CEO: Libbey showing resilience, 2008 starting strong
Libbey Inc. (NYSE: LBY) CEO John Meier said the maker of tableware products is battling a sputtering economy by raising prices and diversifying its products and clients. Meier made the comments during a midday conference call.
“Looking ahead to 2008, Libbey is not immune to the travails of the U.S. economy. Admittedly, our core food-service business has been touched,” Meier said. “The necessary price increases implemented in late-2007 will provide some respite. We will just have to fight even harder for any and all new installations that may be available to us and rely on our installed base for existing repeat orders.”
The chief executive said the firm’s broadened international business and diversified North American business will serve the company well.
“Our business, as it did in 2007, is showing resilience in strategic areas, thanks to our increasing diversity both from the perspective of client groupings and geographic diversity,” Meier said.
The CEO also said 2008 has started out on a positive note.
“We have started out very strong in 2008 in our retail business,” Meier said. “While one month does not make a quarter, I’m happy to report that January was up in retail in solid double-digits and we are cautiously optimistic for the year in total.”
Last week, he said Libbey learned it increased its market share to 34.7% of the casual beverage-ware market, up from 28% a year earlier. The closest competitor only has an 11.1% market share, Meier said.
Before the opening, Libbey posted a fourth-quarter loss of $5 million, or $0.34 per share, up from a loss of $8.5 million, or $0.60 per share, a year earlier. Excluding a tax valuation allowance, Libbey’s net income totaled $0.71 per share. Wall Street analysts were expecting a loss of $0.04 per share.
Quarterly sales rose 5.5% to $225.1 million, from $213.9 million during the same period of 2006. The quarterly sales were an all-time record for the company, Meier said. The results beat analysts’ projection of $221.4 million in revenue.
In afternoon trading, LBY shares are up 9.78%, or $1.41, at $15.89. Over the last 52 weeks, shares have ranged from $10.97 to $24.65.
