Libbey Inc., on 11 February 2009 reported a massive loss of USD 68.9 million, or USD 4.68 a share, for the 4Q of 2008, compared to a loss of USD 5 million, or USD 0.34 a share, for the same quarter of…
Libbey Inc., on 11 February 2009 reported a massive loss of USD 68.9 million, or USD 4.68 a share, for the 4Q of 2008, compared to a loss of USD 5 million, or USD 0.34 a share, for the same quarter of 2007. The retail and commercial glassware company, whose prosperity is closely tied to the struggling hospitality industry, said its revenues had fallen over 17% to USD 186.6 million in the 4Q 2008, compared with USD 225.1 million in the same period of 2007. The company announced that its board had chosen to suspend its annual USD 0.10 a share dividend in the light of its current economic condition. It also announced that it would cut capital spending by USD 10 million, impose a 5% pay cut on most US-based salaried employees and a 7.5% pay cut on all officers of the company, and suspend 401(k) matches for all salaried and non-unionized hourly employees. The moves are expected to increase cash flow by approximately USD 50 million in 2009, company officials said. For 2008, Libbey recorded a loss of USD 80.5 million, or USD 5.48 a share, compared to a loss of USD 2.3 million, or USD 0.16 a share in 2007.