Highlighting increased sales in its foodservice and industrial markets, US company Libbey Inc. has announced that, in 1995, its annual sales and net income reached record levels. For the year ended 31…
Highlighting increased sales in its foodservice and industrial markets, US company Libbey Inc. has announced that, in 1995, its annual sales and net income reached record levels. For the year ended 31 December 1995, sales rose 7.1% to US$ 357.5 million from US$ 334.0 million in 1994. Income from operations grew by 6.7% to US$ 63.2 million from US$ 59.2 million last year. Net income totalled US$ 30.0 million, or US$ 2.00 per share, up 12.5% from US$ 26.7 million, or US$ 1.78 per share, in 1994. Income from operations as a percentage of sales remained at 17.7% for 1995. Lower gross profit margins associated with higher manufacturing costs were offset by lower selling, general and administrative expenses as a percentage of sales. Contributing to the increase in manufacturing costs were expenses associated with the re-engineering initiative and higher packaging costs. Net income as a percentage of sales increased to 8.4% compared with 8.0% in 1994. The increase is primarily attributable to consistent operating profit margins and lower interest expense as a percentage of sales. Libbey“s working capital increased by US$ 33.5 million and total assets increased by US$ 65.8 million, primarily attributable to the acquisition of Syracuse China and growth in assets in line with increased sales. Long-term debt increased by US$ 34.7 million as debt reduction in Libbey“s glassware operations was more than offset by the debt incurred with the Syracuse China acquisition.