Libbey Inc. one of the largest glass tableware manufacturers in the world, today reported results for the third quarter-ended September 30.
“Our core foodservice channel continues to be very strong around the globe in the face of declining restaurant traffic trends. This is the sixth consecutive quarter of growth in foodservice for the Company. Unfortunately, that was offset in the third quarter by weakness in our retail and business-to-business channels,” said Stephanie A. Streeter, chief executive officer of Libbey Inc. “Given the macro environment and the significant impact of currency, we delivered a solid performance and the fundamentals of our business remain strong. Even though our top-line growth was weaker than expected, we achieved 15.3 percent Adjusted EBITDA margins, in-line with our expectations and ahead of prior year, largely driven by favorable price-mix, as we continue to gain share in our most profitable and important foodservice channel. However, the global economic environment continues to be inconsistent, and as a result, we believe it’s prudent to adjust our outlook for the remainder of 2015. We are now forecasting sales growth of approximately one percent, on a constant currency basis, and forecast Adjusted EBITDA margins of approximately 14 percent.”
Sherry Buck, chief financial officer, said “Despite the somewhat tepid economic environment that we saw developing throughout the quarter, we continued to generate strong free cash flow in the quarter of $9.3 million. We are on track to return more than 50 percent of our free cash flow to shareholders through dividends and share repurchases, and we have strong liquidity with $30 million in cash on hand and approximately $84 million available on our ABL. We remain committed to our balanced capital allocation program that we announced earlier this year.”
Libbey held a conference call for investors on Thursday, November 5, 2015. A replay will be available for 7 days. Details for investors are available on the company’s website.