13 May 1999: US-based Libbey Inc. chief executive John Meier recently told shareholders at the annual meeting that the glassware producer aimed to increase sales to US$ 450 million and net income to U…
13 May 1999: US-based Libbey Inc. chief executive John Meier recently told shareholders at the annual meeting that the glassware producer aimed to increase sales to US$ 450 million and net income to US$ 44 million in 1999. The company earned US$ 25.4 million, or US$ 1.42 per diluted share, on sales of US$ 436.5 million in 1998. Excluding a realignment charge in the fourth quarter, earnings would have come in at US$ 37.9 million, or US$ 2.12, for the year, Libbey said. Late last year, Libbey revealed plans to shed a Canadian glassware plant and reallocate production to its US facilities and its joint venture in Mexico. “The plan will give us a new foundation for the future and is expected to increase operating profits by US$ 4.5 million in 1999,” Meier said. Libbey said it was expanding its presence in the foodservice business, introducing new products and using its Web site (http://www.libbey.com), to do business with foodservice clients. “Since the web site was launched in November of last year, it has been accessed in over 60 countries from over 10,000 sites,” Meier said. “Users are downloading our catalogues and getting real-time access to information on our extensive glassware offering. The result is new business. And this is only the start of our application of electronic commerce, for the benefit of our distributors and end-users.” Libbey also said it would consider sweetening its US$ 500 million offer for Oneida Ltd. after the New York-based cutlery giant spurned its bid recently (see GlassOnline report of 6 May 1999). But Oneida has reiterated its desire to remain independent after Libbey said it might up the unsolicited, US$ 30-per-share offer. Citing a long-standing interest in Oneida, Libbey said it would consider raising its bid after being given the opportunity to hold talks with Oneida management and perform due diligence. John Meier, Libbey“s chief executive officer, did not provide specifics on the company“s plans but said in his statement “this is the right direction for both companies, and we will pursue it.” An Oneida spokesman said the company had not changed its stance since it rejected Libbey“s bid. “After careful consideration, Oneida“s board of directors determined that it is in the best interests of the company, its shareholders and all other constituencies for Oneida to remain independent,” the spokesman said.