O-I Glass, Inc. (NYSE:OI) Q4 2022 Earnings Conference Call February 1, 2023 8:00 AM ET

Company Participants

Christopher Manuel - Vice President of Investor Relations

Andres Lopez - Chief Executive Officer

John Haudrich - Chief Financial Officer

Conference Call Participants

Ghansham Panjabi - Baird

Bryan Burgmeier - Stanton

Mike Roxland - Truist Securities

Kyle White - Deutsche Bank

Arun Viswanathan - RBC Capital Markets

Gabe Hajde - Wells Fargo

Mike Leithead - Barclays

Operator

Hello, everyone and welcome to the O-I Glass Full Year and Fourth Quarter 2022 Earnings Conference Call. My name is Davie and I'll be coordinating your call today. [Operator Instructions]

I would now like to hand the call over to your has Chris Manuel, Vice President of Investor Relations, to begin. So Chris, please go ahead.

Christopher Manuel

Thank you, Dave and welcome, everyone, to the O-I Glass full year and fourth quarter earnings call. Our discussion today will be led by Andres Lopez, our CEO; and John Haudrich, 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 earnings 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 3.

Andres Lopez

Good morning, everyone and thanks for your interest in O-I. We are very pleased with O-I's performance in 2022, our results exceeded guidance and we achieved all of our key commitments.

Last night, we reported adjusted earnings of $2.30 per share which represented more than 25% increase from the prior year results and exceeded guidance. As you can see on the left, we have very good business momentum, with consistent adjusted earnings growth over the past several years. The strong results reflected solid execution across all key business levers. Earnings benefited from significant net price as well as sales volume growth, good operating performance and our margin expansion initiatives. Importantly, Full year free cash flow and fourth quarter results also exceeded our most recent business outlook. In fact, this represents the 12th consecutive quarter we have met or exceeded the Street consensus.

In addition to a strong operating performance, we also achieved all of our key strategic objectives in 2022. Margins were up and we initiated our capacity expansion program to enable profitable growth that includes our first MAGMA greenfield plant. We also significantly improved our structure as Paddock result is legacy as best related liabilities and we completed our portfolio optimization program. As a result, we now have the healthiest balance sheet in the past decade.