The US glass tableware operation Libbey Inc. has announced sales and net income at record levels in 1996. For the fourth quarter, improved profit margins contributed to a 10.9% growth in net income to…
The US glass tableware operation Libbey Inc. has announced sales and net income at record levels in 1996. For the fourth quarter, improved profit margins contributed to a 10.9% growth in net income to US$ 9.9 million. For the year ended 31 December 1996, sales rose 11.2% to US$ 397.7 million from US$ 357.5 million in 1995. Income from operations grew by 6.3% to US$ 67.2 million from US$ 63.2 million a year earlier. Net income totalled US$ 32.5 million, or US$ 2.12 per share, up 8.4% from US$ 30 million, or US$ 1.97 per share, in 1995. Mr. John F. Meier, chairman and CEO, commented, “The year 1996 was another record year for Libbey. Sales gains were notable although our performance varied among markets. Food service industry sales were solid through most of 1996, although the growth rate slowed late in the year. Sales to industrial customers remained strong, and Libbey Canada continued its solid sales growth.” According to the company, income from operations as a percentage of sales was 16.9% for 1996 compared with 17.7% in 1995. Greater sales of lower gross margin products, higher wage and benefit costs and increases in the price for natural gas contributed to lower gross profit margins. In addition, costs associated with the company“s centralisation of certain administrative functions and the inclusion of lower-margin Syracuse China sales adversely affected income from operations profit margins. Net income as a percentage of sales was 8.2% compared with 8.4% in 1995. The reduction, said Libbey, is primarily attributable to lower operating profit margins only partially offset by lower interest expense and taxes as a percentage of sales. Mr. Meier, commenting on the outlook for the company, said, “We are addressing 1997 with optimism. The hard work of re-engineering Libbey will provide more tangible results in 1997. The new systems and ways of doing business implemented over the last two years throughout the company is resulting in a more dynamic and efficient Libbey. And the new products and invigorated sales and marketing effort at Syracuse China hold the promise of continuing the growth trend experienced in late 1996. Our goals, announced in 1996, remain to achieve US$ 500 million in sales in 1998, grow income from operations by 12 to 13 percent per year on average through 1999 and increase net income by double-digit growth rates.” Libbey“s Board of Directors declared the company“s regular quarterly cash dividend at 7.5 cents per share payable on 10 March 1997, to shareholders of record as of 25 February 1997.