Libbey Sees 2015 Third Quarter Sales Decline 6.6%
Libbey Inc. recently reported results for the third quarter ended September 30, 2015. Net sales for the third quarter were $201.8 million, compared to $216.0 million for the third quarter of 2014, a decrease of 6.6%. Net income for the third quarter of 2015 was $16.7 million, compared to net income of $13.8 million in the prior-year third quarter. Adjusted net income for the third quarter of 2015 was $18.0 million, compared to $13.8 million recorded in the third quarter of 2014. Adjusted earnings before interest, taxes, depreciation and amortization (adjusted EBITDA) for the third quarter of 2015 were $30.9 million, compared to $31.7 million in the prior-year quarter.
“Our core foodservice channel continues to be very strong around the globe in the face of declining restaurant traffic trends,” said Stephanie A. Streeter, CEO. “This is the sixth consecutive quarter of growth in foodservice for the company. Unfortunately, that was offset in the third quarter by weakness in our retail and business-to-business channels. Given the macro environment and the significant impact of currency, we delivered a solid performance and the fundamentals of our business remain strong. Even though our top-line growth was weaker than expected, we achieved 15.3% adjusted EBITDA margins, in-line with our expectations and ahead of prior year, largely driven by favorable price-mix, as we continue to gain share in our most profitable and important foodservice channel. However, the global economic environment continues to be inconsistent, and as a result, we believe it’s prudent to adjust our outlook for the remainder of 2015. We are now forecasting sales growth of approximately 1%, on a constant currency basis, and forecast adjusted EBITDA margins of approximately 14%.”
Net sales in the Americas segment were $139.5 million, compared to $149.4 million in the third quarter of 2014, a decrease of 6.6%. While foodservice sales remained strong, the reduction in net sales in the Americas was primarily the result of softness in the retail channel. Net sales in the EMEA segment decreased 18.9% to $30.6 million, compared to $37.7 million in the third quarter of 2014, due to softness in the retail and business-to-business channels. Net sales in the U.S. Sourcing segment were $23.5 million in the third quarter of 2015, compared to $20.6 million in the prior-year quarter, an increase of 14.2%. Net sales in Other were $8.2 million in the third quarter of 2015, compared to $8.3 million in the comparable period last year, reflecting a decrease of 1.1% in the Asia-Pacific region.
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