Libbey Net Income, Sales Decline In Q1

Libbey Inc. has reported that net sales and income both declined in its first quarter of 2016, ended March 31.

Overall net sales decreased 2.4%, from $187.4 million in the first quarter of 2015, to $182.8 million in this year’s first quarter. 

Net sales in the company’s U.S. and Canada segment were $113.1 million, compared to $109.9 million in the first quarter of 2015, an increase of 2.9%. Food service sales remained strong during the quarter, growing 8.9% versus last year, partially offset by a reduction in net sales in the business-to-business channel. Retail sales were in-line with the prior-year quarter, the company reported.

Net income for first quarter 2016 was $0.7 million, declining from net income of $3.1 million in the prior-year first quarter.

“During the first quarter of 2016, our core food service channel delivered its 12th consecutive quarter of volume growth, despite continued softness in restaurant traffic,” said William Foley, chairman and CEO of Libbey Inc. “This further demonstrates our market strength and continued commitment to this important part of our business. Improving performance in our other channels continues to be a priority and is critical to the long-term success and potential growth profile of our business.”

Foley added, “Over the past several months, we have made initial strides across all of our key strategic priority areas, including improving our capability to develop innovative new products, strengthening relationships with our customers across the globe and simplifying our business to enable it to operate more efficiently and effectively. We are actively pursuing strategic improvements to address these needs and anticipate that this work will progress for the balance of the year.”