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EXHIBIT 99
LIBBEY INC.
300 MADISON AVE.
P.O. BOX 10060
TOLEDO, OH 43699
(NYSE: LBY)
AT THE COMPANY: AT THE FINANCIAL RELATIONS BOARD:
KENNETH WILKES KENNETH BOERGER SUZY LYNDE
VP/CFO VP/TREASURER ANALYST INQUIRIES
(419) 325-2490 (419) 325-2279 (312) 640-6772
FOR IMMEDIATE RELEASE
THURSDAY, MAY 18, 2000
LIBBEY INC. REVIEWS 3-YEAR FINANCIAL TARGETS, STRATEGIES TO DRIVE
SOLID NET INCOME GROWTH
CITES CONTINUED BENEFITS OF CAPACITY REALIGNMENT, EXPANDED NEW PRODUCT
DEVELOPMENT EFFORTS
TOLEDO, OHIO, MAY 18, 2000--At a meeting in Monterrey, Mexico, with security
analysts and investors, John F. Meier, chairman and chief executive officer of
LIBBEY INC. (NYSE: LBY) reviewed the company's operational strategies and plans
to achieve sales and net income growth over the next three years. The company
announced 2002 targets for sales of $525 million and net income of $61 million,
and ability to achieve an income from operations profit margin of 19%. These
figures compare with 1999 results of $461 million in sales, $43.4 million in net
income and an income from operations profit margin of 17.2%. In addition, the
company is targeting additional sales of $200 million by 2002 associated with
new acquisitions.
Key to the plan are to:
- - Better allocate sales and production resources to key markets and customers
to improve sales mix, and exiting marginal sales activity;
- - Achieve operational efficiencies and lower costs through higher capital
spending in new technologies, with capital spending expected to exceed $20
million in 2000;
- - Improve global sourcing arrangements;
- - Introduce more new products in glassware, dinnerware and flatware, aided
through the addition of a leading outside design firm, also to improve
sales mix; and
- - Continue successful acquisition thrust, with a focus on foodservice supply
item providers and international glass tableware manufacturing.
Commenting on Libbey's targets, Meier said, "We experienced a record performance
in 1999 with solid growth with our core foodservice customers in all products,
reduced costs and improved balancing of production resources and successful new
product introductions. The formula for the next three years is to concentrate on
continuing to improve our profitability.
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While achieving a 19% operating margin is a lofty goal, we have the plans in
place to continue to increase our profit margins."
Meier added, "While we expect sales growth to be modest in the short-term, our
direction is to go to market with more focus, utilizing our extensive sales and
marketing network while adding more value through interesting new products and
improved service. As an example, since early April, we have introduced 247 new
products to foodservice and retail customers, and we are encouraged by the early
response. We are meeting the market with success in new products out of our core
glassware operations, Syracuse China and World Tableware. Also, new production
equipment will be employed to improve our cost structure and flexibility to
serve key customers. These investments will approximate $20 million annually in
capital over the next few years. In addition, the growth in our activity is
expanding the use of our joint venture in Mexico, Vitrocrisa, which will produce
approximately 15% of our glassware needs in 2000."
Meier continued, "We have our work cut out for us, with a competitive market
place and rising commodity prices, including natural gas and packaging costs,
but our ability to improve manufacturing efficiencies and sourcing arrangements
will help offset rising costs. Additionally, our Libbey associates are better
focused on our mission at hand--to achieve a track record of solid and
sustainable growth in profits and cash flow. For the year 2000, our goals remain
to reach $475 million in sales, $84 million in income from operations and $48
million in net income."
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, 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 or Canada; and whether the
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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 foodservice users;
- - exports to more than 100 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 1999, its net sales totaled
$460.6 million.
FOR FURTHER INFORMATION REGARDING LIBBEY INC., FREE OF CHARGE VIA FAX,
DIAL 1-800-PRO-INFO AND USE TICKER SYMBOLS "LBY."
OR, VISIT LIBBEY INC.'S WEBSITE AT www.libbey.com
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