Libbey reported its first quarter revenue was down with a net loss of $78.7 million in the period ending March 31. The loss comes on the heels of the company filing for a court-supervised reorganization under Chapter 11.
The company reported first quarter net sales of $150.5 million, a decrease of 14% compared to $181.9 million in the prior-year period.
Net sales in the U.S. and Canada segment decreased 12.8%, primarily driven by lower volume and unfavorable channel mix, partially offset by favorable price and mix of product sold, the company reported.
“For the majority of the quarter, our operating performance exceeded our initial forecast. However, beginning in mid-March, our business results were materially impacted by COVID-19,” said Mike Bauer, Libbey’s CEO, in announcing the earnings.
Bauer added that mandated shutdowns across a large part of the U.S. and global economy affected the business across its key end markets, with the foodservice industry being one of the most directly impacted.
Bauer also commented on the company’s recent Chapter 11 reorganization filing and said Libbey is convinced the outcome of the process will better position the company for the future.
“We are in truly unprecedented times in Libbey’s 200-year history, and we remain focused on providing our end users and customers with superior quality products that are environmentally sustainable, beautiful and durable. We are already seeing improvements as states lift stay-at-home orders and we continue to execute against our previously announced planned turnaround and cost reduction efforts,” he said