Libbey Inc., one of the world’s largest glass tableware manufacturers, reported results for the second quarter ended June 30, 2019.
Second-quarter 2019 Financial & Operating Highlights
- Net sales were 206.2 million USD, a decrease of 3.5 percent, or a decrease of 2.5 percent in constant currency versus the prior-year period.
- Gross profit margin was 22.7 percent, an increase of 90-basis points versus the prior year.
- Net loss was 43.8 million USD, compared to net income of 4.0 million USD 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 totalling 46.9 million USD in the quarter.
- Adjusted Income from Operations increased 22.8 percent to 15.9 million USD.
- Adjusted EBITDA was 25.3 million USD, compared to 26.8 million USD in the prior year’s second quarter. Adjusted EBITDA improved 4.4 percent after further adjusting for a negative 2.7 million USD currency impact.
- Net cash provided by operating activities improved 10.7 million USD, driving a Free Cash Flow improvement of 12.9 million USD compared to the second quarter of 2018.
“I am pleased to report that Libbey delivered a solid second-quarter performance with operating results that outpaced expectations,” said Mike Bauer, chief executive officer of Libbey.
“Although modest sales growth in our USC segment was more than offset by declines and soft market conditions in EMEA and LATAM, 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 percent 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.”