In a challenging market environment, Owens-Illinois Inc (NYSE:OI)’s stock has touched a 52-week low, with shares falling to $10.09. The glass container manufacturer has faced significant headwinds over the past year, reflected in a substantial 1-year decline of -35.7%. According to InvestingPro analysis, the stock’s RSI indicates oversold conditions, while analyst targets range from $12 to $22, suggesting potential upside. Investors have shown concern as the company grapples with market pressures, leading to this new low point in its stock performance. The 52-week low serves as a critical indicator for the company’s stakeholders, marking a phase of reevaluation and potential strategic shifts to navigate through the current economic landscape. Despite current challenges, InvestingPro analysis indicates the stock is trading below its Fair Value, with analysts forecasting a return to profitability this year. InvestingPro subscribers can access 8 additional key insights about Owens-Illinois through detailed Pro Research Reports.
In other recent news, O-I Glass, Inc., a global leader in glass container manufacturing, has announced significant changes in its operations and financial outlook. The company’s "Fit to Win" initiative, aimed at optimizing production and reducing costs, involves the closure of two furnaces in Europe, impacting approximately 100 employees. The firm also plans to close around 4% of its capacity, specifically targeting plants that generate negative economic profit.
O-I Glass’s recent financial disclosure reveals an anticipated charge of roughly $72 million in the fourth quarter of 2024 due to these closures. Furthermore, the company has approved a severance program within its European operations, expecting to incur an additional charge of about $18 million in the same period.
The company’s financial performance has been under close scrutiny by several analyst firms. Barclays (LON:BARC), Truist Securities, and Loop Capital have revised their price targets for O-I Glass to $13, $15, and $12 respectively, while Baird Equity Research maintains an Outperform rating with an $18 target.
In the third quarter of 2024, O-I Glass reported a significant decline in performance, with an adjusted net loss of $0.04 per share compared to the $0.80 per share in the same quarter of the previous year. This loss was due to an 18% cut in production as a response to sluggish demand. The company has revised its full-year adjusted earnings estimate to $0.70 to $0.80 per share.
Lastly, O-I Glass has announced a temporary suspension of trading under its employee benefit plans due to a change in the investment fund-trading platform. This blackout period, in compliance with regulatory requirements, is expected to last until the week of January 19, 2025. These are the recent developments for O-I Glass.
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