11 February 1999: US-based Libbey Inc. will take a US$ 2 million charge in the first quarter to make severance payments after closing its Wallaceburg, Ontario plant, the company said in a recent state…
11 February 1999: US-based Libbey Inc. will take a US$ 2 million charge in the first quarter to make severance payments after closing its Wallaceburg, Ontario plant, the company said in a recent statement. But the largest North American glass tableware maker also said that realigning its operations would generate savings of US$ 4.5 million this year. Libbey“s comments came after reporting a fourth quarter loss of US$ 10 million or US$ 0.49 a share, compared to earnings of US$ 17.8 million or US$ 0.58 a year ago. The fourth quarter 1998 loss included a US$ 20 million charge also connected to the reshuffling of production capacity and the closing of the Wallaceburg plant. Excluding the US$ 20 million charge that translated into US$ 0.68 a share, the company would have earned US$ 0.19 a share in the fourth quarter. “We made tough decisions in 1998 that will make us a better, more profitable company,” Chairman John Meier said. Meier said the company had closed the Wallaceburg plant to exit the bottleware market, part of its larger plan to cut fixed costs and focus on core businesses. He said a new Internet site, a beefed-up marketing and sales staff, and new product development should boost business. “Lower manufacturing costs, investments in new technologies and marketing programmes, and a continuing effort to expand through acquisitions will help us drive faster earnings growth,” he added. The company“s 1998 net income came to US$ 25.4 million or US$ 1.42 a share, including the charge, compared to US$ 36.1 million or US$ 2.27 a year ago.