On 10 November 1995, the chairman and chief executive officer of US-based Libbey Inc., John Meier, stated that he was at ease with analysts“ consensus 1995 earnings estimate of US$ 2.02 a share, prov…
On 10 November 1995, the chairman and chief executive officer of US-based Libbey Inc., John Meier, stated that he was at ease with analysts“ consensus 1995 earnings estimate of US$ 2.02 a share, providing that the fourth quarter was healthy. The company earned US$ 1.78 a share in 1994. In the first nine months of that year it earned US$ 1.21 a share. In the first nine months of 1995 Libbey earned US$ 1.40 a share. For 1996, he said, analysts are looking for US$ 2.25-US$ 2.26 a share (before factoring in acquisition in October 1995 of dinnerware maker Syracuse China). Most growth in Libbey“s “backbone” – its food service segment – will come through further acquisitions, and Libbey is also seeking equity partners for glassware factories in China, India and parts of Latin America, Meier said. Early November“s promotion of former chief financial officer Richard Reynolds to a new post, chief operating officer, will enable Meier to spend more time seeking acquistions and opportunities in emerging markets, Meier said, adding that in food service, Libbey might consider acquiring makers of “everything on top of the table – dinnerware, flatware, lighting accessories, linens,” as well as cookware, plastic ware and other food service needs. Meier pointed out that Libbey wants to complement the glassware lines it offers to bars, hotels, restaurants and others and would like to buy companies whose products could be supplied through Libbey“s strong existing food service distribution network. He claimed that the firm has 65% of the North American food service glassware market – goblets, glasses, vases, salt and pepper shakers, cruets and other items for bars, restaurants, hotels and other customers. Sales in the third quarter increased 4.7% to US$ 89.1 million from US$ 85.2 million a year earlier. Income from operations grew to US$ 19.5 million, up 5.7% from US$ 18.4 million in the same period a year earlier. Net income increased 13.8% to US$ 9.9 million, or 66 cents per share, from US$ 8.7 million, or 58 cents per share, in the 1994 quarter. The net income increase was higher than analysts“ expectations.