This Day On The Street
Continue to site
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Libbey Inc. Announces Cost Reduction Measures For U.S. Operations

TOLEDO, Ohio, Sept. 13, 2012 /PRNewswire/ --  Libbey Inc. (NYSE MKT: LBY), as part of its strategic plan to strengthen its core business, increase efficiency and generate growth, today announced modifications to the Company's retirement benefits for its U.S. salaried associates.  The Company also announced an additional reduction-in-force of its U.S. salaried staff, bringing the total planned reduction, including those announced in July 2012, to approximately nine percent of its global managerial, professional and administrative workforce.  The benefits and staffing changes announced this quarter are estimated to reduce annual expenses by more than $10 million annually (based on certain actuarial assumptions).

To address rising pension costs, Libbey will freeze company contributions to its cash balance pension plan for U.S. salaried associates as of January 1, 2013.  All pension plan participants will retain their accrued pension benefits.  The Company will offer salaried associates an improved 401(k) benefit that includes an increased Company match.   Effective December 31, 2012, Libbey also will end its existing healthcare benefit for salaried retirees age 65 and older and instead provide a Retiree Health Reimbursement Arrangement (RHRA) that supports retirees in purchasing a Medicare plan that meets their needs.

"These changes represent an important step in reducing U.S. costs and will further strengthen our balance sheet and financial position," said Stephanie Streeter, chief executive officer of Libbey Inc.  "We are committed to making our operations as efficient as possible, while still offering associates and retirees competitive benefits.  We have achieved both with these benefits changes."

In July, Libbey announced a new strategic plan designed to further strengthen its core business and enable the Company to improve profitability and realize growth opportunities.  The new strategy is specifically aimed at better leveraging Libbey's key lines of business, improving service to customers, maximizing market opportunities and increasing Libbey's efficiency.  As part of the July strategy announcement, Libbey outlined a new regionally focused leadership structure and reorganization that resulted in a five percent reduction of its global managerial, professional and administrative workforce.

1 of 3

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
SYM TRADE IT LAST %CHG

Markets

DOW 18,232.02 -53.72 -0.29%
S&P 500 2,126.06 -4.76 -0.22%
NASDAQ 5,089.3620 -1.4320 -0.03%

Partners Compare Online Brokers

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs