US tableware producer Oneida Ltd. announced 2 May that it anticipates earnings for the first quarter ended 28 April 2001 will be approximately US$ .02 to US$ .04 per share on net revenues of approxima…
US tableware producer Oneida Ltd. announced 2 May that it anticipates earnings for the first quarter ended 28 April 2001 will be approximately US$ .02 to US$ .04 per share on net revenues of approximately US$ 126 million. The first quarter results will be lower than anticipated due to continued softness in product demand throughout the company“s consumer markets, and overhead variances that resulted from a lowering of manufacturing levels. “The revised earnings expectations reflect further softness in Oneida“s consumer business, which is indicative of the US retail industry in general,” said Peter J Kallet, Oneida chairman and chief executive officer. “In response to the weakening in consumer demand, we decided to decrease production throughout our manufacturing facilities in February, lowering it again in April, to bring production levels in line with incoming orders. This has resulted in increased overhead variances and plant utilization inefficiencies. “In conjunction with lowered production levels, since January we have reduced our worldwide manufacturing employment by 450 positions, equal to about US$ 12 million in annual wages. We have also reduced our worldwide non-manufacturing employment by another US$ 4 million in annual wages. To date, we have executed our previously announced plan to reduce our worldwide employment levels by 8-10%.” Oneida is a leading manufacturer and marketer of flatware and dinnerware for both the consumer and foodservice industries worldwide. Th company is also a leading marketer of a variety of crystal, glassware and metal serveware for those industries.