Libbey posts 2.2% increase in global sales, $23.6M profit

Led by rapid growth in China, Libbey Inc. saw a modest 2.2 percent increase in worldwide sales last year, though the Toledo-based glass maker couldn't replicate its 2010 earnings.

On a conference call Thursday, Libbey officials said the company made a profit of $23.6 million in 2011, or $1.14 per share, on global sales of $817 million. In 2010, Libbey earned $70.1 million, or $3.51 per share, on sales of $799 million.

Most of the 2010 profit came from a one-time gain of more than $58 million from the redemption of debt notes in the first quarter, company officials said. Excluding that gain, 2010 earnings per share would have been 86 cents, the company said. "We feel pretty positive about what we've accomplished in 2011," Chief Executive Officer Stephanie Streeter said.

Among the successes the company sought to highlight was a $52.5 million reduction in gross debt. It also reported a more than 49 percent increase in Chinese sales, partially because of a broadened distribution network. In 2010, Libbey grew Chinese sales 29 percent, and Ms. Streeter said the company expects continued growth in China moving forward.

"We're really excited about our continued prospects there," she said.

For the year, sales in Europe grew 3 percent, while sales in Mexico dipped 1.9 percent. In the United States and Canada, food service glassware sales increased 2 percent; retail sales rose up 2.7 percent. The company's fourth-quarter results, however, were weaker than expected.

"The start to that quarter was mixed … and then it basically fell off a cliff," Ms. Streeter said. "The full quarter was well below what we had anticipated. That was across all geographies, all business units, except China. Now we go into November and December and we had really good months, but we just couldn't pull our ourselves out of the hole October created. We have seen over the last couple of years a pattern where October is slightly below in each of the years, but this was a dip well below our expectations."

Fourth-quarter sales were $214.8 million, down 3.6 percent from 2010. Libbey posted a profit of $2.1 million, or 10 cents per share.

In 2010's fourth quarter, Libbey posted a $2.3 million profit, or 13 cents per share.

"We're feeling pretty good that October was an anomaly and shouldn't repeat," Ms. Streeter said. "It's fairly unusual to start the year off with a January that's as strong as what we've seen. We're feeling positive."

Investors didn't appear to share that sentiment.

Libbey's shares started the day at $15.23 and had fallen 11.3 percent to $13.50 shortly after the opening bell. It rebounded slightly, closing at $13.99 -- down 8.1 percent.

Contact Tyrel Linkhorn at: tlinkhorn@theblade.com or 419-724-6134.