Libbey's profit in Q2 reverses loss

Local firm makes $12.$M; says strategic plans working

Fountain ware is displayed at Libbey’s Toledo showroom. The firm has cut costs and reorganized, CEO Stephanie Streeter said.

Glassware maker Libbey Inc. said Tuesday it swung to a second-quarter profit this year after losing more than $10 million in the second quarter of last year.

The Toledo-based company reported a profit of $12.4 million for the quarter, or 57 cents per share. Last year, Libbey lost $10.1 million in the second quarter, or 49 cents per share, though the loss included a one-time expense of $31 million on redemption of debt.

Sales for the quarter were nearly flat from last year at $209.9 million. The company said weakness in U.S. retail and business-to-business sales was offset by better sales in the company’s other markets.

Libbey continues moving toward a slate of goals outlined by Chief Executive Officer Stephanie Streeter a year ago. The company has worked to cut costs and reorganized both its business structure and its manufacturing base.

Tuesday, during a conference call with investors and analysts, Ms. Streeter again said her strategic plan, called Libbey 2015, is working.

“The year should be very good and should be on track with the goals and expectations that we’ve set,” Ms. Streeter said. “In fact, I’d say we’re doing exactly what we said we would, and frankly, overall, we’re a bit ahead of schedule.”

The company’s plan to realign its North American production is under way; some equipment and capabilities are being moved from Libbey’s plant in Shreveport, La., to plants in Monterrey, Mexico, and here in Toledo.

No new jobs are expected in Toledo or Monterrey. A company spokesman said Tuesday that 65 people were laid off from Shreveport and 17 more retired as result of the change. The company won’t say what products will be moved to Toledo.

Libbey forecasts annual savings of $7 million to $9 million from the change, with some benefits showing up in the year’s fourth quarter and full annual savings expected in 2014.

The company said Tuesday it had some unused capacity in the second quarter because of the changeovers, and it expects more of that in the third quarter.

Officials cautioned the effects of that will show up in the next quarter’s financial results. “We will have a slight bump in the third quarter,” Ms. Streeter said. “That’s all planned and all explained by the realignment of our North American production.”

Libbey’s stock closed at $23.55 Tuesday, down 11 cents or about 0.5 percent.