O-I Glass Earnings: Global Glass Demand Remains Mixed, but Cost-Saving Initiatives Offer Some Relief

Narrow-moat-rated O-I Glass reported mixed results in the fourth quarter as a recovery in the Americas was somewhat offset by weakness in Europe. Net sales fell 7% year over year due to lower selling prices across much of the company’s portfolio. O-I reported a $0.05 per share loss in the fourth quarter, which was driven by costs related to temporary production curtailments as O-I worked to manage its built-up inventory. We are encouraged by the progress O-I continues to make in its portfolio realignment and cost-management initiatives but softening demand in Europe has raised some near-term concerns. As such, we have maintained our $22 per share fair value estimate.