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[August 2007]
Libbey Announces Second Quarter Results
Libbey Inc (Toledo, OH, USA) has announced that sales increased 31.1% to US$207.1 million in the second quarter of 2007 from US$158 million in the prior-year second quarter. Libbey reported net income of US$4 million for Q2 2007 compared to a net loss of US$9.6 million in Q2 2006.North American Glass sales increased 39.9% to US$147 million. The increase in sales was attributable to the consolidation of the sales of Crisa, the company's former joint venture in Mexico, a 16% increase in shipments to export customers outside of North America and a more than 7% increase in shipments to foodservice, retail and industrial glassware customers.
In addition, North American Other sales increased 6.1% as shipments of Syracuse China products increased 9.6% and sales of World Tableware products were up 5%.
International sales increased 26% as the result of increased shipments to customers of Royal Leerdam and Crisal and the first full quarter of shipments from Libbey China. On a pro forma basis, giving effect to the consolidation of Crisa as if it occurred on 1 January 2006, sales were up 8.3% in total.
EBIT increased to US$21.2 million from a loss of US$4.1 million in Q2 2006. North American Other, benefiting from higher sales of Syracuse China and World Tableware products and significantly higher production activity at Syracuse China during the quarter ended 30 June 2007, reported EBIT for the second quarter of 2007 of US$4.3 million compared to US$2.7 million in Q2 2006.
Libbey's overall reported EBITDA was US$31.9 million in Q2 2007, compared to pro forma EBITDA of US$27.2 million in Q2 2006.
John Meier, Chairman and CEO, commenting on the quarter said: "We are pleased with the strength of our North American Glass business performance. We experienced healthy increases in foodservice, retail and industrial glassware shipments during the quarter. Sales to European glassware customers were also very strong. Crisa, our Mexican glass tableware operation, continued to contribute as planned during the completion of the consolidation of the facilities in Mexico. We are also pleased with the performance of our International operations. For our total business, we achieved during the quarter the highest income from operations margins and EBITDA margins that we have achieved since the second quarter of 2004.
"In the face of some weakness in select USA market niches, we expect third quarter sales to continue to be solid and to be in the range of $200 million to $205 million and EBITDA to be between $23 million and $25 million in the third quarter of 2007.
"As the result of a very strong second quarter, finishing above our EBITDA guidance, and given the strong sales performance, improving margins and our continued expectation for savings from our Crisa operations later in 2007, we are increasing our guidance for 2007 EBITDA to a range of $103 million to $109 million on expected sales of slightly over $800 million."
www.libbey.com
ENDS