TOLEDO, Ohio–Glassmaker Libbey reported a net loss of $68.9 million for the fourth quarter ended Dec. 31, 2008, compared to a net loss of $5 million in the prior year quarter. Fourth quarter sales were $186.6 million, compared to $225.1 million in the fourth quarter of 2007.
Special charges of $45.3 million, associated with the planned closure of the company’s ceramic dinnerware manufacturing facility in Syracuse, N.Y., this April, and the closure of its distribution center in Mira Loma, Calif., in May, impacted results.
To improve cash flow, the company has reduced $10 million in capital spending, will lower cash contributions to pension plans, suspended its 401K match for salaried and non-union employees, and made salary reductions for American salaried employees and officers.
“As announced in December, we saw a dramatic slowdown in the foodservice and retail channels in the fourth quarter due to the impact of the global economic recession. “Declining consumer confidence and the weakness in the Mexican peso impacted us,” said John Meier, chairman and chief executive officer, in a statement. “However, we were pleased that our retail sales in the U.S. and Canada increased over four percent for the full year 2008, as we increased our market share in the U.S. from 34.0 percent in 2007 to 40.6 percent in 2008.”