Libbey Inc. today reported results for the first quarter-ended March 31, 2014. Sales for its first quarter were $181.6 million, compared to $183.5 million for the first quarter of 2013, a decrease of 1%. Gross profit for the first quarter was $32.3 million, compared to $42.2 million for the first quarter of 2013. Adjusted EBITDA for the quarter was $20.1 million, compared to $26.2 million in the prior-year quarter. Working capital was 22.9% of net sales, which was a record low for any first quarter in company history, according to Libbey.
“First quarter revenues were negatively impacted by the severe weather in much of the United States in January and February; however, we saw improving trends during March. Higher energy costs, both in natural gas and electricity, packaging price increases and currency fluctuation, largely in the Americas, provided headwinds during the quarter,” said Stephanie Streeter, CEO of Libbey Inc.
Streeter continued, “We look forward to a stronger sales environment in the remaining three quarters of 2014 and the opportunity to better leverage our global capabilities.”
The company reported that its sales in the Americas segment were $121.9 million, compared to $123.5 million in the first quarter of 2013, a decrease of 1.3%. This was comprised of a 1% decrease in sales in its foodservice channel, a decrease of 8.1% in retail and an 8.2% increase in the business-to-business channel.
Sherry Buck, CFO, added, “While we were impacted by weather and higher input costs in the quarter, we have a strong foundation to further increase our adjusted EBITDA margins in 2014 as we realize the benefits of our North American capacity realignment. In addition, we will begin to realize lower interest expense going forward as a result of the new $440 million senior secured credit facility, which, based on the initial interest rates, is expected to generate over $10 million in annual interest expense savings.”