14 January 1999: US-based glassware maker Libbey Inc. said it will close a plant in Canada, eliminating 560 jobs, or 14% of its workforce, as it realigns operations to focus on tableware and phase out…
14 January 1999: US-based glassware maker Libbey Inc. said it will close a plant in Canada, eliminating 560 jobs, or 14% of its workforce, as it realigns operations to focus on tableware and phase out bottles and containers. Libbey said the move will result in one-time fourth-quarter charges of US$ 27 million, or US$ 0.92 a share, after tax. It added that, after accounting for the charges, it expects to report a fourth-quarter loss of US$ 0.47 to US$ 0.52 a share. The company, the country“s largest producer of glass tableware, earned US$ 9.8 million, or US$ 0.58 a share, in the fourth quarter of 1997 and analysts polled by First Call expected it to earn 64 cents a share in 1998“s fourth quarter. The Toledo, Ohio-based company said it will close or sell its manufacturing and distribution facility in Wallaceburg, Ontario, and realign production of its glass making facilities in the United States and a joint venture in Mexico. “The decision tightens the company“s focus on its key glass tableware customers while exiting the manufacturing of low-margin niche glass containers,” Chairman John Meier said. Meier said the realignment should add between US$ 4.5 million and US$ 5 million, or US$ 0.16 to US$ 0.18 a share, to the company“s operating income this year. “We expect moderate growth in the markets we serve in 1999, as the US economy is expected to be less than robust,” he said. He said the company expected growth in earnings of 18% to 20% in 1999, or US$ 2.50 to US$ 2.55 a share, excluding the effect of the restructuring charges. The company earned US$ 36 million, or US$ 2.27 a share, in 1997. The company also said it expected to take an additional charge in the first quarter of this year of about US$ 2 million, or US$ 0.7 a share, related to severance benefits for the 560 employees being cut from its work force of 4,000 in North America.