Libbey Inc. Announces First Quarter Diluted EPS of $.27; Expects Growth in The Second Half of This Year

Apr 24, 2001, 01:00 ET from Libbey Inc.

    TOLEDO, Ohio, April 24 /PRNewswire Interactive News Release/ -- Citing the
 lingering effects of significantly higher energy costs and a sales shortfall
 to industrial customers Libbey Inc. (NYSE:   LBY) announced that its diluted
 earnings per share for the first quarter were 27 cents.  On March 20, 2001,
 the company announced its expectation that diluted earnings per share for the
 quarter would be between 24 and 28 cents.
 
     First-Quarter Results
     For the quarter ended March 31, 2001, sales were $92.5 million compared to
 $96.8 million in the year-ago quarter.  Growth in glassware and flatware sales
 to foodservice customers was more than offset by lower sales to industrial and
 retail customers. The company was also notified in March of the cancellation
 of a long-standing multi-million dollar promotional order. While not impacting
 first quarter sales, this order from a key premium promotional client had been
 scheduled to be produced at various times during the first three quarters of
 2001 and shipped during the fourth quarter.
     The company recorded income from operations of  $8.9 million during the
 quarter.  This compares with income from operations of $12.9 million in the
 year-ago period.  Lower selling, general and administrative expenses only
 partially offset the impact of the higher energy costs and lower sales.
     Earnings before interest and income taxes (EBIT) was $9.9 million compared
 to $14.5 million in the year-ago quarter.  Equity earnings were $1.3 million
 on a pretax basis, down from $1.9 million pretax in the first quarter of 2000.
 For the quarter-ended March 31, 2001, the company recorded net income of
 $4.2 million, or 27 cents diluted earnings per share compared with a net
 income of $6.4 million, or 41 cents diluted earnings per share, in the
 year-ago period.
 
     Working Capital Management Remains a Focus
     Inventories increased $7.8 million during the quarter as compared to an
 increase of  $9.7 million during the first quarter of 2000.  As previously
 announced, the company is taking steps to curtail production and reduce
 inventories.  While impacting the company's profitability in the short term,
 these steps will improve working capital management and cash flow and allow
 the company to operate at higher levels of capacity as sales trends improve.
 
     Outlook for 2001
     Discussing the company's results and outlook, John F. Meier, chairman and
 chief executive officer, said,  "The soft economy has impacted our industrial
 and retail markets, but our core foodservice sales continue to be strong.  We
 are also taking the right steps to balance our production, control inventories
 and market our new products to stimulate profitable new sales.  While we
 continue to see a weaker economic environment in the short-term, we remain
 focused on delivering profit growth, with expectations for growth in the
 second half of the year.  We expect earnings for the second quarter of 2001 to
 be roughly equal to the second quarter of 2000.  For the full year, goals for
 the company continue to be sales in the range of $450 to $460 million,
 compared to actual sales of $441.8 million in 2000, and diluted earnings per
 share of $3.10 to $3.20 compared to $3.01 in 2000."
 
     The above information includes "forward-looking" statements as defined in
 the Private Securities Litigation Reform Act of 1995. Such statements only
 reflect the company's best assessment at this time, and are indicated by words
 or phrases such as "goal," "expects, " believes," "will," "estimates,"
 "anticipates," or similar phrases.
 
     Investors are cautioned that forward-looking statements involve risks and
 uncertainty, that actual results may differ materially from such statements,
 and that investors should not place undue reliance on such statements.
 
     Important factors potentially affecting performance include devaluations
 and other major currency fluctuations relative to the U.S. dollar that could
 reduce the cost-competitiveness of the company's products compared to foreign
 competition; the effect of high inflation in Mexico and exchange rate changes
 to the value of the Mexican peso and the earnings and cash flow of the
 company's joint venture in Mexico, Vitrocrisa, expressed under U.S. GAAP; the
 inability to achieve savings and profit improvements at targeted levels in the
 company's glassware sales from its production realignment efforts and re-
 engineering programs, or within the intended time periods; inability to
 achieve targeted manufacturing efficiencies at Syracuse China and cost
 synergies between World Tableware and the company's other operations;
 significant increases in interest rates that increase the company's borrowing
 costs and per-unit increases in the costs for natural gas, electricity,
 corrugated packaging, and other purchased materials; protracted work stoppages
 related to collective bargaining agreements; increased competition from
 foreign suppliers endeavoring to sell glass tableware in the United States:
 major slowdowns in the retail, travel or entertainment industries in the
 United States, Canada and Mexico; whether the company completes any
 significant acquisition, and whether such acquisitions can operate profitably.
 
     Libbey Inc.:
     -- is the largest producer of glass tableware in North America;
     -- is a leading producer of tabletop products for the foodservice
        industry;
     -- exports to more than 80 countries; and,
     -- provides technical assistance to glass tableware manufacturers around
        the world.
 
     Based in Toledo, Ohio, the company operates glass tableware manufacturing
 plants in California, Louisiana, and Ohio.  In addition, Libbey is a joint
 venture partner in the largest glass tableware company in Mexico.  Through its
 Syracuse China subsidiary, the company designs, manufactures and distributes
 an extensive line of high-quality ceramic dinnerware, principally for
 foodservice establishments in the United States.  Through its World Tableware
 subsidiary, the company imports and sells a full-line of metal flatware and
 holloware and an assortment of ceramic dinnerware and other tabletop items,
 principally for foodservice establishments in the United States.  In 2000, its
 net sales totaled $441.8 million.
 
                                    LIBBEY INC.
                    CONDENSED CONSOLIDATED STATEMENTS OF INCOME
                   (Amounts in thousands, except per-share data)
 
                                              THREE MONTHS ENDED
                                                                       Percent
                                             March 31,   March 31,     Change
                                                 2001        2000
     Net sales                                 $92,515     $96,761      -4.4%
     Freight billed to customers                   446         457
     Royalties and net technical assistance        473         633
         Total revenues                         93,434      97,851      -4.5%
 
     Cost of sales                              70,289      69,604       1.0%
     Selling, general and administrative
      expenses                                  14,204      15,369      -7.6%
         Income from operations                  8,941      12,878     -30.6%
     Equity earnings - pretax                    1,300       1,875
     Other expense--net                           (336)       (293)
 
         Earnings before interest and
          income taxes                           9,905      14,460     -31.5%
 
     Interest expense--net                      (2,527)     (3,035)
 
         Income before income taxes              7,378      11,425     -35.4%
 
     Provision for income taxes                  3,171       5,024
 
         Net income                             $4,207      $6,401     -34.3%
 
     Net income per share:
         Basic                                   $0.28       $0.42
         Diluted                                 $0.27       $0.41
 
     Weighted average shares:
         Outstanding                            15,246      15,242
         Diluted                                15,537      15,524
 
 
                                   LIBBEY INC.
                      CONDENSED CONSOLIDATED BALANCE SHEETS
                              (Dollars in thousands)
 
                                            March 31, December 31,  March 31,
                                                2001        2000        2000
     ASSETS
 
     Cash                                     $2,231      $1,282      $2,901
     Accounts receivable                      50,836      51,739      53,154
     Inventories                             112,283     104,506      99,579
     Other current assets                      9,693       7,923       8,269
         Total current assets                175,043     165,450     163,903
 
     Investments                              80,316      84,727      83,469
 
     Other assets                             41,778      43,620      36,846
 
     Goodwill                                 44,424      44,805      45,948
 
     Net property, plant and equipment       116,097     108,105     102,784
 
     Total assets                           $457,658    $446,707    $432,950
 
 
     LIABILITIES AND SHAREHOLDERS' EQUITY
 
 
     Notes payable                            $3,350     $10,000      $3,151
     Accounts payable                         24,188      29,861      23,575
     Accrued liabilities                      29,439      23,884      31,085
     Other current liabilities                 7,683      16,528      11,027
     Long-term debt due within one year       23,596        --        20,000
         Total current liabilities            88,256      80,273      88,838
 
     Long-term debt                          151,404     151,404     170,000
 
     Deferred taxes and other liabilities     32,722      32,083      26,881
 
     Nonpension retirement benefits           49,321      49,676      51,845
 
     Total shareholders' equity              135,955     133,271      95,386
 
     Total liabilities and shareholders'
      equity                                $457,658    $446,707    $432,950
 
 
                                    LIBBEY INC.
                   CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOW
                               (Dollars in thousands)
 
                                                    THREE MONTHS ENDED
 
                                              March 31, 2001    March 31, 2000
 
     Operating activities
         Net income                                   $4,207            $6,401
         Adjustments to reconcile net
          income to net cash provided by (used in)
          operating activities:
               Depreciation                            4,600             3,836
               Amortization                              969             1,056
               Other non-cash charges                   (293)              389
               Equity earnings                          (444)             (571)
               Net change in components of
                working capital and other assets     (16,830)          (21,712)
                  Net cash provided by
                   (used in) operating
                   activities                         (7,791)          (10,601)
 
     Investing activities
         Additions to property, plant and
          equipment                                  (12,825)           (1,943)
         Dividends received from equity
          investments                                  4,918               --
         Other                                           (63)              (63)
            Net cash used in investing
             activities                               (7,970)           (2,006)
 
     Financing activities
         Net bank credit facility activity            23,596            20,000
         Other net borrowings                         (6,650)           (5,504)
         Stock options exercised                       1,021               318
         Treasury shares purchased                      (113)           (2,076)
         Dividends                                    (1,144)           (1,142)
            Net cash used in financing
             activities                               16,710            11,596
 
     Effect of exchange rate fluctuations
      on cash                                                               (6)
 
     Decrease in cash                                    949            (1,017)
 
     Cash at beginning of year                         1,282             3,918
 
     Cash at end of period                            $2,231            $2,901
 
 
                                    LIBBEY INC.
                 CONDENSED CONSOLIDATED JOINT VENTURE INFORMATION
 
 
                           Income Statement Information
 
     Three months ended March 31,                      2001              2000
     Net sales                                      $44,272           $45,627
       Cost of sales                                 32,954            32,653
     Gross profit                                    11,318            12,974
        Operating expenses                            5,178             5,258
     Income from operations                           6,140             7,716
       Other income (loss)                              433               371
     Earnings before finance costs and
      taxes                                           6,573             8,087
       Interest expense                               2,216             2,690
       Translation gain (loss)                         (488)             (705)
     Earnings before income taxes and
      profit sharing                                  3,869             4,692
       Income taxes and profit sharing                1,747             2,661
     Net income                                      $2,122            $2,031
 
     The above are summarized combined financial information for equity
     investments, which includes the 49% ownership in Vitrocrisa, which
     manufactures, markets and sells glass tableware (e.g. beverageware,
     plates, bowls, serveware and accessories) and industrial glassware (e.g.
     coffee pots, blender jars, meter covers, glass covers for cooking ware and
     lighting fixtures sold to original equipment manufacturers) and the 49%
     ownership in Crisa Industrial, L.L.C., which distributes industrial
     glassware in the U.S. and Canada for Vitrocrisa, for 2001 and 2000.
 
                     MAKE YOUR OPINION COUNT -  Click Here
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SOURCE Libbey Inc.
    TOLEDO, Ohio, April 24 /PRNewswire Interactive News Release/ -- Citing the
 lingering effects of significantly higher energy costs and a sales shortfall
 to industrial customers Libbey Inc. (NYSE:   LBY) announced that its diluted
 earnings per share for the first quarter were 27 cents.  On March 20, 2001,
 the company announced its expectation that diluted earnings per share for the
 quarter would be between 24 and 28 cents.
 
     First-Quarter Results
     For the quarter ended March 31, 2001, sales were $92.5 million compared to
 $96.8 million in the year-ago quarter.  Growth in glassware and flatware sales
 to foodservice customers was more than offset by lower sales to industrial and
 retail customers. The company was also notified in March of the cancellation
 of a long-standing multi-million dollar promotional order. While not impacting
 first quarter sales, this order from a key premium promotional client had been
 scheduled to be produced at various times during the first three quarters of
 2001 and shipped during the fourth quarter.
     The company recorded income from operations of  $8.9 million during the
 quarter.  This compares with income from operations of $12.9 million in the
 year-ago period.  Lower selling, general and administrative expenses only
 partially offset the impact of the higher energy costs and lower sales.
     Earnings before interest and income taxes (EBIT) was $9.9 million compared
 to $14.5 million in the year-ago quarter.  Equity earnings were $1.3 million
 on a pretax basis, down from $1.9 million pretax in the first quarter of 2000.
 For the quarter-ended March 31, 2001, the company recorded net income of
 $4.2 million, or 27 cents diluted earnings per share compared with a net
 income of $6.4 million, or 41 cents diluted earnings per share, in the
 year-ago period.
 
     Working Capital Management Remains a Focus
     Inventories increased $7.8 million during the quarter as compared to an
 increase of  $9.7 million during the first quarter of 2000.  As previously
 announced, the company is taking steps to curtail production and reduce
 inventories.  While impacting the company's profitability in the short term,
 these steps will improve working capital management and cash flow and allow
 the company to operate at higher levels of capacity as sales trends improve.
 
     Outlook for 2001
     Discussing the company's results and outlook, John F. Meier, chairman and
 chief executive officer, said,  "The soft economy has impacted our industrial
 and retail markets, but our core foodservice sales continue to be strong.  We
 are also taking the right steps to balance our production, control inventories
 and market our new products to stimulate profitable new sales.  While we
 continue to see a weaker economic environment in the short-term, we remain
 focused on delivering profit growth, with expectations for growth in the
 second half of the year.  We expect earnings for the second quarter of 2001 to
 be roughly equal to the second quarter of 2000.  For the full year, goals for
 the company continue to be sales in the range of $450 to $460 million,
 compared to actual sales of $441.8 million in 2000, and diluted earnings per
 share of $3.10 to $3.20 compared to $3.01 in 2000."
 
     The above information includes "forward-looking" statements as defined in
 the Private Securities Litigation Reform Act of 1995. Such statements only
 reflect the company's best assessment at this time, and are indicated by words
 or phrases such as "goal," "expects, " believes," "will," "estimates,"
 "anticipates," or similar phrases.
 
     Investors are cautioned that forward-looking statements involve risks and
 uncertainty, that actual results may differ materially from such statements,
 and that investors should not place undue reliance on such statements.
 
     Important factors potentially affecting performance include devaluations
 and other major currency fluctuations relative to the U.S. dollar that could
 reduce the cost-competitiveness of the company's products compared to foreign
 competition; the effect of high inflation in Mexico and exchange rate changes
 to the value of the Mexican peso and the earnings and cash flow of the
 company's joint venture in Mexico, Vitrocrisa, expressed under U.S. GAAP; the
 inability to achieve savings and profit improvements at targeted levels in the
 company's glassware sales from its production realignment efforts and re-
 engineering programs, or within the intended time periods; inability to
 achieve targeted manufacturing efficiencies at Syracuse China and cost
 synergies between World Tableware and the company's other operations;
 significant increases in interest rates that increase the company's borrowing
 costs and per-unit increases in the costs for natural gas, electricity,
 corrugated packaging, and other purchased materials; protracted work stoppages
 related to collective bargaining agreements; increased competition from
 foreign suppliers endeavoring to sell glass tableware in the United States:
 major slowdowns in the retail, travel or entertainment industries in the
 United States, Canada and Mexico; whether the company completes any
 significant acquisition, and whether such acquisitions can operate profitably.
 
     Libbey Inc.:
     -- is the largest producer of glass tableware in North America;
     -- is a leading producer of tabletop products for the foodservice
        industry;
     -- exports to more than 80 countries; and,
     -- provides technical assistance to glass tableware manufacturers around
        the world.
 
     Based in Toledo, Ohio, the company operates glass tableware manufacturing
 plants in California, Louisiana, and Ohio.  In addition, Libbey is a joint
 venture partner in the largest glass tableware company in Mexico.  Through its
 Syracuse China subsidiary, the company designs, manufactures and distributes
 an extensive line of high-quality ceramic dinnerware, principally for
 foodservice establishments in the United States.  Through its World Tableware
 subsidiary, the company imports and sells a full-line of metal flatware and
 holloware and an assortment of ceramic dinnerware and other tabletop items,
 principally for foodservice establishments in the United States.  In 2000, its
 net sales totaled $441.8 million.
 
                                    LIBBEY INC.
                    CONDENSED CONSOLIDATED STATEMENTS OF INCOME
                   (Amounts in thousands, except per-share data)
 
                                              THREE MONTHS ENDED
                                                                       Percent
                                             March 31,   March 31,     Change
                                                 2001        2000
     Net sales                                 $92,515     $96,761      -4.4%
     Freight billed to customers                   446         457
     Royalties and net technical assistance        473         633
         Total revenues                         93,434      97,851      -4.5%
 
     Cost of sales                              70,289      69,604       1.0%
     Selling, general and administrative
      expenses                                  14,204      15,369      -7.6%
         Income from operations                  8,941      12,878     -30.6%
     Equity earnings - pretax                    1,300       1,875
     Other expense--net                           (336)       (293)
 
         Earnings before interest and
          income taxes                           9,905      14,460     -31.5%
 
     Interest expense--net                      (2,527)     (3,035)
 
         Income before income taxes              7,378      11,425     -35.4%
 
     Provision for income taxes                  3,171       5,024
 
         Net income                             $4,207      $6,401     -34.3%
 
     Net income per share:
         Basic                                   $0.28       $0.42
         Diluted                                 $0.27       $0.41
 
     Weighted average shares:
         Outstanding                            15,246      15,242
         Diluted                                15,537      15,524
 
 
                                   LIBBEY INC.
                      CONDENSED CONSOLIDATED BALANCE SHEETS
                              (Dollars in thousands)
 
                                            March 31, December 31,  March 31,
                                                2001        2000        2000
     ASSETS
 
     Cash                                     $2,231      $1,282      $2,901
     Accounts receivable                      50,836      51,739      53,154
     Inventories                             112,283     104,506      99,579
     Other current assets                      9,693       7,923       8,269
         Total current assets                175,043     165,450     163,903
 
     Investments                              80,316      84,727      83,469
 
     Other assets                             41,778      43,620      36,846
 
     Goodwill                                 44,424      44,805      45,948
 
     Net property, plant and equipment       116,097     108,105     102,784
 
     Total assets                           $457,658    $446,707    $432,950
 
 
     LIABILITIES AND SHAREHOLDERS' EQUITY
 
 
     Notes payable                            $3,350     $10,000      $3,151
     Accounts payable                         24,188      29,861      23,575
     Accrued liabilities                      29,439      23,884      31,085
     Other current liabilities                 7,683      16,528      11,027
     Long-term debt due within one year       23,596        --        20,000
         Total current liabilities            88,256      80,273      88,838
 
     Long-term debt                          151,404     151,404     170,000
 
     Deferred taxes and other liabilities     32,722      32,083      26,881
 
     Nonpension retirement benefits           49,321      49,676      51,845
 
     Total shareholders' equity              135,955     133,271      95,386
 
     Total liabilities and shareholders'
      equity                                $457,658    $446,707    $432,950
 
 
                                    LIBBEY INC.
                   CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOW
                               (Dollars in thousands)
 
                                                    THREE MONTHS ENDED
 
                                              March 31, 2001    March 31, 2000
 
     Operating activities
         Net income                                   $4,207            $6,401
         Adjustments to reconcile net
          income to net cash provided by (used in)
          operating activities:
               Depreciation                            4,600             3,836
               Amortization                              969             1,056
               Other non-cash charges                   (293)              389
               Equity earnings                          (444)             (571)
               Net change in components of
                working capital and other assets     (16,830)          (21,712)
                  Net cash provided by
                   (used in) operating
                   activities                         (7,791)          (10,601)
 
     Investing activities
         Additions to property, plant and
          equipment                                  (12,825)           (1,943)
         Dividends received from equity
          investments                                  4,918               --
         Other                                           (63)              (63)
            Net cash used in investing
             activities                               (7,970)           (2,006)
 
     Financing activities
         Net bank credit facility activity            23,596            20,000
         Other net borrowings                         (6,650)           (5,504)
         Stock options exercised                       1,021               318
         Treasury shares purchased                      (113)           (2,076)
         Dividends                                    (1,144)           (1,142)
            Net cash used in financing
             activities                               16,710            11,596
 
     Effect of exchange rate fluctuations
      on cash                                                               (6)
 
     Decrease in cash                                    949            (1,017)
 
     Cash at beginning of year                         1,282             3,918
 
     Cash at end of period                            $2,231            $2,901
 
 
                                    LIBBEY INC.
                 CONDENSED CONSOLIDATED JOINT VENTURE INFORMATION
 
 
                           Income Statement Information
 
     Three months ended March 31,                      2001              2000
     Net sales                                      $44,272           $45,627
       Cost of sales                                 32,954            32,653
     Gross profit                                    11,318            12,974
        Operating expenses                            5,178             5,258
     Income from operations                           6,140             7,716
       Other income (loss)                              433               371
     Earnings before finance costs and
      taxes                                           6,573             8,087
       Interest expense                               2,216             2,690
       Translation gain (loss)                         (488)             (705)
     Earnings before income taxes and
      profit sharing                                  3,869             4,692
       Income taxes and profit sharing                1,747             2,661
     Net income                                      $2,122            $2,031
 
     The above are summarized combined financial information for equity
     investments, which includes the 49% ownership in Vitrocrisa, which
     manufactures, markets and sells glass tableware (e.g. beverageware,
     plates, bowls, serveware and accessories) and industrial glassware (e.g.
     coffee pots, blender jars, meter covers, glass covers for cooking ware and
     lighting fixtures sold to original equipment manufacturers) and the 49%
     ownership in Crisa Industrial, L.L.C., which distributes industrial
     glassware in the U.S. and Canada for Vitrocrisa, for 2001 and 2000.
 
                     MAKE YOUR OPINION COUNT -  Click Here
                http://tbutton.prnewswire.com/prn/11690X44771790
 
 SOURCE  Libbey Inc.