Ceramic Industry News

Libbey Avoids Net Loss in Second Quarter 2009 (posted 8/3/09)

August 3, 2009
/ Print / Reprints /
ShareMore
/ Text Size+

Libbey Inc. recently announced that its net sales were $195.8 million in the second quarter of 2009, compared to $224.8 million in the prior-year second quarter. Libbey reported net income of $2.7 million, or $0.18 per diluted share, for the quarter ended June 30, 2009, compared to a net loss of $2.1 million, or $0.14 per diluted share, in the prior-year second quarter.

“We continued our success in cash flow generation and inventory reduction for the quarter, resulting in improved liquidity,” said John F. Meier, chairman and CEO. “Our U.S. retail shipments again led the way during the second quarter, as sales in this channel increased almost 7% compared to the second quarter of 2008. Given overall increases in demand, primarily in North America, we have increased our scheduled capacity utilization in all three North American glass factories for the third quarter of 2009.”

For the quarter ended June 30, 2009, sales decreased 12.9% to $195.8 million from $224.8 million in the year-ago quarter. North American Glass sales decreased 11.1% to $137.7 million from $155.0 million in the year-ago quarter. The decrease in sales was attributable to a 27.9% decrease in sales to Crisa customers (15.1%, excluding the currency impact of the Mexican peso) and a 5.5% decline in sales to U.S. foodservice customers, partially offset by an approximately 7.0% increase in shipments to retail glassware customers.

North American Other sales decreased 19.2%, as shipments of Syracuse China products decreased approximately 34.0% and sales of Traex and World Tableware products decreased approximately 27.0% and 8.7%, respectively. International sales decreased 17.3% as the result of increased sales of 4.6% to customers of Libbey China, which were more than offset by lower sales at Royal Leerdam and Crisal of 17.3% and 20.5%, respectively. Excluding the negative currency impact, international sales decreased by approximately 7.9%.

The company reported income from operations of $11.5 million during the quarter, compared to income from operations of $18.7 million in the year-ago quarter. Normalized income from operations was $12.0 million during the quarter. Factors contributing to the decrease in normalized income from operations were a $5.6 million negative exchange rate impact (primarily in Mexico), lower sales and lower production activity, partially offset by lower spending on labor, raw materials, packaging, repairs, natural gas, electricity and distribution costs.

For the six months ended June 30, 2009, sales decreased 14.2% to $353.7 million from $412.1 million in the year-ago period. North American Glass sales decreased 12.7% to $246.5 million from $282.5 million in the year-ago period. The lower sales were attributable to an approximate 28.5% decrease in Crisa's sales (15.5%, excluding the currency impact of the Mexican peso) and a 5.9% decrease in sales to foodservice glassware customers in the U.S. and Canada.

With a 6.9% increase in sales during the second quarter, the U.S. retail channel delivered sales essentially equal to the all-time record retail sales performance during the first six months of 2008. North American Other sales decreased 19.4%, as sales of Syracuse China, World Tableware and Traex were all lower than the first six months of 2008. International sales decreased 18.9% as a result of significantly decreased shipments to customers of Royal Leerdam and Crisal and unfavorable currency impact on European sales. Libbey China sales increased slightly for the first half of 2009 compared to the first six months of 2008. Excluding the currency impact, international sales decreased approximately 9.4%.

The company reported a loss from operations of $0.6 million during the first six months of 2009, compared to income from operations of $28.2 million in the year-ago period. Normalized income from operations was $4.6 million for the first half of 2009. Factors contributing to the decrease in normalized income from operations were a $9.7 million negative exchange rate impact (primarily in Mexico and Europe); reduced capacity utilization, reflecting the company’s effort to control inventories and generate cash; and lower sales. These factors were partially offset by lower spending on labor, raw materials, packaging, repairs, natural gas, electricity and distribution costs.

Additional details, including a replay of a recent conference call discussing these results, is available at www.libbey.com.

Links

Did you enjoy this article? Click here to subscribe to Ceramic Industry Magazine.

You must login or register in order to post a comment.

Multimedia

Videos

Image Galleries

In-Depth Features

These articles detail innovative advanced ceramic and glass materials and technologies.

Podcasts

Sapphire: An Extreme Performer

Ian Doggett of Goodfellow and CI Editor Susan Sutton discuss the benefits and opportunities provided by industrial sapphire.

More Podcasts

THE MAGAZINE

Ceramic Industry Magazine

CI April 2014 cover

2014 April

Our April issue features details on advanced materials such as ceramic matrix composites and piezoelectric ceramics, among many others. Be sure to check it out!

Table Of Contents Subscribe

THE CERAMIC INDUSTRY STORE

M:\General Shared\__AEC Store Katie Z\AEC Store\Images\Ceramics Industry\handbook of advanced ceramics.gif
Handbook of Advanced Ceramics Machining

Ceramics, with their unique properties and diverse applications, hold the potential to revolutionize many industries, including automotive and semiconductors.

More Products

Clear Seas Research

Clear Seas ResearchWith access to over one million professionals and more than 60 industry-specific publications,Clear Seas Research offers relevant insights from those who know your industry best. Let us customize a market research solution that exceeds your marketing goals.

Directories

CI Data Book July 2012

Ceramic Industry's Directories including Components, Equipment Digest, Services, Data Book & Buyers Guide, Materials Handbook and much more!

STAY CONNECTED

facebook_40px twitter_40px  youtube_40pxlinkedin_40