New Strategic Plan Is Designed to Reduce Costs, Maximize Advantaged Business Segments, Accelerate Growth and Improve Financial Structure
Libbey Inc. (NYSE MKT: LBY) 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 increasing Libbey’s efficiency, better leveraging its key lines of business, improving service to customers and maximizing market opportunities.
“We are taking the necessary steps to ensure Libbey thrives in today’s competitive market,” said Stephanie A. Streeter, Libbey’s Chief Executive Officer. “This new strategy will build on Libbey’s long legacy and many strengths, and improve the Company’s competitive position to realize new opportunities across our business.”
The strategic plan will focus on reducing costs in North America, including selling, general and administrative (SG&A) expenses; maximizing Libbey’s leadership in advantaged businesses, including U.S. Foodservice and Mexico Foodservice and Retail; increasing profitability and improving Libbey’s cash generation in Europe; accelerating growth in China; and making continued improvements to Libbey’s financial structure. In addition to the recent debt refinancing successfully completed in May 2012, Libbey will drive for a more competitive cost structure. As part of the new strategy, Libbey announced a new regionally focused leadership structure. The Company will be organized into three regions: the Americas, with Daniel Ibele serving as Vice President and General Manager for the United States and Canada and Salvador Minarro serving as Vice President and General Manager of Mexico and Latin America; Europe, Middle East and Africa (EMEA), where Libbey is currently conducting a search for the general manager of this region; and Asia Pacific, with Gary Moreau serving as Vice President and General Manager of Asia Pacific.
“Libbey is a global company; however, the needs of our customers and suppliers vary by market,” added Streeter. “By aligning regionally, Libbey will be in a stronger position to serve customers across the globe.” Redundancies created by the reorganization are expected to result in Libbey eliminating approximately 5% of its global managerial, professional and administrative workforce. “These are difficult business decisions, and we regret the impact they will have on the affected associates,” said Streeter. The Company is providing impacted associates with severance benefits and outplacement assistance. The strategic plan is slated to guide Libbey through 2015 and will be coordinated through a newly established Strategy Program Management Office, which will be led by former Libbey Chief Financial Officer Richard Reynolds. On July 16, 2012, Libbey announced the appointment of Sherry Buck to Chief Financial Officer.