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[November 2004]
Libbey Third Quarter Report
Libbey Inc, parent company of Syracuse China and World Tableware, increased sales by 2.1% for the third quarter, from US$129.1 million in the third quarter 2003 to US$131.8 million in the third quarter 2004. The increase in sales was partly attributable to growth in sales to customers in the retail and export channels of distribution and higher shipments to customers of Royal Leerdam products. Shipments to foodservice glass customers were off slightly while sales of Syracuse China dinnerware, World Tableware products and Traex products were all higher than in Q3 2003. Sales to retail customers increased over 9% compared with Q3 2003. Shipments in the last half of the quarter were adversely impacted in the South-eastern USA as a result of weather conditions.
The company recorded a loss from operations of US$400,000 during the quarter which included capacity realignment charges of US$11.7 million. This compares with income from operations of US$13.7 million in Q3 2003. Factors contributing to the decrease, in addition to the capacity realignment charge, were lower margin sales, high distribution costs, increased packaging costs, higher medical expenses, increased pension expenses and slightly higher natural gas costs. Partially offsetting these increases were improved capacity utilisation and efficiencies in the manufacturing operations.
ENDS