Libbey Food Service Sales Grow, Retail Declines In Q4

Libbey Inc. has reported results for its fourth quarter and full-year 2015. Net sales for fourth quarter were $219.1 million, compared to $231.4 million in fourth quarter 2014, a decrease of 5.3%. Net income for fourth quarter 2015 was $32.1 million, compared to net income of $19.8 million in the prior-year fourth quarter. 

Libbey’s new CEO and chairman, William Foley, noted that the company made progress during 2015 on its Own the Moment strategy, despite what he said were challenging market conditions.

“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,” said Foley. “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.”

Libbey’s net sales in the U.S. and Canada segment in the quarter were $139.8 million, compared to $138.2 million in the fourth quarter 2014, an increase of 1.1%. Food service sales in the segment grew 9% versus last year, partially offset with a reduction in net sales primarily as a result of softness in the retail and business-to-business channels, the company noted.

Libbey reported that its 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, food service net sales for the company were up 5.8% versus prior year.

The company’s net income for 2015 was $66.3 million, compared to net income of $5 million in 2014.

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 food service channel. Partially offsetting this increased performance was a decrease in the segment’s retail channel of 2.5%.