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[Nov 2006]
Libbey Announces Third Quarter Results
Libbey Inc (Toledo, OH, USA) has announced that sales increased 35.2% to US$183.3 million from US$135.6 million in the prior year third quarter. Libbey reported a net loss of US$3.3 million for the third quarter ended 30 September 2006, as compared with net income of US$4.2 million in the prior year quarter.
The increase in sales was primarily attributable to the consolidation of the sales of Crisa, the company's former joint venture in Mexico, a more than 10% increase in shipments to retail, Royal Leerdam and Crisal glassware customers and World Tableware products, and increases of more than 3.5% in shipments of Traex and Syracuse China products. Shipments to foodservice glassware customers were down slightly as the installation of a new warehouse management software system in Toledo resulted in missed shipments of approximately US$3 million of foodservice glassware. On a pro-forma basis giving effect to the consolidation of Crisa, sales were up 4.4% in total.
The company reported income from operations of US$10.8 million during the quarter, as compared to income from operations of US$10.0 million in the year-ago quarter. Income from operations, excluding special charges, was US$10.5 million during the year-ago quarter. Factors contributing to the increase in income from operations were the consolidation of Crisa, higher sales and higher production activity. Partially offsetting these improvements were an unfavourable mix of sales amounting to US$2.5 million, driven by a reduction in foodservice sales and the impact of Crisal close-out sales, higher distribution costs of US$1.6 million, primarily related to the increased sales and US$0.5 million in increased pension and post-retirement welfare expenses.
Libbey reported that adjusted EBITDA increased to US$20.2 million in the third quarter of 2006 as compared to US$19.1 million in the year-ago quarter. The additional EBITDA provided by Crisa was partially offset by an increase of almost US$2.2 million in charges related to hedge accounting for natural gas contracts.
Interest expense increased US$12.2 million compared with the year-ago period as a result of the refinancing consummated on 16 June 2006, which resulted in higher debt and higher average interest rates.
www.libbey.com
ENDS