Libbey Posts Sales Gain, Net Loss in Q1
TOLEDO, Ohio-Glassmaker Libbey posted a net loss of $1 million despite a 4 percent sales increase in the first quarter.
The loss occurred in part because of special items which involved the redemption of payment-in-kind notes, a form of debt in which interest is paid in a form other than cash. Libbey redeemed these notes in February 2010, resulting in a net gain of $56.8 million in last year's first quarter and a $2.8 million loss in the first quarter of this year.
Sales for quarter, which ended March 31, were $181 million, compared to $173.9 million in the first quarter of 2010. Libbey reported a net loss of $1.0 million, compared to net income of $55.4 million in the prior-year quarter.
Libbey also announced that it expects to close later today on the sale of substantially all of the assets of its Traex subsidiary to the Vollrath Company. Libbey expects to receive net proceeds of over $13 million, which will contribute to additional debt reduction. Libbey expects to record a gain on the sale of between $2.5 million and $3.5 million during the second quarter of 2011.
Commenting on results, John F. Meier, chairman and CEO, said, "We were pleased with the solid sales and gross profit margin improvements we saw in our glass operations segment in the first quarter, especially in light of the weather related impact in the U.S. We were also encouraged by the sales growth we experienced in China as well as both the U.S. and Canadian retail and business-to-business channels of distribution."