Libbey Goes from Loss to Profit in Q1
Libbey Inc. began its fiscal year on the absolute right note, transforming a $3.4 million net loss from the first quarter of last year into $3.1 million of net income this year.
Net sales in the quarter, which ended on March 31, gained 3.2 percent to $187.4 million. Providing a boost to the bottom line, gross margin was up 477 basis points to 22.7 percent. Selling, general and administrative expenses rose 19.1 percent in dollars and 246 basis points as a percentage of sales, to 18.4 percent.
“The trends observed in our business during the first quarter were in line with our expectations and give us confidence that we will continue to have success executing against our ‘Own the Moment’ strategy in fiscal year 2015,” said Stephanie Streeter, Libbey’s CEO. Unveiled in January, “Own the Moment” is Libbey’s initiative directed toward growing sales by 4 to 6 percent a year, with the goal of reaching $1 billion in annual sales by 2018. It also calls for improving profitability through leveraging volumes, creating new supply-chain efficiencies and continuing the company’s efforts to bolster productivity.
Streeter added, “While much progress has been made, we remain aggressively focused on our efforts to strengthen the company by continuing to make smart investments in people, products and processes for the future.”