Facing what the glassware manufacturer called soft market conditions in several regions and channels, Libbey maintained that its second quarter outpaced its expectations, with modest sales growth in the U.S.
Net sales in the second quarter ended June 30, 2019, were $206.2 million, a decrease of 3.5%, or a decrease of 2.5% in constant currency versus the prior-year period. Net sales in the U.S. and Canada segment increased 0.3%, primarily driven by higher volume and price realization, partially offset by unfavorable channel and product mix.
Second quarter net loss was $43.8 million, compared to net income of $4 million in the second quarter of 2018. Net loss in the second quarter of 2019 was affected by non-cash impairment charges for goodwill and an intangible asset totaling $46.9 million in the quarter.
“I am pleased to report that Libbey delivered a solid second quarter performance with operating results that outpaced expectations,” said Mike Bauer, CEO of Libbey. “Although modest sales growth in our USC [U.S. and Canada] segment was more than offset by declines and soft market conditions in EMEA and Latin America, our e-commerce business continues to make solid contributions to our quarterly results, aiding growth in our USC retail business and advancing our efforts to bring Libbey’s industry-leading products to a broader collection of customers.”
Bauer continued, “The company’s intense focus on disciplined spending and strong operating performance in our manufacturing plants helped drive a 90-basis-point increase to gross profit margin, a 22.8% increase to adjusted income from operations and, importantly, an improvement in cash generation. I’m proud of the organization’s efforts toward sharpening our focus and better leveraging Libbey’s market-leading position and competitive advantages to drive positive results in the face of continued headwinds resulting from soft market conditions in several of our key regions and channels.”