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[February 2006]
Libbey Full Year Results
For the year ended 31 December 2005, sales for Libbey Inc increased 4.3% to US$568.1 million. The increase was attributable to the Crisal acquisition in Portugal and higher sales of World Tableware, Syracuse China and Traex products. Partially offsetting these increases were slightly lower glassware shipments to foodservice and retail customers and a nearly 15% decrease in shipments to industrial glassware customers primarily as a result of softness in the candle industry.
Loss from operations was US$8.9 million, compared with income from operations of US$23.9 million in the previous year. Causes of the reduction were primarily related to US$27.2 million in special charges, including the US$16.5 million in Syracuse China impairment and other charges, US$4.9 million of pension settlement accounting charges, US$4.7 million related to the salary reduction programme in June 2005 and US$1.1 million related to the capacity realignment charges in connection with the shutdown of Libbey's City of Industry, CA, USA facility in February 2005. In addition, lower glassware sales, an increase in workers' compensation expenses, inventory reduction programmes, higher pension and post-retirement medical expenses and higher natural gas costs all contributed to the loss from operations.
ENDS