Libbey Net Triples in Q1
TOLEDO, Ohio-Reductions in key expense items offset a drop in sales to deliver a 210.3 percent jump in net income to Libbey in its fiscal first quarter, to $2 million.
Net sales in the quarter slipped 2.3 percent to $183.5 million. Sales in its Americas segment, its largest in the geographic sense, were down 4.7 percent, with sales in the U.S. and Canada sectors dropping 8.6 percent. Meanwhile, sales in the Europe, Middle East and Africa region rose 11.2 percent, while sales in the "other" geographic segment (which includes the Asia-Pacific sector) fell 6.2 percent.
However, the tabletop leader trimmed 6.1 percent off its selling, general and administrative expenses in dollar terms in the quarter, which ended on March 31. SG&A as a percentage of sales also fell by 58 basis points to 14.4 percent, while gross margin edged up 10 basis points to 23 percent. In addition, Libbey's first-quarter interest expense was down 19 percent, and it reduced its provision for income taxes by 80 percent.
Stephanie Streeter, Libbey's CEO, said these cost reductions were "the critical story" for the company's first quarter. "We are building a track record of success improving our cost structure, focusing on productivity improvements, leveraging our advantaged businesses and strengthening our balance sheet," Streeter said.