O-I Glass Reports Exit Costs & Impairments

TL;DR

O-I Glass taking big hits on asset sales/closures, expect costs.

AI Summary

On October 21, 2024, O-I Glass, Inc. reported significant events related to "Cost Associated with Exit or Disposal Activities" and "Material Impairments." The filing indicates that the company is undergoing restructuring or divesting certain operations, which will likely result in substantial costs and potential write-downs of assets. Specific financial figures and the exact nature of the disposal activities are detailed within the full filing.

Why It Matters

This filing signals potential financial restructuring and asset write-downs for O-I Glass, which could impact its future profitability and operational focus.

Risk Assessment

Risk Level: medium — The filing indicates significant costs associated with exit or disposal activities and material impairments, suggesting potential financial strain or strategic shifts.

Key Numbers

• 2024-10-21 — Date of Report (Earliest event reported)
• 2024-10-22 — Filing Date (Date the report was submitted)

Key Players & Entities

• O-I Glass, Inc. (company) — Registrant
• Delaware (jurisdiction) — State of incorporation
• Perrysburg, Ohio (location) — Principal executive offices

FAQ

Key Financial Figures

• $39 million — ated with this closure of approximately $39 million in the third quarter of 2024. Major com
• $24 million — nts of the charge include approximately $24 million for impairment of plant-related assets,
• $15 million — osed furnace and related machinery, and $15 million for one-time employee separation benefi
• $10 million — to the closing (of which approximately $10 million relate to future cash expenditures). I

Filing Documents

• tm2426587d1_8k.htm (8-K) — 32KB
• tm2426587d1_8kimg001.jpg (GRAPHIC) — 7KB
• 0001104659-24-110581.txt ( ) — 222KB
• oi-20241021.xsd (EX-101.SCH) — 3KB
• oi-20241021_lab.xml (EX-101.LAB) — 33KB
• oi-20241021_pre.xml (EX-101.PRE) — 22KB
• tm2426587d1_8k_htm.xml (XML) — 3KB

05. COSTS ASSOCIATED WITH EXIT OR DISPOSAL ACTIVITIES

ITEM 2.05. COSTS ASSOCIATED WITH EXIT OR DISPOSAL ACTIVITIES. On October 21, 2024, O-I Glass, Inc. (the "Company") finalized its plans for the closure of a furnace in its Americas segment. This closure is part of the Company's Fit to Win initiative to reduce redundant capacity and begin to optimize its network. Additional furnace closures and other restructuring actions are expected later in 2024. The furnace closure is expected to occur on or after November 18, 2024. The Company intends to facilitate the closure in a respectful manner for the approximately 150 people impacted. Current customers of the plant impacted by the furnace closure will be served by other domestic plants in the Company's network. the Company expects to record a charge associated with this closure of approximately $39 million in the third quarter of 2024. Major components of the charge include approximately $24 million for impairment of plant-related assets, such as the closed furnace and related machinery, and $15 million for one-time employee separation benefits and other costs related to the closing (of which approximately $10 million relate to future cash expenditures).

06. MATERIAL IMPAIRMENTS

ITEM 2.06. MATERIAL IMPAIRMENTS. The disclosure included under Item 2.05 is incorporated by reference into this Item 2.06.

Forward-Looking Statements

Forward-Looking Statements This Current Report on Form 8-K contains "forward-looking" statements related to the Company within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended, and Section 27A of the Securities Act of 1933, as amended. Forward-looking statements reflect the Company's current expectations and projections about future events at the time, and thus involve uncertainty and risk. The words "expect," "intend," "will," "anticipate" and other similar expressions generally identify forward-looking statements. It is possible that the Company's future results may differ from expectations due to a variety of factors including, but not limited to: (1) the general political, economic and competitive conditions in markets and countries where the Company has operations, including uncertainties related to economic and social conditions, trade disputes, disruptions in the supply chain, competitive pricing pressures, inflation or deflation, changes in tax rates and laws, war, civil disturbance or acts of terrorism, natural disasters, public health issues and weather, (2) cost and availability of raw materials, labor, energy and transportation (including impacts related to the current Ukraine-Russia and Israel-Hamas conflicts and disruptions in supply of raw materials caused by transportation delays), (3) competitive pressures from other glass container producers and alternative forms of packaging or consolidation among competitors and customers, (4) changes in consumer preferences or customer inventory management practices, (5) the continuing consolidation of the Company's customer base, (6) the Company's ability to improve its glass melting technology, known as the MAGMA program, and implement it within the timeframe expected, (7) unanticipated supply chain and operational disruptions, including higher capital spending, (8) the Company's ability to achieve expected benefits from margin expansion and profitability initiatives, such as it

SIGNATURES

SIGNATURES Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized. Date: October 22, 2024 O-I GLASS, INC. By: /s/ John A. Haudrich John A. Haudrich Senior Vice President and Chief Financial Officer

View Full Filing

View this 8-K filing on SEC EDGAR