Shares of O-I Glass (OI -15.01%), a leading maker of glass bottles and containers, were moving lower today after the company came up short in its second-quarter earnings report.
As of 1:41 p.m. ET, the stock was down 17.4% on the news.
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What happened with O-I Glass
Overall revenue was down 2% to $1.67 billion, just shy of expectations at $1.69 billion.
Bottom-line results were even more disappointing as adjusted earnings per share fell from $0.53 to $0.09, well below the consensus at $0.26 per share. Management cited operational challenges in Europe, including competitive pricing pressure, elevated energy costs, and a temporary disruption in operations due to restructuring. Operating profit in Europe was just $6 million, while operating profit in the Americas increased 22% to $165 million, with a 17.4% operating margin.
Management credited its Fit to Win cost-savings program for delivering strong results in the Americas. The company also took a $873 million goodwill impairment charge in Europe due to a decline in its stock price, weaker results, and a lower outlook in Europe.
NYSE: OI
Key Data Points
What's next for O-I Glass
Looking ahead to the rest of the year, O-I cut its guidance. The company now sees adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) of $1 billion-$1.1 billion for the year, down from an earlier target of $1.125 billion-$1.225 billion, due to the challenges in Europe.
It also lowered its adjusted EBITDA target for 2027 as it now sees $1.2 billion-$1.3 billion in adjusted EBITDA, compared to an earlier forecast of $1.45 billion.
Given that, it's not surprising to see the stock down double digits today.
