the past few years, O-I has gone through a portfolio-optimization plan to increase its focus on its glass container business and prioritized regions. As part of this plan, O-I divested its tabletop glass business as well as its Australia and New Zealand operations and is using the proceeds to fund capacity expansion and modernization projects.

Narrow-moat-rated O-I Glass reported underwhelming third-quarter results as persistent inventory destocking suppressed glass packaging demand. Net sales rose 3% year over year, largely due to strength in Europe, which offset steep declines in North America. O-I Glass continues to navigate a difficult operating environment as normalizing consumer demand and widespread inventory destocking weigh heavily on volumes. While we are encouraged by the company’s pricing gains in the quarter, we think most of its challenges will likely persist into 2024 before showing signs of improvement. As such, we've decreased our fair value estimate to $26 per share from $28 due to lower near-term revenue and profitability in our forecast.

O-I Glass is one of the world's largest glass-container manufacturers, with furnaces in North America, South America, and Europe. The company turns molten glass into containers for beer, wine, spirits, and food, using standard and custom molds for a wide variety of customers. O-I operates roughly 70 glass plants and serves customers across the world, with the U.S. accounting for its largest region at about 30% of sales. In the past few years, O-I has gone through a portfolio optimization plan to increase its focus on its glass-container business and prioritized regions. As part of this plan, O-I divested its tabletop glass business as well as its Australia and New Zealand operations and is using the proceeds to fund capacity expansion and modernization projects.

O-I Glass is one of the world's largest glass-container manufacturers, with furnaces in North America, South America, and Europe. The firm turns molten glass into containers for beer, wine, spirits, and food, using standard and custom molds for a wide variety of customers. O-I operates roughly 70 glass plants and serves customers across the world, with the U.S. accounting for its largest region at about 30% of sales. In the past few years, O-I has gone through a portfolio optimization plan to increase its focus on its glass-container business and prioritized regions. As part of this plan, O-I divested its tabletop glass business as well as its Australia and New Zealand operations and is using the proceeds to fund capacity expansion and modernization projects.

Narrow-moat-rated O-I Glass reported second-quarter results that were in line with our expectations. Like many other packaging companies, O-I’s quarter was negatively affected by customer destocking and normalizing consumer demand. Nevertheless, O-I reported a 6% increase in revenue year over year, as a 9% decline in volume was more than offset by a 13% increase in selling prices. Even with its robust pricing gains, O-I faces a challenging second half of the year amid inventory-management initiatives and constrained beverage demand. As such, we've decreased our fair value estimate to $28 per share from $30 due to lower near-term profitability in our forecast.

We are reinitiating coverage on O-I Glass with a fair value estimate of $30 per share. We assign the firm a narrow moat rating, and we believe the company primarily benefits from efficient scale and intangible asset moat sources. This is an upgrade from our prior rating as O-I resolved its asbestos liabilities in 2022 that previously raised concerns of material equity value destruction. O-I is one of the largest producers of glass containers in the world, mainly serving beverage end markets. The glass-container market is highly concentrated as most regions are typically serviced by a few large competitors that maintain long-standing customer relationships. The low value of glass containers combined with its significant weight limits transportation distances, which creates localized markets where producers possess strong pricing power.

O-I Glass is one of the world's largest glass-container manufacturers, with furnaces in North America, South America, and Europe. The firm turns molten glass into containers for beer, wine, spirits, and food, using standard and custom molds for a wide variety of customers. O-I operates roughly 70 glass plants and serves customers across the world, with the U.S. accounting for its largest region at about 30% of sales. In the past few years, O-I has gone through a portfolio optimization plan to increase its focus on its glass-container business and prioritized regions. As part of this plan, O-I divested its tabletop glass business as well as its Australia and New Zealand operations and is using the proceeds to fund capacity expansion and modernization projects.

We are dropping coverage of O-I Glass. We provide broad coverage of more than 1,500 companies globally and periodically adjust our coverage according to investor interest and staffing.

Although O-I Glass' results were satisfactory, they stood in stark contrast to those of its peers that manufacture aluminum beverage cans. People spent more time at home in the fourth quarter, requiring more food and beverage packaging than ever before. While can manufacturers have posted low-double-digit volume growth, O-I managed far more modest volume growth. Volumes were up just 2% in the Americas and down about 2.4% in Europe. To us, this suggests either relatively worse execution or favorable ESG tailwinds for aluminum. However, we still expect a rebound in 2021 results as on-premise drinking returns. We've modestly lowered our near-term profit forecasts for O-I, leading us to reduce our fair value estimate to $11.50 per share from $12. Our no-moat rating is unchanged. With shares trading only slightly above our fair value estimate, they look fairly valued at this time.

O-I Glass is one of the world's largest glass container manufacturers, with furnaces in North America, South America, Europe, Australia, and Asia. The firm turns molten glass into beer, wine, spirits, and food containers using standard and custom molds for a wide variety of customers. Diverse end uses and popularity among craft brewers should help to protect volume amid a decline in the popularity of mainstream beers. O-I's acquisition of Vitro broadens exposure to Latin America, one of the most profitable container regions in the world.

O-I Glass is one of the world's largest glass container manufacturers, with furnaces in North America, South America, Europe, Australia, and Asia. The firm turns molten glass into beer, wine, spirits, and food containers using standard and custom molds for a wide variety of customers. Diverse end uses and popularity among craft brewers should help to protect volume amid a decline in the popularity of mainstream beers. O-I's acquisition of Vitro broadens exposure to Latin America, one of the most profitable container regions in the world.

Even though O-I Glass' third-quarter results weren't as robust as those of Ball and Crown, the company is still having a better year than we had anticipated. Excluding its ANZ business' sale, quarterly shipments were up 1.7% from the prior-year period, and segment operating profit was roughly flat.

O-I Glass is one of the world's largest glass container manufacturers, with furnaces in North America, South America, Europe, Australia, and Asia. The firm turns molten glass into beer, wine, spirits, and food containers using standard and custom molds for a wide variety of customers. Diverse end uses and popularity among craft brewers should help to protect volume amid a decline in the popularity of mainstream beers. O-I's acquisition of Vitro broadens exposure to Latin America, one of the most profitable container regions in the world.

O-I Glass shares leaped higher, as earnings in the second quarter proved less dreary than the market expected. Sales volumes fell slightly less than we were expecting, and operating margins remained decent under the circumstances. The market was likely relieved to see $181 million in cash flow from operations, alleviating stress that the company may struggle to survive the crisis. However, our outlook for O-I's fundamentals remains essentially unchanged. We have left our $10 per share fair value estimate in place, along with our no-moat rating.

O-I Glass is one of the world's largest glass container manufacturers, with furnaces in North America, South America, Europe, Australia, and Asia. The firm turns molten glass into beer, wine, spirits, and food containers using standard and custom molds for a wide variety of customers. Diverse end uses and popularity among craft brewers should help to protect volume amid a decline in the popularity of mainstream beers. O-I's acquisition of Vitro broadens exposure to Latin America, one of the most profitable container regions in the world.

O-I Glass is one of the world's largest glass container manufacturers, with furnaces in North America, South America, Europe, Australia, and Asia. The firm turns molten glass into beer, wine, spirits, and food containers using standard and custom molds for a wide variety of customers. Diverse end uses and popularity among craft brewers should help to protect volume amid a decline in the popularity of mainstream beers. O-I's acquisition of Vitro broadens exposure to Latin America, one of the most profitable container regions in the world.