O-I Glass, Inc. (NYSE:OI) Q1 2023 Earnings Call Transcript

John Haudrich: Yeah, indeed. To your point, EBITDA is up more than $100 million in free cash flow, up more than $25 million. So, obviously, there’s a difference there. One thing to keep in mind is our free cash flow outlook is a floor. And so we anticipate to hit that or like probably do better, that’s our intent. To your point, working capital performance will reflect what we think is the shape of the sales volume curve and trend. So that’s going to play out through accounts receivable and inventory through the balance of the year. We think it’s prudent right now to keep a conservative approach on how that plays out and taking the most conservative view on that, which is that, hey, things continue to be softer towards the — over the balance of the year.

But the actual demand picks up in the back half of the fourth quarter, where you’re actually rebuilding receivables, for example, and things like that. So, ideally, we bounce back sooner than that. But I think at this point in time, it is best to take a conservative approach and probably working capital is probably a $50 million swing factor in our business right now. And as we said in the prepared comments, we’ll keep you updated as we see a better sense of what that curve looks like.

Mike Leithead: Okay. Thank you so much.

Andres Lopez: Thank you.

Operator: Thank you. We currently have no further questions. So I’ll hand back to Chris Manuel for any further remarks.

Chris Manuel: Thanks, Alex. That concludes our earnings call. Please note that, our second quarter call is currently scheduled for August 2, and remember making a memorable moment by choosing safe, sustainable glass. Thank you for your interest.

Operator: Thank you for joining today’s call. You may now disconnect your lines.