O-I Reports 3Q 2020 Results

O-I Glass, Inc. reported financial results for the third quarter ended Sept. 30, 2020.

Net sales in the third quarter of 2020 were $1.6 billion compared to $1.7 billion in the prior year as net sales declined $76 million attributed to the divestment of ANZ. After adjusting for the sale of ANZ, aver-age selling prices improved by nearly 1% and increased revenue by $12 million. Segment operating profit was $204 million in the third quarter of 2020 compared to $206 million in the prior year.

“After a very challenging second quarter due to the pandemic, earnings rebounded strongly during the third quarter. Sales volumes recovered very well reflecting consumers’ affinity for healthy and sustain-able glass packaging. Likewise, continued strong operating performance substantially offset the impact of lower production levels as capacity was gradually restarted following a disruptive second quarter. Despite the ongoing pandemic, the company generated strong operating results and continued favorable cash flow,” said Andres Lopez, O-I CEO. 

For the third quarter 2020, earnings from continuing operations were $2.06 per share (diluted) compared with a loss of $3.69 per share in the third quarter of 2019. Current year earnings from continuing operations before income taxes were $376 million, compared to a loss of $536 million in the prior year. 2020 results included an approximately $280 million net gain on the sale of O-I’s ANZ business unit.

Cash provided by continuing operating activities in the third quarter 2020 was $262 million compared to $416 million in the prior year.

O-I reported $205 million of free cash flow in the third quarter of 2020 compared to $316 million in 2019. Adjusted for changes in accounts receivable factoring levels, free cash flow was $96 million favor-able compared to the prior year. Total debt was $5.4 billion at September 30, 2020 compared to $6.5 billion at June 30, 2020 and $5.9 billion at Sept. 30, 2019.