O-I Glass Inc Q1 2025 Earnings Call Transcript

The following is excerpted from the question-and-answer section of the transcript.

Question: George Staphos - BofA Global Research - Analyst : Thanks very much. Everyone, good morning. Thank you for the details. I guess the question I have to start is, can you talk a bit about any prebuy effects you've sort of touched on within Europe, what kind of volume effect might that be that has to reverse itself in the back half of the year or whenever? And then overall, can you talk a little bit about some of the work you're doing on TOE, in Toano and elsewhere, and why that supports your overall Fit to Win goals? So prebuy, and then TOE and what you're seeing in Toano. Thank you.

Question: George Staphos - BofA Global Research - Analyst : Hey, Gordon. Just quickly, April, you said softened. So are we looking at negative volumes to get to a year-to-date growth rate of 3% from up 4%? Or just maybe another kind of detail there.

Question: George Staphos - BofA Global Research - Analyst : Thank you, Gordon. I just mentioned because Toano is one of your better plants over the years, but I'll turn it over. Thanks very much.

Question: Mike Roxland - Truist Securities - Analyst : Thank you, Gordon, John, and Chris for taking my questions. And congrats on all the progress on the nice quarter. My first question is just on a follow-up to what George was asking about with respect to volumes. Can you give us a sense, just in terms of the volume progress that you're seeing by end market, whether it be wine, spirits, beer, NAB, just want to get a sense of the growth or the headwinds that you may be encountering in some of those end markets? And where do order book stand currently? So any outlook you can share with respect to how early read on May, for instance? REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies.

Question: Mike Roxland - Truist Securities - Analyst : That's great, Gordon. Thank you for all the color. And just one quick follow-up. You're looking to streamline your French operations, given the slowdown in wine. Now is that a structural issue, just related to French wines? Is that a structural issue for all wines? Does it relate to more mainstream wine brands versus, let's say, premium products in terms of -- when I say premium products, it would be like top regions, top brands. So just wanting to get a sense of what you're trying to do with your French operations and really what the driver is there in terms of your realignment?

Question: Anojja Shah - UBS - Analyst : It's Anojja Shah, sitting in for Josh. On slide 8, you mentioned tariffs on aluminum as an opportunity, one of the opportunities of tariffs. Have you seen signs of this yet with customers, where this could potentially be of benefit, like maybe you're having introductory conversations about substrates? Or just any color on what you're seeing there and how you think it might benefit you?

Question: Anojja Shah - UBS - Analyst : Great, thank you. That's very helpful. I'll turn it over.

Question: Anthony Pettinari - Citi - Analyst : Good morning. In Europe, you have year-over-year headwinds for net price and then operating costs with the curtailments in 1Q. As you envision the year, can you talk about maybe the cadence of how you'd expect those headwinds to trend and ultimately inflect over the four quarters of the year?

Question: Anthony Pettinari - Citi - Analyst : Got it. That's very helpful. And then just a quick follow-up. You talked about tariff impacts and competitive intensity with aluminum, which I guess is maybe too soon to tell. But in the US, can you talk about how fewer Chinese bottles -- fewer Chinese imports, how you're seeing that impact the market this year?

Question: Anthony Pettinari - Citi - Analyst : Got it. And do you think those inventories potentially they run down by the summer? Is it a few months or a few quarters? Or any framing there?

Question: Anthony Pettinari - Citi - Analyst : Got it. I'll turn it over.

Question: Arun Viswanathan - RBC Capital Markets - Analyst : Great, thanks for taking my question. So just congrats on the strong progress thus far. I guess maybe you can just review what you're hearing from some of your customers on the spirits side in North America. I know there's been some volatility there. I guess, globally as well, that would be helpful. Thanks. REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies.

Question: Arun Viswanathan - RBC Capital Markets - Analyst : Thanks John. Yeah. And I guess I also had some questions on the raw side. Maybe just give us some thoughts on how you're thinking about your energy hedges as it relates to natural gas, as well as potentially your sourcing of [coal] and soda ash, if there's anything we need to be mindful of on that side. Thanks.

Question: Gabe Hajde - Wells Fargo Securities, LLC - Analyst : Gordon, John, Chris, good morning. Thanks for taking the question.

Question: Gabe Hajde - Wells Fargo Securities, LLC - Analyst : Well, I joined a moment late, so I apologize if you guys addressed this. I didn't see you call out any sort of curtailments in the Americas. So A, confirm that; B, I think I heard the word tight-ish across the production system. Is that true across the specific geographies, US, Mexico and Brazil? And then maybe what are you seeing, I know we're going into the winter months, but any discussion with your customers in terms of kind of cadence for the back half of the year?

Question: Gabe Hajde - Wells Fargo Securities, LLC - Analyst : Okay. And then, John, I think you kind of mentioned, and I fully appreciate being cautious and pragmatic here, given the macro. But kind of if we were to free things today, tracking towards the upper end of the range, based on kind of what you expect through the first half. I also know that you guys have talked about trying to reduce the volatility in earnings and produce closer to sell, maybe not hang on to as much inventory. I think I know Gordon, you talked about that. REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies.