Friday October 18th, 2013 - 9:43AM
Libbey Inc. announced that revenue for the third quarter, ended September 30, 2013, will be approximately $204 million, a $5 million revenue decline for the quarter, as compared with the same period last year.
Revenue declines were primarily experienced in the retail channel of distribution in China and the U.S. and Canada and to a lesser degree in the foodservice channel of distribution in these markets. Partially offsetting these declines was strong growth in the U. S. business-to-business channel, the company noted. The declines were due to softness in consumer spending and weak overall demand in these regions. U.S. and Canada revenues were also impacted by Libbey's decision to exit certain low-margin business.
Stephanie Streeter, Libbey's CEO said, "While we are certainly disappointed in the impact of unexpected costs and certain challenging macroeconomic factors on our third quarter results, we are pleased with the continued progress on our Libbey 2015 plan and our team's ability to control costs despite softness in China and the U.S."
Streeter continued: "We are well positioned in these markets for long-term growth as the economic environment improves and we continue to see strong results in our other high-growth markets. We will continue to focus on improving our cost structure, increasing productivity, strengthening our balance sheet and positioning the company for profitable growth in the future."
With respect to the fourth quarter, Libbey expects to experience continued weakness in retail demand in the U.S. and Canada and in China, partially offset by revenue growth in Mexico and Latin America, modest revenue growth in the U.S. business to business channel and revenue growth in EMEA. The company anticipates that, for the full year 2013, it will generate adjusted EBITDA margins that are very similar to the full year 2012 adjusted EBITDA margins on 2013 annual sales that are slightly less than 2012 annual sales.