2015 Net Sales Essentially Flat for Libbey
Libbey Inc. recently reported results for the fourth quarter and full year 2015. The company also announced that it has revised its reportable operating segments as: U.S. and Canada (reflects combination of U.S. and Canada Glass business and previous U.S. Sourcing segment); Latin America; Europe, Middle East and Africa (EMEA); and Other.
Net sales for the fourth quarter of 2015 were $219.1 million, compared to $231.4 million in the 2014 fourth quarter, a decrease of 5.3%. Net income was $32.1 million, compared to net income of $19.8 million in the prior-year fourth quarter. Adjusted net income was $9.1 million, compared to $11.9 million recorded in the same period of 2014. Adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) for the quarter was $31.0 million, compared to $30.7 million in the prior-year.
“Libbey made progress during 2015 on the Own the Moment strategy, despite the challenging market conditions,” said William A. Foley, chairman and CEO. “We have the right long-term vision, and the core foundation of our Own the Moment strategy is absolutely correct. We must continue our evolution to become a faster-paced, customer and consumer-focused business. We have an excellent leadership team in place that is focused on a number of operational improvements that will simplify our business, allow us to respond faster to customer needs, become a true innovator of new products and become more competitive in the markets in which we compete.”
Net sales in the U.S. and Canada segment were $139.8 million, compared to $138.2 million in the fourth quarter of 2014, an increase of 1.1%. Foodservice sales remained strong during the quarter, growing 9% vs. last year, partially offset with a reduction in net sales primarily as a result of softness in the retail and business-to-business channels. Net sales in the Latin America segment were $40.2 million, compared to $48.5 million in the 2014 fourth quarter, a decrease of 17.1%, due to a heightened competitive environment and weakness in the retail channel. Net sales in the EMEA segment were $31.5 million, compared to $36.2 million in the fourth quarter of 2014, a decrease of 13%, due to softness in the retail channel. Net sales in Asia-Pacific were $7.7 million in the 2015 fourth quarter, compared to $8.5 million in the comparable prior-year quarter, reflecting a decrease of 9.8%.
Net sales for the full year were $822.3 million, compared to $852.5 million for the full year of 2014, a decrease of 3.5%. During 2015, Foodservice net sales were up 5.8% vs. the prior year. Net income for 2015 was $66.3 million, compared to net income of $5.0 million in 2014. Net income was favorably impacted by the reversal of substantially all of the remaining valuation allowance recorded against U.S. deferred tax assets of $43.8 million. Last year’s net income included a $47.2 million charge for the retirement of debt during the period. Adjusted net income for 2015 was $47.8 million, compared to $50.7 million recorded in 2014. Adjusted EBITDA for 2015 was $116.1 million, compared to $123.4 million in 2014. In 2015, Libbey repurchased 412,473 shares at an average price of $37.03.
Net sales in the U.S and Canada segment were $497.7 million in 2015, compared to $482.1 million in 2014, an increase of 3.2%. Sales performance was led by a 7.5% increase in sales within the segment’s Foodservice channel. Partially offsetting this increased performance was a decrease in the segment’s Retail channel of 2.5%. Net sales in the Latin America segment decreased 12.1% to $167.1 million, compared to $190.1 million in 2014. Net sales in the EMEA segment decreased 16.9% to $122.7 million, compared to $147.6 million in 2014. Sales in Asia-Pacific were up 6% to $34.9 million, compared to $32.7 million in the prior year.
“In 2016, we plan to maintain our balanced approach to capital allocation,” said Sherry Buck, CFO. “In addition to improving free cash flow generation during 2016, we plan to further our progress on achieving our stated leverage ratio targets and to return capital to shareholders through our share repurchase program and our dividend policy, which was recently increased 5% to $0.46 per share annually.”
For more information, visit www.libbey.com.