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Libbey Inc. reported results today for the fourth quarter of 2012 and the full year. In a press release the company stated: Fourth-Quarter Highlights
“We are pleased with this quarter’s results, driven in large part by the increased focus on improving margins and defending and growing our business in our key markets, the core of our recently announced strategic plan. Our cost improvements, coupled with solid sales growth in the U.S. and Canada sales region, led to exceptionally strong adjusted EBITDA. Four strong quarters propelled us to 2012 full year results that included all-time records in sales, income from operations and adjusted EBITDA,” said Stephanie A. Streeter, chief executive officer of Libbey Inc. “Our commitment to improving our cost structure, leveraging our advantaged businesses and strengthening our balance sheet was reflected in our results. We will continue efforts to improve our cost structure. We believe these efforts, in combination with our overall productivity improvements, will enable strengthened financial and operational performance in 2013.” Fourth-Quarter Regional Sales and Operational Review
Working Capital and Liquidity
Partial Redemption of Senior Notes Libbey Inc. announced that its wholly owned subsidiary Libbey Glass Inc. intends to call for redemption, during the second quarter of 2013, an aggregate principal amount of $45.0 million of its outstanding 6.875 percent Senior Secured Notes Due 2020 (the “Notes”), on a pro rata basis in accordance with the terms of the indenture agreement dated May 15, 2012 (the “Indenture”). Pursuant to the terms of the Indenture, the redemption price for the Notes will be 103.0 percent of the principal amount of the redeemed Notes, plus accrued and unpaid interest. Following completion of the redemption, the aggregate principal amount of the Notes that will remain outstanding will be $405.0 million. A formal notice of redemption will be sent separately to the holders of the Notes, in accordance with the terms of the Indenture. The Company plans to fund this redemption using cash on its balance sheet and, if needed, borrowings under its ABL credit agreement. Stephanie A. Streeter, Libbey’s chief executive officer, said, “We are pleased that, as a result of our outstanding free cash flow generation in 2012, we are in a position to reduce our outstanding senior note debt by $45 million. We continue to make significant progress in our ongoing efforts to reduce our leverage.” Tentative Realignment of North American Production As part of its ongoing efforts to improve Libbey’s cost structure and overall financial position, the Company today also announced a tentative plan to exit sales of certain glassware items, realign production in North America and reduce its manufacturing capacity at its Shreveport, LA, facility. The tentative plan will be further discussed with the United Steelworkers (USW), which represents Libbey production and maintenance employees in Shreveport. The realignment, if implemented as currently contemplated, would result in a reduction in Shreveport affecting approximately 200 positions. Some production would be relocated to Libbey’s facilities in Toledo, Ohio, and Monterrey, Mexico. Existing staff would handle the relocated production in Toledo and Monterrey. The vast majority of Libbey customers would not be impacted. “These changes would enable Libbey to reduce manufacturing capacity and improve asset utilization across our North American facilities, while continuing to meet the needs of our customers worldwide,” Streeter said. “We regret the impact these changes would have on our affected Shreveport associates, but they are necessary to strengthen Libbey’s financial and competitive position.” To learn more of Libbey and its extensive lineup of tabletop products for the foodservice industry, go here: http://foodservice.libbey.com/ Comments are closed.
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November 2021
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