Libbey Inc. recently reported results for the first quarter ending March 31, 2017. Net sales in the U.S. and Canada segment were reported lower due to softer sales in the foodservice and retail channel, which were down approximately 4% and 7%, respectively. U.S. foodservice volume was reported up slightly in the quarter, compared to the prior-year period. Reductions in net sales in the retail and foodservice channels were partially offset by a nearly 10% increase in net sales in the business-to-business channel that was driven by an increase in volume.

The report also showed that in Latin America, net sales declined as a result of lower net sales in the business-to-business and retail channels. Net sales in the EMEA segment decreased primarily as a result of unfavorable currency and lower volume in the retail channel, in line with the company’s planned exit from some lower margin business.

“Our first quarter results reflected net sales that were in line with our expectations, but a continuation of difficult end-market conditions in our foodservice and retail channels resulted in lower profitability than we anticipated during the quarter,” said William A. Foley, chairman and CEO. “Planned furnace rebuilds, the initiation of some technology investments, foreign currency, unfavorable price and product mix, and the mark-to-market impact of certain natural gas hedges, all negatively impacted profitability in the quarter. As a result, we’ve begun taking proactive measures to ensure the strength of our business, and we've revised our full-year outlook accordingly.

“While we do not foresee any improvement in the competitive environment in the near-term, we are adapting to structural shifts occurring in our markets, and we’re making appropriate operational and organizational improvements to maintain our business strength. We’re implementing strong cost controls, taking pricing actions in both the U.S. and Mexico to improve margins, continuing to enrich our product mix with new product launches, and accelerating development of our e-commerce platform to improve sales performance. We’re confident in the strength of our market position, and we’re seeing indications of increased interest in our products in a number of regions where customers are seeking a stable supplier, as the health of some of our competitors remains uncertain. We have a great team in place working to secure a successful future, and we believe Libbey will emerge from this environment as an even stronger leader in the industry.”

As a result of lower-than-expected first-quarter results, as well as the expectation of continued challenging end-market conditions, the company has revised its full-year 2017 outlook. Libbey now expects net sales to decline in the low-to-mid-single digits, compared to the full year 2016, on a reported basis, with continued currency headwinds, and capital expenditures of approximately $50 million.

For more information, visit www.libbey.com.