Libbey has warned that revenue is likely to be weaker than expected when the company reports its third-quarter results later today (Tuesday October 29).
The Toledo, USA-based glassware firm expects to post revenue of about $204 million for the quarter which ended September 30. That would be about $5 million less than Libbey posted in last year’s third quarter.
It said weak demand weighed on retail sales in the USA, China and Canada. Food service sales also were slower than expected in those markets, though to a lesser degree, Libbey said.
Libbey was also hit by an early September fire that damaged one of the furnaces at its Toledo plant. The company said it expected to take a $2 million hit from that because of underutilised production capacity in the quarter.
The company said it expects to incur between $4 million and $6 million in costs related to the fire in this quarter, though insurance polices may cover some losses.
Stephanie Streeter, Libbey’s CEO, said that while the third quarter was disappointing, officials are pleased with the continuing progress on the company’s strategic plan and its efforts to control costs despite weak US and Chinese markets.
“We are well-positioned in these markets for long-term growth as the economic environment improves, and we continue to see strong results in our other high-growth markets,” she said.
The company cautioned that weak retail sales are likely to continue through the year, though growth in Mexico and Latin America partially will offset the demand issues in the USA, Canada, and China.
Overall, 2013 sales are expected to be slightly less than 2012 sales.