Libbey Expects Lower Third Quarter Revenue
Libbey Inc. recently announced that it expects revenue for the third quarter ended September 30, 2013, to be approximately $204 million and adjusted EBITDA for the quarter to be between $27 million and $29 million, which excludes the impact of a September 2013 furnace malfunction. These figures reportedly represent a decline of approximately $5 million in revenue and $9 million to $11 million in adjusted EBITDA relative to last year’s third quarter.
Revenue declines were primarily experienced in the retail channel of distribution in China, the U.S., and Canada and, to a lesser degree, in the foodservice channel of distribution in these markets. Partially offsetting these declines was strong growth in the U. S. business-to-business channel. The declines were reportedly due to softness in consumer spending and weak overall demand in these regions.
“While we are certainly disappointed in the impact of unexpected costs and certain challenging macroeconomic factors on our third quarter results, we are pleased with the continued progress on our Libbey 2015 plan and our team’s ability to control costs despite softness in China and the U.S.,” said Stephanie A. Streeter, CEO. “We are well-positioned in these markets for long-term growth as the economic environment improves and we continue to see strong results in our other high-growth markets. We will continue to focus on improving our cost structure, increasing productivity, strengthening our balance sheet and positioning the company for profitable growth in the future.”
For more information, visit www.libbey.com.