ONEIDA, N.Y., Oct. 8, 2001 (PRIMEZONE) -- As a result of continued softness in product demand within U.S. markets, Oneida Ltd. (NYSE:OCQ) today announced it will reduce the work week from five days to four days in selected sections of its Sherrill, N.Y., flatware manufacturing facilities. In addition, the company announced the elimination of approximately 65 overhead and non-manufacturing positions at its local operations.
Oneida cited the impact of the September 11 terrorist attacks as a significant factor affecting its business levels. The company's Foodservice tableware unit has especially felt the impact of declines in the airline, restaurant and hotel industries resulting from sharply reduced travel, while the Consumer unit has been affected by reduced traffic at retail stores.
The four-day work week -- Monday through Thursday -- will take effect Friday, October 12, and will continue through Friday, November 23. At that time, the company will review its product order volume to determine if further actions are necessary.
The employment reductions will involve some direct labor positions within the company's logistics operations, as well as overhead staff positions within other supporting functions.
"Any reduction in work hours or employment is a difficult measure to take, and we certainly recognize the impact this has on affected employees," said Peter J. Kallet, Oneida Chairman and Chief Executive Officer. "Unfortunately, the tragic events of September 11, and their far-ranging impact on economic conditions throughout the country, have contributed heavily to very difficult business conditions for us. Our actions are necessary in order to operate the factory at levels that are equal to incoming order demand, as well as to maintain our overall efficiencies and competitiveness.
"We are hopeful that the reduced work week in our manufacturing sections will be temporary, and when market conditions recover, we will be in position to accommodate increased demand by resuming full schedules," Mr. Kallet added. "Our future work schedules and staffing levels depend upon our rate of product orders."
Oneida Ltd. is a leading manufacturer and marketer of flatware and dinnerware for both the consumer and foodservice industries worldwide. Oneida also is a leading marketer of a variety of crystal, glassware and metal serveware for those industries.
Statements contained in this press release that state that certain results are "expected" or "anticipated" to occur, or otherwise state the company's predictions for the future, are forward-looking statements. These particular forward-looking statements and all other statements that are not historical facts, are subject to a number of risks and uncertainties, and actual results may differ materially. Such factors include, but are not limited to: general economic conditions in the Company's markets; difficulties or delays in the development, production and marketing of new products; the impact of competitive products and pricing; unforeseen increases in the cost of raw materials or shortages of raw materials; significant increases in interest rates or the level of the Company's indebtedness; major slowdowns in the retail, travel or entertainment industries; the loss of several of the Company's major customers; underutilization of the Company's plants and factories; and the amount and rate of growth of the Company's selling, general and administrative expenses.