Libbey sees 2Q sales up 4%

Glassware maker Libbey Inc. forecast 2Q net sales growth of 3.5 to 4.5% and reiterated its full-year 2007 net sales forecast of over USD 800 million, the company said in a statement on 21 June 2006.

Glassware maker Libbey Inc. forecast 2Q net sales growth of 3.5 to 4.5% and reiterated its full-year 2007 net sales forecast of over USD 800 million, the company said in a statement on 21 June 2006. Excluding the impact of its Vitrocrisa acquisition, Libbey expects 2Q revenue of between USD 150 to 151 million. As part of its acquisition of full ownership in Crisa, Libbey“s former Mexican joint venture with Vitro, Libbey said it will integrate two of Crisa“s manufacturing facilities into one over three years. The plant integration and other reorganization of Crisa“s operations are expected to reduce costs by about USD 13 million to USD 15 million per annum from the 2H of 2007. Libbey expects to make savings thanks to Crisa“s lower hourly wages, the end of a profit-sharing agreement with Vitro and liabilities that were transferred to Vitro post-acquisition. Libbey sees USD 20 million of capital expenditures in 2006 and 2007 as part of the reorganization and USD 16 million of charges, primarily in the 2Q of 2006, related to the integration of the two plants. EBIT in the 2Q is expected to be flat at about USD 8.5 million, while 2007 EBIT is expected to range between USD 55 and USD 65 million. Crisa“s net sales in the 2Q will be flat at about USD 49 million, while EBIT will rise to about USD 3 million from USD 800,000 in the 2Q of 2005, Libbey said.