Sunday, Nov 19, 2017
One of America's Great Newspapers ~ Toledo, Ohio

Retail

Libbey reports quarterly loss, lower revenues

Libbey Inc., the Toledo maker of tabletop glassware, lost $78.8 million in the third quarter after taking a charge of nearly $80 million following a revaluation of its Latin American operations.

Company officials said weaker-than-expected performance in Mexico combined with a highly competitive market and poor exchange rate between U.S. and Mexican currencies forced them to lower the book value of their operations and take the write-off.

“While we are disappointed in the need to write off this goodwill, we continue to view our Latin America operations as a strategic asset that can contribute to improved business performance going forward,” Chief Financial Officer James Burmeister said in a statement.

On a per-share basis, that translated to a loss of $3.57. In last year’s third quarter, Libbey earned $2.9 million, or 13 cents a share.

Libbey’s third quarter revenues slipped $9.5 million — or almost 5 percent — to $187 million. Libbey attributed $4 million of that decline to interruptions caused by a pair of major earthquakes in Mexico and several hurricanes that hit the United States in August and September. 

In a statement, Chief Executive Office Bill Foley said:

"Competitive pressures and challenging market conditions, as well as a handful of unusual weather-related events and natural disasters, hindered our performance during the quarter. However, the improvements we expected to drive performance in the second half, such as improved profitability in EMEA [Europe, the Middle East and Africa} and the launch of our e-commerce capabilities, began to materialize in the third quarter, and we look for them to contribute to a stronger fourth quarter.”

Through the first nine months of the year, Libbey has lost $86.2 million on net sales of $557.8 million. Over the same period in 2016, Libbey reported a $12.3 million profit on sales of $587.6 million.

After the earnings report, Libbey’s shares sunk more than 25 percent on Tuesday, closing at $6.84. That’s Libbey’s lowest closing price in nearly eight years.

Contact Lauren Lindstrom at llindstrom@theblade.com, 419-724-6154, or on Twitter @lelindstrom.

Click to comment

Quis autem vel eum iure reprehenderit qui in ea voluptate velit esse quam nihil molestiae consequatur, vel illum qui dolorem?

Temporibus autem quibusdam et aut officiis debitis aut rerum necessitatibus saepe eveniet.

Copyright © 2015 Toledo Blade

To Top

Fetching stories…