John. Thanks,
by start sharing on recent market me trends. Let view our
are a of consumption consumer to primarily our set have and for to down consumer significant patterns containers. inventory consumption. temporary led shipments We demand are a that facing with Overall, softer due conditions of decoupling glass unique modestly destocking a
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of through include our also patterns future current We view XXXX.
is digits that we consumption below glass serve, mid-single the been across As you shipments can to low see, categories yet consumer has measurably level. down this
adjust widespread interest their current management which have value consumption. inventory. recurring change the noted Likewise, destocking practices. and well adjusting [recalurating] and distributors chain moderate sluggish rates, of supply We future inventory is customers, for as cost believe for our push this supply initial up chains more as at inventory are across high inventories the chain We higher in retailers growth
beer in expansion decline already While in Furthermore, remain trends of the certain temporary, as demand current NAV. we to to and sequential October XXXX. situation transitioned volume improvement to NAV market we initiatives. including summary, in rebound America mid-single-digit Southern August believe and expect Again, low decline we will is segments growth our into a XXXX. in Andean trends reverse has expect we North in and The volume we down, compared like recent and from segments in rate the food Europe, are by September. started In strong some sales and has seeing go supported to growth
much in more than in our Let's organization move in top reflects chart. a to changes significant agile illustrated is is structural transformation which and O-I past. the Slide This the journey, X. capable embedded
executed we years chart. past as consistently the the have result, bottom well in improved several challenge our overcome a each noted to and have performance As over
the marks exceeded In met fact, have expectations. we either our quarter or this consecutive XXth quarter
We actions are adjust given are optimization specific America. network softer are second, to current agility navigate North the first, XXXX; taking into as we planned we curtailing steps: accelerating with demand levels situation inventory again across capacity market X we acting and head to
For the have plant high-cost so, recently announced eliminated including Waco we past X the year or closure. furnaces,
we earnings fragmented Ultimately, which our fit to towards profitable categories, for further continue business opportunities reposition more We North MAGMA ROIC. optimization great America a boost evaluate to are further to aim in and future. the
is craft is Our and key projects to spirits first well includes of O-I estealers expanding line Kentucky MAGMA accelerating the Scotland plant this initiatives. better well the This expansion as third, organization margin and productivity the to [Volvo] great automation completing of expenditures. our capital direction a as X are customers and yet Trail our as XX and along of we unit future will extended time have greenfield in serve numerous we additional IPS the restructuring our business; distribution recovery. expansion example Peru actions; We in on projects focused remain to greenfield market fourth, reducing months mid-XXXX, by MAGMA as Brazil, with by align our our
we now prior strong as discussion financial improvement provide fourth again aim XXXX years, XXXX. our I'm drive to our across we we the on macros, outlook proactive that with to our during contain XX. While we business most quarter This a Consistent the year. we measures deliver leads initial with on taking Slide are control levers will performance to next call.
good our it market-driven view levers CapEx on Keep on business certain are will that drive mind, key in while and have some gain time on management can However, sharing to line cost of preliminary such as sight our control we the levers the X factors. take we clarity we performance. that
volume As year. sales growth discussed, expect low we mid-single-digit to next
take It inventories we to precise inventory reduce it's on maintain in production quarter, clear to to the efforts price. likely here. some early aggressive view containment a time be net but will too to Following XXXX temporary in get fourth levels, more anticipate
price price remaining yet formulas contracts, on on future long-term covered our by inflation dynamics, realization which market a basis, favorable annual lagging XX% price to price will should demand realization subject Importantly, XX% record the include of on business be by of especially rate net that the net of covered business be agreements our the adjustment improvement.
market of open our expect initiatives this most down, our to next and early extending costs agreements, later expected are be negotiate and expansion margin X/X restructuring into reflecting we enhanced and represents year. actions. terms accelerated Europe starting month to Importantly, Operating
are unfavorable revaluation energy headwinds. lapping While inventory and credits onetime known
$XXX of is $XXX around until million, million projects plan a approximates this with proceed which Our and to adjusted down few CapEx we MAGMA million greenfield from substantially year markets the recover. $XXX as expansion initial timing
should expense be with interest prevailing Finally, rates. consistent
see, are you levers. As drive performance across we several business measures can to taking active
year full XXXX provide guidance year-end during to our expect earnings We call.
Slide XX. to turn Let's
MAGMA like will execute successfully profitable overall and our profile, ULTRA As value execute leverage we we sustainability as Advanced map, our believe financial business rate transformation is through growth. view, firmly innovations strengthen road now enable significant create which shareholder strategy our into a fully and long-term I longer-term our take program and enterprise our further integrated plan.
as allocation over aligned fund capital and to structure, with improve Our our well are capital strategy we our to return continue this shareholders value profitable priorities growth time.
OI environment. me Let on in well conclude execute challenging XX. continues Slide a to
which prior third our continue our with to key as pleased results expectations are quarter objectives. We we year performance, exceeded strategic and both advance
prior with strong expect best results earnings about the the the year, representing in XXXX performance We up adjusted XX years. a XX% past from
drive we elevated as are taking to uncertainty, markets contend a recover. While we strong with performance market action
focused value. and to long-term executing create shareholder ready on strategy our Finally, highly questions. we we're to compelling your you, address Thank remain
