TOLEDO, Ohio, Aug. 27, 2019 /PRNewswire/ -- Libbey Inc.
(NYSE American: LBY), one of the world's largest glass
tableware manufacturers, today announced an organizational
realignment plan that is expected to reduce annual pre-tax run-rate
costs by approximately $9 -
$11M.
The plan focuses on transformational actions and structural
changes to lower the Company's cost base, improve its financial
performance and cash flow generation, and create a simplified
organization best positioned to deliver against its key financial
and operational priorities.
These priorities, which include leveraging digital marketing
capabilities to reach and influence distributors and end users,
driving growth in underpenetrated segments of foodservice,
continuing the business transformation enabled by ERP, and
optimization of our global supply chain, are intended to drive
operating performance improvement and growth over the next several
years.
The plan includes the following actions:
- Transition to a global, functionally aligned organization to
better leverage expertise and scale.
- Centralize manufacturing operations and supply chain management
to optimize and leverage capabilities and capacity across the
global network.
- Integrate key e-commerce functions into our core business,
resulting in a more efficient omni-channel commercial operating
structure as well as the creation of a new global marketing
organization to drive efficiencies and better leverage digital
marketing capabilities across our top foodservice distribution and
retail customers.
- Decrease the number of layers and broaden managers' spans of
control to simplify decision making and improve agility and
responsiveness.
- Leverage our extensive sales and channel expertise to drive
synergies and growth across Libbey's United States & Canada and Latin
America regions.
In connection with the organizational realignment plan, the
Board has approved the appointment of James
C. (Jim) Burmeister to the additional role of senior vice
president, chief operating officer, effective October 1, 2019. While the Company conducts a
search for a new chief financial officer, Mr. Burmeister will
continue in his current role as the Company's senior vice
president, chief financial officer. In his expanded role, Mr.
Burmeister will have primary responsibility for the Company's
manufacturing, engineering and supply chain operations, in addition
to his continuing responsibilities for the Company's accounting,
finance and information technology functions, and will provide
focused leadership to leverage and optimize our global supply
chain.
"Libbey is taking decisive actions to transform our business.
The actions we announced today are indicative of our strong
commitment to driving improved performance and delivering
consistent profitable growth," said Michael
P. Bauer, chief executive officer, Libbey Inc. "Over the
past several months, we have been refining our strategy and
developing action plans around our key business priorities. We are
taking significant steps to realign and right-size our organization
around our most profitable businesses and opportunities. The
actions we've taken are meaningful steps forward in our strategic
development, and we are confident that execution against these
plans will drive enhanced operational performance and deliver
consistent and profitable growth for the long-term."
About Libbey Inc.
Based in Toledo, Ohio, Libbey Inc. is one of the
largest glass tableware manufacturers in the world. Libbey Inc.
operates manufacturing plants in the U.S., Mexico, China, Portugal and the
Netherlands. In existence since 1818, the Company supplies
tabletop products to retail, foodservice and business-to-business
customers in over 100 countries. Libbey's global brand portfolio,
in addition to its namesake brand, includes Libbey
Signature®, Master's Reserve®,
Crisa®, Royal
Leerdam®, World® Tableware,
Syracuse® China, and Crisal Glass®. In 2018,
Libbey Inc.'s net sales totaled $797.9
million. Additional information is available at
www.libbey.com.
Caution on Forward-Looking Statements
This press
release includes forward-looking statements as defined in Section
27A of the Securities Act and Section 21E of the Securities
Exchange Act of 1934, as amended. Such statements reflect only 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 and that actual results may differ materially from
these statements. Investors should not place undue reliance on such
statements. These forward-looking statements may be affected by the
risks and uncertainties in the Company's business. This information
is qualified in its entirety by cautionary statements and risk
factor disclosures contained in the Company's Securities and
Exchange Commission filings, including the Company's report on Form
10-K filed with the Commission on February
27, 2019. Important factors potentially affecting
performance include but are not limited to risks related to
increased competition from foreign suppliers endeavoring to sell
glass tableware, ceramic dinnerware and metalware in our core
markets; global economic conditions and the related impact on
consumer spending levels; major slowdowns or changes in trends in
the retail, travel, restaurant and bar or entertainment industries,
and in the retail and foodservice channels of distribution
generally, that impact demand for our products; inability to meet
the demand for new products; material restructuring charges related
to involuntary employee terminations, facility sales or closures,
or other various restructuring activities; significant increases in
per-unit costs for natural gas, electricity, freight, corrugated
packaging, and other purchased materials; our ability to borrow
under our ABL credit agreement; high levels of indebtedness; high
interest rates that increase the Company's borrowing costs or
volatility in the financial markets that could constrain liquidity
and credit availability; protracted work stoppages related to
collective bargaining agreements; increased pension expense
associated with lower returns on pension investments and increased
pension obligations; increased tax expense resulting from changes
to tax laws, regulations and evolving interpretations thereof;
devaluations and other major currency fluctuations relative to the
U.S. dollar and the euro that could reduce the cost competitiveness
of the Company's products compared to foreign competition; the
effect of exchange rate changes to the value of the euro, the
Mexican peso, the RMB and the Canadian dollar and the earnings and
cash flows of our international operations, expressed under U.S.
GAAP; the effect of high levels of inflation in countries in which
we operate or sell our products; the inability to achieve savings
and profit improvements at targeted levels in the Company's
operations or within the intended time periods; the failure of our
investments in e-commerce, new technology and other capital
expenditures to yield expected returns; failure to prevent
unauthorized access, security breaches and cyber attacks to our
information technology systems; compliance with, or the failure to
comply with, legal requirements relating to health, safety and
environmental protection; our failure to protect our intellectual
property; and the inability to effectively integrate future
business we acquire or joint ventures into which we enter. Any
forward-looking statements speak only as of the date of this press
release, and the Company assumes no obligation to update or revise
any forward-looking statement to reflect events or circumstances
arising after the date of this press release.
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SOURCE Libbey Inc.
