O-I Glass, Inc.

If you would like to register a question during today's event, please press star 1 on your telephone keypad. Now I'd like to hand over to Chris Manuel, Vice President of Investor Relations. Please go ahead.

Thank you, Elliot, and welcome everyone to the OI Glass first quarter 2025 earnings conference call. Our discussion today will be led by Gordon Hardy, our CEO, and John Hodrick, our CFO. Following prepared remarks, we will host a Q&A session. Presentation materials for today's 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. Now, I'd like to turn the call over to Gordon, who will start on slide three.

Good morning, everyone, and thank you for your interest in OIGlass. Today, we will walk you through our first quarter 2025 performance, key market trends, and outlook for the rest of the year. First, I would like to take this opportunity to thank all my colleagues at OI across the world for their efforts in this first quarter and for their agility and focus on driving the changes needed to turn OI around. Last night, we reported first quarter adjusted earnings of 40 cents per share, while down from last year, results significantly exceeded our plan due to stronger than anticipated sales volume and fit to win benefits. Market conditions have continued to gradually recover and our shipments increased by more than 4% compared to last year. Additionally, our fit to win program generated savings of $61 million, which was a significant contributor to our better than expected results. Strong demand and initiative benefits helped offset expected headwinds, including lower net price and scheduled temporary production curtailments. Looking at our business units, segment operating profit improved significantly in the Americas, reflecting healthier fundamentals and benefit from strategic initiatives. In Europe, results trended down, giving lower net price and temporary production downtime, which was partially mitigated by solid fit to win benefits. Overall, we are off to a strong start this year and are successfully managing the elements within our control. As such, we are reaffirming our full year 2025 guidance and expected adjusted earnings to improve between 50 and 85% from 2024. John will discuss our outlook further, including an initial view on how changing global trade policies could affect the business. In summary, then we are pleased with our year to date performance trend, despite some anticipated lag in Europe. and we aim to deliver robust financial performance throughout the year. Let's now turn to page four to discuss current market trends. Overall, conditions continued to gradually improve and our shipments were up 4.4% in the first quarter. Solid growth reflected some rebuilding of packaging inventories across the value chain, benefits from recent contract negotiations supported by multi-year cost improvement plans, and likely some advanced purchases ahead of new tariff policies. Shipments were up more than 4% across the Americas. Here we see inventory normalization overall, as well as more structural demand improvement in Latin America, together with the positive impact of some expanded contracts in North America. Volumes increased in nearly all markets, driven by a strong rebound in beer and spirits with solid growth in food. Volumes grew nearly 4% in Europe, driven by customer inventory rebuilding and some buying ahead of tariffs for export customers. As with the Americas, shipments increased in nearly all markets and categories, with most growth coming from beer, wine, as well as food. Currently, we are addressing excess capacity in Europe through temporary curtailments, and we are in consultation with the European and local works councils regarding long term restructuring actions. These efforts should improve our competitive position and support profitable growth. Shipment activity has been encouraging and our volumes are up about 3% year to date through April. Recently, we've seen some softer demand amid elevated uncertainty of new tariff policies, which may continue to impact near term shipments. As such, we are maintaining a cautious commercial outlook as well as our original sales volume guidance. We will reassess our 2025 sales volume outlook mid-year as trends evolve. Let's now turn to page five and discuss progress on our Fit to Win program, which aims to radically reduce total enterprise costs, as well as optimize our entire network and value chain to support future profitable growth. We generated $61 million in savings during the first quarter alone, which exceeded our initial plan. Momentum is building, and we are confident that we will achieve our targets of $250 million in 2025 and $650 million cumulatively by 2027. Phase A of our Fit to Win program is focused on reshaping our SG&A structure and initial network realignment to meet current market needs. Phase B seeks to fundamentally transform costs across the value chain, including the implementation of our total organization effectiveness program to optimize capacity within the system. Regarding phase A, we have now completed all actions required to secure our 100 million SG&A savings target in 2025. Initial network optimization actions are well underway, and we are confident that we will achieve our 2025 goal. Likewise, additional efforts are in progress to achieve our 2027 targets. We have also kicked off our phase B initiatives. As we look to transform our cost base, the team has already made initial progress across several procurement programs, as well as efforts to improve efficiency and reduce energy utilization. Finally, our total organization effectiveness program is ramping up nicely. We successfully completed the pilot implementation at our Tawana, Virginia plant, where we see significant performance improvements and lower inventory levels. Based on those results, we will begin the broader rollout starting in May 2025, which should be completed by the end of 2026. Importantly, many plants have initiated savings programs based on the TOE principles ahead of the formal rollout, generating early savings. In summary, Our fit to win program is delivering strong benefits, and we are making solid progress towards our savings target. We are confident in our ability to achieve our goals, enhance operational performance, and are well positioned for continued success throughout the year. I will now turn it over to John, who will review our first quarter performance and our 2025 outlook in more detail, starting on page six.