Net sales were down 1 percent to $181.6 million in the quarter, which ended on March 31. Sales in Libbey’s Americas segment were down 1.3 percent, including an 8.1 percent decline in sales to the retail channel and a 1.0 percent decrease in sales in their foodservice channel, offset by an 8.2 percent gain in sales to the business-to-business channel. Stephanie Streeter, Libbey’s CEO, said U.S. sales felt the impact of the severe weather through much of the country in January and February.
Streeter said, “First quarter revenues were negatively impacted by the severe weather in much of the United States in January and February; however, we saw improving trends during March. Higher energy costs, both in natural gas and electricity, packaging price increases and currency fluctuation, largely in the Americas, provided headwinds during the quarter. Our efforts over the last two years have strengthened our cost position considerably, and we are now focused on maintaining our hard-won margin increases and profitably growing our business,”
Sales in its Europe-Middle East-Africa segment were up 0.5 percent and sales in Libbey’s U.S. Sourcing were $17.7 million in the first quarter of 2014, compared to $17.5 million in the prior-year quarter, as sales of World Tableware and Syracuse China flatware and dinnerware increased 1.4 percent.
Selling, general and administrative expenses climbed 9.4 percent in dollars and 144 basis points as a percentage of sales, to 15.8 percent. Earnings before interest and income taxes (EBIT) were $3.1 million in the first quarter of 2014, compared to $11.1 million for the first quarter of 2013.
Streeter continued, “We look forward to a stronger sales environment in the remaining three quarters of 2014 and the opportunity to better leverage our global capabilities.”
