Libbey Drives Net Up 61 Percent in Second Quarter
TOLEDO, Ohio--Lower expenses fueled second-quarter net income for Libbey to a 61 percent increase, to $15.4 million.
The bottom line for the quarter, which ended on June 30, received boosts from the company's sale of Traex, the food-service products vendor, to Vollrath Co. In addition, selling, general and administrative expenses dropped 38 basis points as a percentage of sales to 11.8 percent, although they increased 2 percent in dollar terms. Libbey also posted a provision for income taxes that was 54.5 percent less than in last year's second quarter.
Net sales rose 5.4 percent to $214 million. John Meier, Libbey's chairman and CEO, cited "solid sales improvements" in the company's glass operations segment, along with strong sales in China and Europe.
Gross margin slipped 38 basis points to 23.3 percent, driven down by production issues in both Mexico and Holland, which Libbey said have been resolved.