Libbey Work Stoppage Impacts Results

Libbey Inc. pointed to a work stoppage as impacting its results for the fourth quarter ended December 31, 2016, as well as full fiscal year results.

The company reported its full-year 2016 net sales at $793.4 million, down 3.5% versus the prior year, and its net income at $10.1 million, down $56.3 million versus the prior year. Adjusted EBITDA was $109.8 million, down $6.4 million versus the prior year.

The company estimated that its Toledo work stoppage negatively impacted net sales by $7 million to $9 million and pre-tax income by $7 to $8 million.

Libbey reported that its net sales in fourth quarter were $205.8 million, compared to $219.1 million in the prior-year fourth quarter, a 6.1% decrease. Adjusted EBITDA in fourth quarter 2016 was $22.8 million, compared to $31 million in fourth quarter 2015.

Fourth quarter net sales in the U.S. and Canada segment were $129.5 million, a decrease of 7.3% versus net sales of $139.8 million in fourth quarter 2015. The decrease was primarily driven by lower retail and business-to-business net sales, which were down 17.2%  and 6.9%, respectively, compared to fourth quarter 2015. Food service net sales decreased 1.4% compared to the prior-year fourth quarter.

William Foley, chairman and CEO, Libbey, added, “Our food service unit volumes increased slightly, despite the impact of a Toledo work stoppage and an ongoing decline in restaurant traffic trends. By executing against our business strategy, we have continued to outperform our industry, and we are encouraged by indications that Libbey is continuing to win market share amidst a challenging, competitive environment.”

Foley added, “2016 was an important year from an operational standpoint, as we began to make proactive changes to ensure the business is adapting to shifts in consumer behaviors and addressing legacy issues of our business. Our new product development capabilities are improving, we’ve rationalized and streamlined our product portfolio and we’re taking new approaches to the ways in which we evaluate our manufacturing footprint to maximize profitability. We are seeing positive impacts from many of these initiatives that we prioritized during the year.”