19 February 1998: Reporting a decline in sales to select mass merchants that was partially offset by the benefits of recent acquisitions, Libbey Inc. announced that its diluted earnings per share for …
19 February 1998: Reporting a decline in sales to select mass merchants that was partially offset by the benefits of recent acquisitions, Libbey Inc. announced that its diluted earnings per share for the fourth quarter declined to US$ 0.58 from US$ 0.65 in the same period last year. The earnings per share were consistent with the estimate announced by the company on 9 January 1998. For the full year, the company recorded record sales and profits. The American glassmaker also said it has decided to leave the factory outlet mall business, after most of its factory outlet stores have been operating at a loss. For the fourth quarter ended 31 December 1997, sales increased 8.5% to US$ 124.7 million from US$ 115 million in the year-ago quarter. A decline in the company“s core glassware sales to select mass merchants was more than offset by improved sales to foodservice customers and incremental sales associated with the recent acquisition of World Tableware and Libbey“s distribution agreement with Vitrocrisa, the company“s new joint venture in Mexico. Earnings before interest and income taxes fell 1.6% to US$ 19.5 million from US$ 19.8 million in the fourth quarter last year. The addition of equity earnings of US$ 2.7 million from the company“s new joint venture offset a US$ 2 million decline in income from operations. Net income as a percentage of sales was 7.9%, as compared with 8.6% in the year-ago quarter. It declined 1.4% to US$ 9.8 million, or US$ 0.58 per share (diluted), from US$ 9.9 million, or US$ 0.65 cents per share (diluted), in the year-ago period. The company experienced increased interest expense associated with debt from recent acquisitions and a reduction in its effective tax rate, primarily due to lower state taxes. For the full year of 1997, sales increased 3.6% to US$ 412 million from US$ 397.7 million in 1996, principally due to increases at the company“s Syracuse China subsidiary and the inclusion of recently acquired businesses. Earnings before interest and income taxes increased 7% to US$ 73.3 million from US$ 68.5 million last year, and income from operations was up 4.9% to US$ 70.5 million, from US$ 67.2 million in 1996. Profit growth was attributable to improved sales mix and the addition of profits from recently acquired businesses. Net income increased 11% to US$ 36.1 million from US$ 32.5 million a year earlier, and diluted earnings per share grew 7.1% to US$ 2.27 from US$ 2.12 in 1996. The sales and net income amounts are the highest ever reported by the company. Libbey also announced that its Board of Directors declared the company“s regular quarterly cash dividend of 7.5 cents per share. The dividend will be paid on 11 March 1998 to shareholders of record as of 25 February 1998. As of 2 February 1998, Libbey had 17,580,931 shares outstanding.