Libbey Goes from Loss to Gain in Q2
TOLEDO, Ohio-Libbey was able to turn its bottom line from red to black in its fiscal second quarter, posting net income of $12.4 million. In last year's second quarter, the company reported a net loss of $10.1 million--largely due to a $31.1 million loss on the redemption of debt.
Net sales for the quarter, which ended on June 30, were up a slight 0.3 percent to $209.9 million. Libbey's Europe, Middle East and Africa segment posted a sales gain of 12.6 percent, and Stephanie Streeter, the company's CEO, also cited strong performance in the Asia/Pacific, Mexico and Latin America markets. Sales in the U.S. and Canadian markets fell 7.8 percent.
Gross margin registered an improvement of 45 basis points, finishing the quarter at 27.4 percent. Selling, general and administrative expenses increased 8.2 percent in dollars and 104 basis points as a percentage of sales, to 14.1 percent.
Streeter said, "With six consecutive quarters of year-over-year improvement, we have demonstrated success in improving our cost structure, making productivity improvements, leveraging our advantaged businesses and strengthening our balance sheet." She added that the company expects continued growth in income and margins for the full 2013 year, especially with a projected increase in capacity utilization in the fourth quarter.