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Libbey Reports Record Adjusted Income From Operations

Thursday April 25th, 2013 - 3:14PM

For the first quarter ended March 31, Libbey Inc. reported that sales were $183.5 million compared to $187.8 million for the first quarter of 2012, a decrease of 2.3%, or 2.8% excluding currency fluctuation. Net income grew to $2 million from $600,000 in the 2012 first quarter, the company stated.

Libby related that adjusted income from operations grew 9.9%, compared to the first quarter of 2012, increasing to an all-time first quarter record of $16.4 million from $14.9 million in the year-ago quarter. Adjusted EBITDA increased 5.2% to a record for any first quarter of $26.2 million, the company asserted, after adjusting for $4.3 million of restructuring charges relating to the company's previously announced plans to discontinue production of certain glassware in North America and reduce manufacturing capacity at its Shreveport, LA manufacturing facility, versus $24.9 million for the first quarter of 2012.

"Overall, we are pleased with this quarter's results. While disappointed with a sales decline in the U.S. and Canada, we are very encouraged by our significant sales increase in Mexico and Latin America. The critical story, however, is our success in cost reductions, which resulted in record adjusted income from operations and adjusted EBITDA for any first quarter ever. This performance is even more notable, given that we had an extensive amount of maintenance activity, which led to underutilized capacity during the quarter," said Stephanie Streeter, Libbey CEO. "We are building a track record of success improving our cost structure, focusing on productivity improvements, leveraging our advantaged businesses and strengthening our balance sheet. We believe this solid start to the year should enable continued improved financial and operational performance for the remainder of 2013."

Libbey's sales in the Americas segment were $123.5 million compared to $129.7 million in the first quarter of 2012, a decrease of 4.7%, or 5.2% excluding currency fluctuation. Sales performance was led by a 4.5% increase in sales within the Mexican and Latin American end market. or 2.8% excluding currency impact, offset by an 8.6% decrease within the United States. and Canada end market, the company reported.