O-I Glass, Inc.

Ladies and gentlemen, thank you for standing by and welcome to the OIGlass third quarter 2021 earnings conference call. At this time, all participants are in a listen-only mode. After the speaker's presentation, there will be a question and answer session. To ask a question during the session, you will need to press star 1 on your telephone keypad. If you require any further assistance, please press star 0. I would now like to hand the conference over to your speaker today, Mr. Chris Manuel, Vice President of Investor Relations. Sir, please go ahead.

Thank you, Lawrence, and welcome everyone to the OIGlass third quarter conference call. Our discussion today will be led by Andres Lopez, our CEO, and John Hodrick, our CFO. Today we will discuss key business developments and review our financial results. Following prepared remarks, we will host a Q&A session. Presentation materials for this call are available on the company's website. Please review the Safe Harbor comments and disclosure of our use of non-GAAP financial measures included in those materials. I'd now like to turn the call over to Andres, who will start on slide three.

Andres Fernandez- Good morning, everyone. I appreciate your interest in Eyeglass. We are pleased to report our quarter adjusted earnings of 58 cents per share. Despite a number of macro challenges, OI is once again delivering on its commitments as earnings exceeded our guidance range. Demand for glass containers is strong, yet our shipments were down about 1% in the quarter due to choppy demand patterns, steaming from low inventory levels and ongoing global supply chain issues. On the other hand, production levels rebounded nicely from the prior year, which was impacted by the final stages of mandatory curtailments at the onset of the pandemic. Also, higher selling prices and the benefits of our revenue optimization initiative fully offset elevated cost inflation. Overall, better than expected results primarily reflected the strong operating performance and cost management enabled by our margin expansion initiatives. As we will discuss shortly, we're making great progress on our 2021 priorities, including today's announcement of intent to sell our Le Parfait brand and business and an attractive valuation as part of our portfolio optimization program. We are also accelerating OI's transformation as we chaired at our investor day last month. The combination of federal market conditions for glass containers, OI's ongoing transformation, and the introduction of magma is building the path to yes. Yes to an agile and resilient company. Yes to a new paradigm for glass. And yes to profitable growth. We are confident this plan will enhance value for all stakeholders and ensure sustainable prosperity for OI. If you haven't already, we encourage you to view our investor day presentation, which can be found on our website. Reflecting good momentum, we are increasing our full year earnings outlook. We now anticipate 2021 adjusted earnings will range between $1.77 and $1.82 per share and we expect at least $260 million of free cash flow. We expect four-quarter adjusted earnings will approximate 30 to 35 cents per share amid elevated cost inflation pending price recovery starting in early 2022. Let's turn to slide four. As we continue to deliver on our commitments, we are also making very good progress advancing OI's strategy. On this page, We list our 2021 priorities as well as some highlights on our progress. I'll touch base on each of our three platforms. First, we aim to expand margins. We have targeted $50 million of initiative benefits as well as continued performance improvement in North America. As you can see, we have already achieved our full year initiative target and now expect benefits with total around $60 million in 2021. Next, we seek to revolutionize glass. Our new Magma Generation 1 line has been commercialized in Germany, and our Generation 2 line in a street in Illinois is being piloted in the second half of 2021. Our glass advocacy and ESG efforts are also gaining esteem. Third, we will continue to optimize our structure. This includes a number of efforts ranging from portfolio adjustments, improving the balance sheet, simplifying the organization, and addressing legacy liabilities. Regarding our divestiture program, we have entered into agreements for over $1 billion of asset sales to date, including the recently announced intent to sell our Le Parfait Random Business in Europe. As laid out during our investor day, we are investing up to $680 million over the next three years that include up to 11 magma lines to enable profitable growth. Expansion plans are focused on severely oversold markets across Latin America, premium spirits in the U.S. and the U.K., and premium beer in Canada. As John will expand upon, year-to-date free cash flow is quite favorable compared to past trends, and we continue to advance other important efforts, including the paddock Chapter 11 process. Overall, we're very pleased with our progress. Moving to slide five, we have laid out the key elements of our strategy shared during Investor Day. As I've noted earlier, the combination of federal market conditions for glass containers, Hawaii's ongoing transformation and the introduction of magma are building the path to yes. Yes to profit our growth, glass is poised to benefit from key megatrends such as wellness, sustainability, premiumization, and at-home living. Reflecting these tailwinds, global market growth is anticipated to average 1.6% a year and higher in the principal regions where we operate. Given these trends and a revitalized commercial approach, we are investing in new capacity to enable key growth opportunities within our strong organic commercial pipeline. Yes to an agile and resilient company. Our transformation is well underway, and I believe recent performance demonstrates the momentum we are building. We expect significant benefits from our ongoing margin expansion initiatives. We are expanding our portfolio optimization program to realign our business portfolio fund organic growth, and improve our return on invested capital. Also, we intend to resolve legacy asbestos and pension liabilities that have hamstrung the organization for decades. Finally, just to a new paradigm for glass enabled by Magma. This new breakthrough solution provides a host of additional capabilities to build on top of our world-class heritage network. With Magma, we can meet the needs of an evolving market and expand our business. These efforts are set to accelerate OI's transformation through profitable growth, improved financial performance, and value to all the stakeholders. We are excited about the future, and we believe OI represents a compelling investment opportunity. Now, over to John.