In light of rapidly evolving market conditions, Libbey is implementing a number of additional cost reduction measures. These temporary actions include:
Implementing a pay reduction for all salaried associates in the
Implementing temporary furloughs for a portion of
Suspending the Company's 401(k) match for
Reducing manufacturing and distribution operations at its
Reducing planned 2020 capital expenditures and expenses, including delaying ERP implementation milestones.
Libbey has also taken significant measures across its locations in EMEA and
'As we adapt to the impact of COVID-19, Libbey's management team and Board of Directors are focused on business continuity and ensuring we can continue to meet the needs of our customers, employees and business partners,' said
Libbey will continue to monitor COVID-19 across its global facilities and follow the guidelines established by public health officials and government authorities, including the
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Cautionary Note 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,' 'plan,' 'expects,' ' believes,' 'will,' 'estimates,' 'anticipates,' or similar phrases. These forward-looking statements include all matters that are not historical facts. They include statements regarding the Company's intentions, beliefs or current expectations concerning, among other things, the impact of COVID-19 on our operations and the length of time of such impact, the duration of the reductions in salaries of our executive officers, the impact of any cost-reduction measures, our results of operations, financial condition, liquidity, prospects, growth, strategies and the impact of COVID-19 on the industry in which we operate and the industries we serve. By their nature, forward-looking statements involve risks and uncertainties because they related to events and depend on circumstances that may or may not occur in the future. Investors are cautioned that forward-looking statements are not guarantees of future performance and that our actual results of operations, financial condition and liquidity, and the development of the industry in which we operate, may differ materially from these statements. Investors should not place undue reliance on such statements. Important factors potentially affecting performance include but are not limited to risks and uncertainties related to the impact of COVID-19 on the global economy, our associates, our customers and our operations, our high level of indebtedness and the availability and cost of credit; high interest rates that increase the Company's borrowing costs or volatility in the financial markets that could constrain liquidity and credit availability; the inability to achieve savings and profit improvements at targeted levels in the Company's operations or within the intended time periods; 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, and in the retail and foodservice channels of distribution generally, that impact demand for our products; inability to meet the demand for new products; material restructuring charges related to involuntary employee terminations, facility sales or closures, 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; protracted work stoppages related to collective bargaining agreements; increased pension expense associated with lower returns on pension investments and increased pension obligations; increased tax expense resulting from changes to tax laws, regulations and evolving interpretations thereof; devaluations and other major currency fluctuations relative to the
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