Libbey expects lower profits due to weaker sales

Glass tableware manufacturer Libbey Inc. said 14 April 2003 that 1Q 2003 earnings would be much lower than anticipated because of higher energy costs and weaker sales, mainly as a result of the extrem…

Glass tableware manufacturer Libbey Inc. said 14 April 2003 that 1Q 2003 earnings would be much lower than anticipated because of higher energy costs and weaker sales, mainly as a result of the extreme winter weather and the war in Iraq. Libbey, based in Toledo, Ohio, said it anticipates earnings of USD 0.13 to USD 0.15 per share on sales of USD 112 million in the quarter, which ended 31 March 2003. A year earlier the company earned USD 0.25 per share. Previously it had estimated 1Q earnings would be in the range of USD 0.22 to USD 0.27 per share. Libbey said disappointing sales decreased its profit forecast by USD 0.06 to USD 0.08 per share, while higher natural gas prices cut the forecast by USD 0.04 to USD 0.05 a share. The company also said it issued USD 100 million of privately placed senior notes. It said proceeds were used to repay debt outstanding under its revolving bank loan. Libby“s debts went up recently due to the acquisitions of Dutch glassware company Royal Leerdam and plasticware maker Traex. Shares of Libbey closed at USD 24.03 in 11 April 2003 trading on the New York Stock Exchange.