TOLEDO, Ohio, April 10, 2020 /PRNewswire/ -- Libbey Inc.
(NYSE American: LBY) ("Libbey" or "the Company"), one of the
world's largest glass tableware manufacturers, today announced
additional actions the Company is taking in response to the
COVID-19 pandemic.
In light of rapidly evolving market conditions, Libbey is
implementing a number of additional cost reduction measures. These
temporary actions include:
- Implementing a pay reduction for all salaried associates in the
U.S. and Canada through
September 30, 2020. This includes a
25% base salary reduction for CEO Michael
Bauer, 20% base salary reductions for executive officers and
other vice presidents, and 10% to 15% salary reductions for all
other impacted associates. The Board of Directors has also reduced
its cash compensation by 25%.
- Implementing temporary furloughs for a portion of U.S.
manufacturing and distribution salaried associates in line with the
curtailed operations in the U.S.
- Suspending the Company's 401(k) match for U.S. employees
participating in the 401(k) retirement savings plan through
September 30, 2020.
- Reducing manufacturing and distribution operations at its
Mexico facilities and requiring
all office staff to work remotely.
- Reducing planned 2020 capital expenditures and expenses,
including delaying ERP implementation milestones.
Libbey has also taken significant measures across its locations
in EMEA and China in line with
local government regulations and the resulting downtrend to demand
for its products. These changes are in addition to the previously
announced temporary shutdowns of the Company's U.S. manufacturing
facilities and retail stores and related furloughs, which have been
extended into May. The Company's U.S. distribution facilities are
supporting e-commerce and other customers and end users that have
been designated essential businesses.
"As we adapt to the impact of COVID-19, Libbey's management team
and Board of Directors are focused on business continuity and
ensuring we can continue to meet the needs of our customers,
employees and business partners," said Mike
Bauer, chief executive officer of Libbey. "We believe the
actions we are announcing today, in addition to the previously
announced changes to our U.S. operations, are necessary to help
ensure the strength of our business over the long-term. We will
continue to take actions to prioritize health and safety, comply
with applicable government orders and respond to changes in market
conditions."
Libbey will continue to monitor COVID-19 across its global
facilities and follow the guidelines established by public health
officials and government authorities, including the Centers for
Disease Control and Prevention (CDC). The Company will continue to
evaluate the operating environment and may make adjustments to the
actions outlined above as business conditions warrant.
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 2019, Libbey Inc.'s net
sales totaled $782.4 million.
Additional information is available at www.libbey.com.
Cautionary Note 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," "plan," "expects," "
believes," "will," "estimates," "anticipates," or similar phrases.
These forward-looking statements include all matters that are not
historical facts. They include statements regarding the Company's
intentions, beliefs or current expectations concerning, among other
things, the impact of COVID-19 on our operations and the length of
time of such impact, the duration of the reductions in salaries of
our executive officers, the impact of any cost-reduction measures,
our results of operations, financial condition, liquidity,
prospects, growth, strategies and the impact of COVID-19 on the
industry in which we operate and the industries we serve. By their
nature, forward-looking statements involve risks and uncertainties
because they related to events and depend on circumstances that may
or may not occur in the future. Investors are cautioned that
forward-looking statements are not guarantees of future performance
and that our actual results of operations, financial condition and
liquidity, and the development of the industry in which we operate,
may differ materially from these statements. Investors should not
place undue reliance on such statements. Important factors
potentially affecting performance include but are not limited to
risks and uncertainties related to the impact of COVID-19 on the
global economy, our associates, our customers and our operations,
our high level of indebtedness and the availability and cost of
credit; high interest rates that increase the Company's borrowing
costs or volatility in the financial markets that could constrain
liquidity and credit availability; the inability to achieve savings
and profit improvements at targeted levels in the Company's
operations or within the intended time periods; 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; 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 Chinese renminbi 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 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. These
and other risk factors that could cause results to differ
materially from the forward-looking statements can be found in the
Company's Annual Report on Form 10-K and in the Company's other
filings with the SEC. Refer to the Company's most recent SEC
filings for any updates concerning these and other risks and
uncertainties that may affect the Company's operations and
performance. 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.
