Libbey Q4 Net Sales Decline

Libbey has reported a decrease in its net sales and a wider net loss for the fourth quarter. The company stated the decrease was due to a challenging market and a shortened fourth quarter 2019 holiday season.

For the three months ended December 31, total sales were $208.9 million, a decrease of 1.3% versus the prior-year period. In addition, the company reported a net loss of $17.3 million, compared to a net loss of $4 million in the fourth quarter of 2018. Net loss in the fourth quarter was affected by a $18.3 million non-cash impairment of long-lived assets in the EMEA segment.

“I’m pleased to report Libbey delivered solid fourth quarter results, as our focus on operating performance and disciplined investment continues to drive improved gross margins and cash flow,” said Mike Bauer, CEO of Libbey. “Our teams continue to demonstrate the ability to execute well in a challenging market that was further impacted by a shortened holiday season in Q4 2019. Despite these headwinds we delivered growth in our core USC segment, including meaningful gains in the food service channel.”

For the full fiscal year, net sales decreased 1.9% to $782.4 million versus the prior year. Its year-end net loss was  $69 million, compared to a net loss of $8 million in 2018.

As for its 2020 outlook, Bauer stated the company anticipates uncertain, global macroeconomic conditions, as well as a challenging competitive environment, which will continue throughout much of 2020.

Libbey is forecasting net sales to be flat to an increase of low-single digits and adjusted EBITDA margins between 9 and 10%.