Tableware firm Libbey Inc. increased sales in 2004 to nearly USD 545 million, but profits fell to less than USD 8.3 million after charges for the forthcoming closure of its California factory and high…
Tableware firm Libbey Inc. increased sales in 2004 to nearly USD 545 million, but profits fell to less than USD 8.3 million after charges for the forthcoming closure of its California factory and higher costs. Libbey reported 3 February 2005 that its sales for 2004 increased 6% from USD 513.6 million in 2003, although profits declined nearly 72% from USD 29.1 million. Profits per share were USD 0.60 in 2004, less than a third of the USD 2.11 in 2003. Libbey is due to close its City of Industry, California plant in February 2005, for which it took charges of USD 14.5 million in 2004. Without the charge, Libbey would have had profits of USD 1.34 a share in 2004 and USD 0.29 a share in the 4Q, when sales increased 7% to USD 154.1 million but profits fell 79% to USD 1.5 million, or USD 0.11 a share. Libbey“s results were short of the consensus expectation of analysts polled by Thomson Financial Network by USD 0.02 a share for the 4Q and USD 0.03 a share for the year. In 2005, Libbey expects sales to be USD 605 million to USD 616 million, including the acquisition of Crisal-Cristalaria Automatica SA in Marinha Grande, Portugal, that was completed in January. Earnings before charges are expected to be USD 1.79 to USD 1.89 a share in 2005, the company said. “We will face continued challenges, but we have aggressive internal plans to control cost and, in fact, attack them more vigorously than ever while engaging, defending, and growing our core businesses both here in the US and overseas,” John Meier, Libbey“s chairman and chief executive, said 3 February 2005 during a conference call with analysts. Profit for 2004 was also affected by higher expenses for distribution, packaging, medical benefits, pensions, and natural gas, the company said. The firm also reduced its debt by USD 26 million in the 4Q 2004. As part of its foreign strategy, Libbey plans to build a factory in China and have it in full production within two years. Libbey has secured the land and business license for the factory, and expects to break ground in late spring, Mr. Meier said.