Libbey Net More Than Doubles in 3Q
TOLEDO-Improved margins and strong expense controls propelled Libbey to a 108.5 percent gain in third-quarter net income, to $14.9 million.
Stephanie Streeter, the company's CEO, attributed the strong bottom line to its "increased focus on driving down costs and defending and growing our key markets, the core of our recently announced strategic plan." A reduction in cost of sales helped boost gross margin for the quarter, which ended on Sept. 30, by 282 basis points to 24.5 percent. Selling, general and administrative expenses rose 0.5 percent in dollars but were shaved by four basis points as a percentage of sales, to 12.9 percent.
Net sales in the quarter, which ended on Sept. 30, rose by a scant 0.9 percent to $209.2 million. Leading the way in sales were Libbey's China region, whose sales jumped 13 percent, and the Mexico region, whose sales rose 9 percent. Sales in the United States and Canada edged up 1 percent, and sales in Europe fell 9.7 percent.
"We are committed to further improving our cost structure, leveraging our advantaged businesses and strengthening our balance sheet," Streeter said. "We believe these efforts, combined with our overall productivity improvements, will enable strengthened financial and operational performance."