O-I Glass (OI) risk factors, FY2024 10-K

Risks Related to the Company’s Business and Industry

1. 01Global Economic Environment—The global credit, financial and economic environment could have a material adverse effect on operations and financial condition
2. 02Energy Costs or Availability—Higher energy costs worldwide and interrupted power supplies, including as a result of the current conflicts between Russia and Ukraine and Hamas and Israel and any escalation of these conflicts, may have a material adverse effect on the Company’s consolidated assets or operations
3. 03Competition—The Company faces intense competition from other glass container producers, as well as from makers of alternative forms of packaging. Competitive pressures could adversely affect the Company’s financial health
4. 04Lower Demand Levels—Changes in consumer preferences or customer inventory management practices could have a material adverse effect on the Company’s financial results
5. 05Customer Consolidation—The continuing consolidation of the Company’s customer base may intensify pricing pressures and have a material adverse effect on operations
6. 06Supply Chain Disruptions—The Company’s capital expenditure plans have been, and may continue to be, affected by supply chain disruptions
7. 07Operational Disruptions—Profitability could be affected by unanticipated operational disruptions
8. 08Raw Materials—Profitability could be affected by the availability and cost of raw materials
9. 09Transportation—Profitability could be affected by the availability and cost of transportation for the Company’s products
10. 10Seasonality—Profitability could be affected by varied seasonal demands
11. 11Joint Ventures—Failure by joint venture partners to observe their obligations could have a material adverse effect on operations
12. 12Labor—Some of the Company’s employees are unionized or represented by workers’ councils, and its business could be affected by labor shortages and labor cost increases
13. 13Business Integration Risks—The Company may not be able to effectively integrate additional businesses it acquires in the future
14. 14Goodwill—A significant write-down of goodwill would have a material adverse effect on the Company’s reported results of operations and net worth
15. 15Pension Funding—An increase in the underfunded status of the Company’s pension plans could adversely impact the Company’s operations, financial condition and liquidity

Risks Related to Information Technology, Cybersecurity and Data Privacy

1. 16Information Technology—Failure or disruption of the Company’s information technology, or those of third parties, could have a material adverse effect on its business and results of operations
2. 17Cybersecurity and Data Privacy—Security incidents affecting the Company or critical third-party service providers could materially impact its business, reputation and results of operations by disrupting business operations or compromising critical and confidential information

Risks Related to the Company’s Indebtedness

1. 18The Company has a significant amount of debt. As of December 31, 2024 and December 31, 2023, the Company had approximately $5.0 billion and $4.9 billion of total debt outstanding, respectively
2. 19Ability to Service Debt—To service its indebtedness, the Company will require a significant amount of cash. The Company’s ability to generate cash and refinance certain indebtedness depends on many factors beyond its control
3. 20Debt Restrictions—The Company may not be able to finance future needs or adapt its business plans to changes because of restrictions placed on it by the secured credit agreement and the indentures and instruments governing other indebtedness

Risks Related to the Company’s International Operations

1. 21International Operations—The Company is subject to risks associated with operating in foreign countries
2. 22sales in 2024 were in France, Italy and Mexico. In addition, the Company is a 50% partner in joint ventures in Italy and Mexico
3. 23Foreign Currency Exchange Rates—The Company is subject to the effects of fluctuations in foreign currency exchange rates, which could adversely impact the Company’s financial results

Risks Related to Legal and Regulatory Matters, Sustainability and Climate Change

1. 24Taxes—Potential tax law and global trade policy changes could adversely affect net income and cash flow
2. 25Environmental Risks—The Company is subject to various environmental legal requirements and may be subject to new legal requirements in the future. These requirements may have a material adverse effect on operations
3. 26Glass Recycling, Deposit Return Systems, Extended Producer Responsibility and Recycled Content Requirements—The Company’s business and its ability to meet climate-change goals may be impacted by recycling and recycled-content laws and regulations
4. 27Climate Change and Air Emissions—The Company’s business, ability to meet climate-change goals, and transition to lower-carbon processes may be impacted by new, changed, or increased regulations or requirements relating to air emissions and the use of fossil fuels, or by the physical impacts of climate change
5. 28ESG Scrutiny—Increased environmental, social and governance (ESG) scrutiny and changing expectations from stakeholders may impose additional costs or additional risks