29 July 1999: US-based Libbey Inc., the largest maker of glass tableware in the US, said second quarter results benefited from a realignment of its manufacturing capacity and an improved sales mix.
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29 July 1999: US-based Libbey Inc., the largest maker of glass tableware in the US, said second quarter results benefited from a realignment of its manufacturing capacity and an improved sales mix. The company said it earned US$ 13.6 million, or US$ 0.82 a share fully-diluted in the quarter, compared with US$ 13.7 million, or US$ 0.76, a year ago. Sales in the quarter were US$ 112.9 million against US$ 113.7 million the prior year. The average number of shares outstanding on which earnings per share are based dropped to 16.59 million from 18.06 million. Libbey said that year-to-date it had repurchased 597,800 shares for 415.5 million under a programme to repurchase up to 875,000 shares. Analysts polled by First Call had looked for the company to earn US$ 0.77 a share. John Meier, chairman and chief executive of Toledo, Ohio-based Libbey, said “We are pleased with the operating performance of the company.” He said improved asset utilization contributed to higher profit margins while sales of glassware to foodservice customers showed solid growth. Income from operations as a percentage of sales was 21.2% in the quarter compared with 19.4% a year ago. The company said the increased sales of glassware and dinnerware to foodservice customers offset lower sales of low-margin bottleware. Libbey noted that it had closed its Wallaceburg, Ontario plant in May where it made low-margin glass bottleware for industrial use. Sales of those products had totalled about US$ 8 million in 1998. Meier said the company still aims to achieve operating income of US$ 77 million and net income of US$ 44 million for the year, before restructuring charges, which would represent strong gains over last year.