Oneida Ltd., the US tableware manufacturer which spent most of last year executing a restrucuring programme, reported a significant fourth-quarter earnings increase. For the three months ended 29 Janu…
Oneida Ltd., the US tableware manufacturer which spent most of last year executing a restrucuring programme, reported a significant fourth-quarter earnings increase. For the three months ended 29 January 2000, net income rose to US$ 11.4 million from US$ 3.4 million in the year-ago quarter. The 1999 quarter includes a US$ 5 million restructuring charge. Sales for the quarter rose 4% to US$ 130.4 million. For the 12 months ended 29 January 2000, net income was US$ 5.5 million, compared with US$ 19.7 million in the year-ago period. Net income included charges of US$ 41.3 million and US$ 5.0 million for 2000 and 1999, respectively. Sales for the year were US$ 495.1 million, a 6% increase. As part of its restructuring programme, in 1999 Oneida closed a Canadian manufacturing facility; consolidated international operations; realigned senior management, including the separation of sales and marketing; reduced worldwide employment; and eliminated underperforming product lines. According to the company, the restructuring programme, when fully realized in 2000, will result in US$ 20 million in annual savings. In 1999, the company also began operating two distribution centres; one in Buffalo, New York, and one in China, for its food service products and completed construction of a consumer products distribution centre in Oneida that will begin operating in the first quarter of fiscal 2000. “We are extremely pleased with our financial results for fiscal 1999, which clearly reflect the benefits, cost savings and synergies achieved by the major restructuring initiated early in the year,” said Peter Kallet, president and CEO. “We expect to achieve additional improvement in operations in fiscal 2000 as well, to support our firm commitment to increasing shareholder value. All of our business units grew during the year, with particular strength emanating from our new glassware lines and food service dinnerware products. “We are continuing to develop our product offering and to reach new markets through internal product development, acquisitions, licensing agreements and strategic partnerships.”