Libbey Net Falls 24 Percent in Fourth Quarter
TOLEDO, Ohio-Rising expenses, a decline in sales and one-time charges combined to slash Libbey's fourth-quarter net income by 24 percent, to $2.1 million.
Net sales in the quarter, which ended on Dec. 31, were down 3.6 percent to $214.8 million. Sales in the United States and Canada dropped 4.1 percent and were flat in Mexico, offsetting gains in Europe and China. Selling, general and administrative expenses rose 15 percent in dollars and 212 basis points as a percentage of sales, to 13.1 percent. Gross margin fell 230 basis points to 17.6 percent.
In addition, Libbey posted one-time charges during the quarter for severance, a write-down of unused fixed assets in the glass operations segment. Without these items, net income totaled $4.1 million, up 116 percent from the fourth quarter of 2010, minus one-time items in that quarter.
For the fiscal year, Libbey's net income fell 66 percent to $23.6 million, on an increase in net sales of 2.2 percent to $817.1 million.