You are given a text that consists of multiple sentences. Your task is to perform abstractive summarization on this text. Use your understanding of the content to express the main ideas and crucial details in a shorter, coherent, and natural sounding text. 
Text: 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.
Please review the safe harbor comments and disclosure of our use of non-GAAP financial measures included in those materials.
I appreciate your interest in O-I Glass.
We are pleased to report third quarter adjusted earnings of $0.58 per share.
Despite a number of macro challenges, O-I is once again delivering on its commitments as earnings exceeded our guidance range.
Demand for glass containers is strong yet our shipments were down about 1% in the quarter due to choppy demand patterns stemming from low inventory levels and ongoing global supply chain issues.
On the other hand, production levels rebounded nicely from the prior year which was impacted by the final stages of mandatory curtailments at the onset of the pandemic.
Also higher selling prices and the benefits of our revenue optimization initiative fully offset elevated cost inflation.
Overall, better than expected results primarily reflected the strong operating performance and cost management enabled by our margin expansion initiatives.
As we will discuss shortly, we're making great progress on our 2021 priorities including today's announcement of intend to sell our Le Parfait brand and business at an attractive valuation as part of our portfolio optimization program.
We are also accelerating O-I's transformation as we shared at our Investor Day last month.
The combination of favorable market conditions for glass containers, O-I's ongoing transformation and the introduction of MAGMA is building the path to 'yes.
' Yes, to an agile and resilient company.
Yes, to a new paradigm for glass and yes to profitable growth.
We are confident these plan will enhance value for all our stakeholders and ensure sustainable prosperity for O-I.
Reflecting growth momentum, we are increasing our full-year earnings outlook.
We now anticipate 2021 adjusted earnings will range between $1.77 and $1.82 per share and we expect at least $260 million of free cash flow.
We expect 4th quarter adjusted earnings will approximate $0.30 to $0.35 per share and with elevated cost inflation pending price recovery starting in early 2022.
Let's turn to a slide 4.
As we continue to deliver on our commitments, we are also making very good progress advance in O-I's strategy.
On this page, we list our 2021 priorities, as well as some highlights on our progress.
I'll touch base on each of our 3 platforms.
First, we aim to expand margins.
We have targeted $50 million of initiative benefits as well as continued performance improvement in North America.
As you can see, we have already achieved our full-year initiative target and now expect benefits with total around $60 million in 2021.
Next, we seek to Revolutionize Glass, our new Magma Generation 1 line has been commercialized in Germany and our Generation 2 line in Streator, Illinois is being piloted in the second half of 2021.
Our glass advocacy and ESG efforts are also gaining steam.
Third, we will continue to optimize our structure.
This includes a number of efforts ranging from portfolio adjustments, improving the balance sheet, simplifying the organization and addressing legacy liabilities.
Regarding our divestiture program, we have entered into agreements for over $1 billion of asset sales to date including the recently announced intent to sell our Le Parfait brand and business in Europe.
As laid out during our Investor Day, we are investing up to $680 million over the next 3 years that include up to 11 Magma lines to enable profitable growth.
Expansion plans are focused on our sole markets across Latin America, premium spirits in the US and the UK and premium beer in Canada.
As John will expand upon, year-to-date free cash flow is quite favorable compared to past trends and we continue to advance other important efforts including the Paddock Chapter 11 process.
Overall, we're very pleased with our progress.
Moving to slide 5.
We have laid out the key elements of our strategy shared during Investor Day.
As I've noted earlier, the combination of favorable market conditions for glass containers, O-I's ongoing transformation and the introduction of Magma are building the path to 'yes'.
Yes, the profitable growth, glass is poised to benefit from key mega trends such as wellness, sustainability, premiumization, and harm leaving.
Reflecting these tail winds, global market growth is anticipated to rise 1.6% a year and higher in the principal regions where we operate.
Given these trends and a revitalized commercial approach, we are investing in new capacity to enable key growth opportunities within our strong organic commercial pipeline.
Yes, to an agile and resilient company.
Our transformation is well underway and I believe recent performance demonstrates the momentum we are building.
We expect significant benefits from our ongoing margin expansion initiatives.
We are expanding our portfolio optimization problem to realign our business portfolio, fund organic growth and improve our return on invested capital.
Also we intend to resolve legacy asbestos and pension liabilities that have hamstrung the organization for decades.
Finally, yes to a new paradigm for glass enabled by MAGMA.
This new breakthrough solution provides a host of additional capabilities to build on top of our world-class heritage network.
With MAGMA, we can meet the needs of an evolving market and span our business.
These efforts are set to accelerate O-I's transformation through profitable growth, improved financial performance and value to all the stakeholders.
We are excited about the future and we believe O-I represents a compelling investment opportunity.
Now over to John.
I plan to cover a few topics today, including recent performance progress on our capital structure as well as our current 2021 business outlook.
I'll start with a review of our 3rd quarter performance on page 6.
O-I reported adjusted earnings of $0.58 per share.
As noted during our Investor Day, we expected results would be at the high end or slightly exceed our guidance of $0.47 to $0.52.
Stronger results reflected good operating momentum as we exited the quarter.
Segment operating profit was $243 million, which significantly exceeded prior year.
Higher selling prices fully offset elevated cost inflation linked to higher energy and freight costs.
While demand remains strong, sales volumes dipped 1% due to choppy demand and ongoing supply chain challenges in several markets we serve.
Likewise, favorable cost performance was driven by an 8% improvement in production levels as the prior year was impacted by forced curtailment due to lockdown measures.
Cost performance also reflected continued good operating performance and benefits from our margin expansion initiatives.
The slide includes additional details of non-operating items.
Overall, we are pleased with favorable performance trends.
Moving to page 7, we have provided more information by segment.
In the Americas segment profit was $133 million, up from $113 million last year, despite significant cost inflation pressures, favorable net price reflected timely pass-through on cost and the benefits of our revenue optimization initiatives.
Sales volume was down 3%.
In particular, we have seen some food categories rebalance as on premise reopens but food volume still remains above pre-pandemic levels.
Likewise, we have intentionally mixed managed certain low value categories given tight inventory conditions and ongoing supply chain challenges.
On the other hand production rebounded 9% and earnings benefited from good ongoing operating performance as well as our margin expansion initiatives, which offset elevated freight costs.
In Europe, segment profit was $110 million compared to $88 million last year.
Sales volume was up nearly 2% with strong growth in the wine category, while higher selling prices, partially mitigated elevated cost inflation.
Significantly lower operating cost reflected an 8% improvement in production levels very good operating performance and benefits from our margin expansion initiatives.
Keep in mind that we no longer report an Asia-Pacific region following the sale of ANZ last July.
Let's shift to cash flows in the balance sheet.
I'm now on page 8.
We are following a specific set of guiding principles for our cash flow and capital structure that are aligned with O-I's strategy to increase shareholder value.
We expect significantly higher free cash flow this year and key working capital measures should be in line or favorable compared to 2020 levels.
as illustrated on the chart, our 3rd quarter free cash flow was $213 million.
Over the past year, we have improved the consistency of our cash flows, which now reflect the normal seasonality of our business, solid operating results in working capital management.
Year-to-date cash flows approximated $181 million, so we are well positioned to achieve our full year guidance of at least $260 million of free cash flow.
Second, we preserved our strong liquidity and finished the 3rd quarter with approximately $2.1 billion of committed liquidity well above the established floor.
Third, we are reducing debt.
At the end of the 3rd quarter, our net debt was $4.3 billion, the lowest level since 2015 and our BCA leverage ratio was around 3.6 times.
Both net debt and our leverage ratio compare favorably to our full year targets.
So far this year, we have entered into agreements to sell $128 million of assets as part of our portfolio optimization effort.
This includes today's announcement of a binding commitment from a subsidiary of Berlin Packaging to acquire our Le Parfait brand and business for EUR72 million or about $84 million.
The EBITDA for this business was EUR7.5 million in 2020 with a similar performance on a 12 month trailing basis.
This represents a compelling valuation in excess of a 9 multiple.
We expect the proposed sale will be completed by year end or early next year.
The agreement also includes a long-term supply agreement for O-I to sell glass containers to Berlin to support expansion of this attractive and growing brand.
Finally, we intend to de-risk legacy liabilities as we advance the Paddock Chapter 11 process.
As previously announced, we have an agreement in principle for a consensual plan of reorganization where O-I will support Paddocks funding of a 524 (g) trust.
Total consideration is $610 million to be funded at the effective date of the plan.
Importantly, the agreement provides a channeling injunction protecting Paddock, O-I and their affiliates from current and future liability.
The Paddock reorganization is proceeding as expected and timing will be a function of the remaining legal and court actions to conclude this matter.
Overall, we continue to improve our cash flow and balance sheet position.
Let me finish up with a few comments on our business outlook.
I'm now on page 9.
We have increased our full year earnings guidance to between $1.77 and $1.82 per share reflecting favorable 3rd quarter results.
We now expect free cash flow will be at least $260 million.
We anticipate 4th quarter adjusted earnings will approximate $0.30 to $0.35 per share.
Fourth quarter results should be down from the prior year as cost inflation peaks.
Importantly, we are preparing to implement annual price increases early next year to recapture the impact of inflation.
Given ongoing global supply chain challenges, we anticipate sales buying will be about flat with the prior year.
Additionally, we expect continued strong operating performance and benefit from our margin expansion initiatives.
This outlook is based upon current FX rates as the dollar has strengthened some in the recent weeks.
Keep in mind that maintenance and engineering activity will be at their highest levels for the year during the 4th quarter.
Also our outlook reflects current conditions, which could shift given the level of macro uncertainties across the markets we serve.
We have also shared some additional themes for 2022 which are consistent with our longer term outlook shared at our Investor Day.
Let me wrap up with a few comments on slide 10.
Overall, we are pleased with our performance during the 3rd quarter.
Importantly, O-I continuously achieve its commitments despite a number of macro challenges and uncertainties.
I believe these represent a step change improvement in our ability to consistently perform and deliver.
At the same time, we continue to advance our key priorities for 2021.
Our multi-year margin expansion initiatives are gaining steam, MAGMA is advancing and we continue to improve our structure.
We are now a much more agile and resilient organization that is well positioned to accelerate our transformation.
Finally, we're building the path to yes that we outlined last month at our Investor Day.
Lawrence you are ready?

user
compname reports q3 adjusted earnings per share of $0.58 excluding items.
q3 adjusted earnings per share $0.58 excluding items.
q3 sales $1.6 billion.
sees fy adjusted earnings per share $1.77 to $1.82.
sees q4 adjusted earnings per share $0.30 to $0.35.

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