Libbey Net Dives 68 Percent in Q3
TOLEDO, Ohio-With both sales and gross margin down, Libbey's third-quarter net income finished at $4.7 million, down 68 percent from the third quarter of last year.
Net sales in the quarter, which ended on Sept. 30, fell 2.3 percent to $204.4 million. Stephanie Streeter, Libbey's CEO, said sales through both its retail distribution channel and food-service channel declined in the United States, Canada and China. This was offset to some extent by sales gains in Mexico, Latin America, Europe, the Middle East and Africa, Streeter said.
Gross margin dropped 493 basis points to 19.4 percent. Selling, general and administrative expenses decreased 5.1 percent in dollars and 36 basis points as a percentage of sales, to 12.4 percent.
"Our restructuring initiatives over the last two years have strengthened our cost position considerably," Streeter said, "and we are now focused on productivity improvement initiatives across our global operations. These steps--combined with our strong market positions, the breadth of our product portfolio, our drive for innovation and our superior customer service--position us well to realize value-driving benefits as demand in certain markets strengthens."