Page 20 - Glass Machinery Plants & Accessories no. 3/2018

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LIBBEY

FOURTH QUARTER AND FULL-YEAR 2017

FINANCIAL RESULTS

Libbey Inc., one of the largest glass tableware In Latin America, net sales increased 14.7% (an
manufacturers in the world, has reported results for increase of 11.3% excluding currency fluctuation) as
the fourth quarter ended 31 December 2017. a result of higher net sales in the business-to-business
Net sales in the fourth quarter of 2017 were USD and retail channels, primarily due to favourable price
224.0 million, compared to USD 205.8 million in and mix of product sold and a favourable currency
the prior-year fourth quarter, an 8.8% increase (or impact, partially offset by expected lower volume as a
an increase of 6.7%, excluding a USD 4.4 million result of margin improvement initiatives.
currency impact.) Net sales in the EMEA segment were favourably
Net loss in the fourth quarter 2017 was USD 7.2 impacted by price and mix of product sold in the
million, compared to a net loss of USD 2.2 million foodservice and retail channels, as well as a USD
in fourth quarter 2016. The fourth quarter 2017 1.9 million favourable currency impact for the fourth
included a USD 6.7 million unfavourable revaluation quarter of 2017 versus the prior-year quarter.
of net deferred tax assets as a result of the latest US Net sales in Other were down primarily as a result of
tax reform. lower sales in China.
Adjusted EBITDA in fourth quarter 2017 was The company’s effective tax rate was 202.4% for
USD 24.2 million, including a USD 2.8 million the fourth quarter of 2017, compared to 165.0% in
unfavourable currency impact related to the the prior-year quarter. The high effective tax rates
company’s tax provision, compared to USD 23.5 relative to the US statutory rate of 35% were driven
million in fourth quarter 2016. by several items, including a 2017 charge of USD
“We were pleased to see the business return to sales 6.7 million related to the revaluation of net deferred
growth during the fourth quarter. This and several tax assets caused by the U.S. tax reform, low pre-tax
other performance indicators give us confidence that income relative to unfavourable tax adjustments for
our strategies to drive long-term, profitable growth non-deductible expenses, the timing and mix of pre-
are gaining traction,” said Chief Executive Officer tax income earned in tax jurisdictions with varying tax
William Foley. “We saw improved sales contributions rates, and the impact of foreign exchange gains and
from both our new e-commerce platform and new losses.
products during the fourth quarter. Profitability in our Net sales for full-year 2017 were USD 781.8 million,
EMEA and Latin America segments also improved for compared to USD 793.4 million for full-year 2016, a
a second consecutive quarter, and we’re continuing decrease of 1.5% (or a decrease of 1.6% excluding the
to implement additional opportunities to improve our USD 1.1 million currency impact).
margin profile.” Net loss for full-year 2017 was USD 93.4 million,
Net sales in the US and Canada segment increased compared to net income of USD 10.1 million during
8.2%, driven by segment volume and favourable price full-year 2016; 2017 included a USD 79.7 million non-
and mix of product sold in the foodservice channel. cash goodwill impairment charge associated with the
Latin America segment, and a USD 6.7 million charge
related to the revaluation of net deferred tax assets as a
result of the latest US tax reform.
Adjusted EBITDA was USD 70.6 million for full-year
2017, compared to USD 111.6 million for full-year
2016.
Net sales in the US and Canada segment were lower
Put your company ASK due to lower price and mix of product sold, partially
on the web! FOR THE offset by increased volumes and a favourable currency
WEB SERVICE impact.
In Latin America, net sales declined as a result of
lower net sales across the retail and business-to-
! ҃ CONTACT US AT: business channels, specifically due to lower volume and
CHARGE www.glassonline.com unfavourable currency. The decline was partially offset <
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by favourable price and mix.

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