TOLEDO, Ohio, May 21, 2018 /PRNewswire/ -- Libbey Inc.
(NYSE American: LBY) announced that its Board of Directors
has determined to suspend the Company's quarterly dividend in order
to increase focus on debt reduction and continued investment in
strategic initiatives.
"We are encouraged by the momentum that the company has
demonstrated in the past two quarters as we continue to make
progress on key initiatives to improve our performance, and we
remain committed to our 2018 guidance. The Board has been studying
this issue for some time and based on their analysis, and numerous
conversations with current and prospective investors, have taken
this action. We expect this will further strengthen our balance
sheet and enable us to continue to invest in strategic
initiatives," said William Foley,
Chairman and CEO of Libbey Inc.
In 2017, Libbey Inc. paid $10.4
million in cash dividends, while reducing net borrowings by
$23.5 million largely through use of
cash on hand. "We are modifying our capital allocation
strategy to assign greater priority to debt reduction and continued
investments in strategic initiatives that will improve our ability
to increase long term shareholder returns," added Jim Burmeister, CFO of Libbey Inc.
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®,
Masters Reserve®, Crisa®, Royal Leerdam®, World® Tableware,
Syracuse® China, and Crisal
Glass®. In 2017, Libbey Inc.'s net sales totaled $781.8 million. Additional information is
available at www.libbey.com.
Caution 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," "expects," "
believes," "will," "estimates," "anticipates," or similar phrases.
Investors are cautioned that forward-looking statements involve
risks and uncertainty and that actual results may differ materially
from these statements. Investors should not place undue reliance on
such statements. These forward-looking statements may be affected
by the risks and uncertainties in the Company's business. This
information is qualified in its entirety by cautionary statements
and risk factor disclosures contained in the Company's Securities
and Exchange Commission filings, including the Company's report on
Form 10-K filed with the Commission on March
1, 2018. Important factors potentially affecting performance
include but are not limited to risks related to 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 that
impact demand for our products; inability to meet the demand for
new products; material restructuring charges related to involuntary
employee terminations, facility abandonments, 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; high levels of indebtedness; high interest rates
that increase the Company's borrowing costs or volatility in the
financial markets that could constrain liquidity and credit
availability; protracted work stoppages related to collective
bargaining agreements; increases in expense associated with higher
medical costs, increased pension expense associated with lower
returns on pension investments and increased pension obligations;
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 RMB 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 inability to achieve savings
and profit improvements at targeted levels in the Company's
operations or within the intended time periods; 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. 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.