Oneida Revises First Quarter 2001 Earnings Expectations; Cost Reductions to Have Positive Impact Through Remainder of 2001


ONEIDA, N.Y., April 30, 2001 (PRIMEZONE) -- Oneida Ltd. (NYSE:OCQ) announced today that it anticipates earnings for the first quarter ended April 28, 2001, will be approximately $ .02 to $ .04 per share on net revenues of approximately $ 126 million. The first quarter results will be lower than anticipated due to continued softness in product demand throughout the company's consumer markets, and overhead variances that resulted from a lowering of manufacturing levels.

"The revised earnings expectations reflect further softness in Oneida's consumer business, which is indicative of the U.S. retail industry in general," said Peter J Kallet, Oneida Chairman and Chief Executive Officer. "In response to the weakening in consumer demand, we decided to decrease production throughout our manufacturing facilities in February, lowering it again in April, to bring production levels in line with incoming orders. This has resulted in increased overhead variances and plant utilization inefficiencies.

"In conjunction with lowered production levels, since January we have reduced our worldwide manufacturing employment by 450 positions, or roughly $12 million in annual wages. We have also reduced our worldwide non-manufacturing employment by another $4 million in annual wages. To date, we have executed our previously announced plan to reduce our worldwide employment levels by 8-10%."

Outlook For 2001

"We are pleased to report that our foodservice and international businesses are performing well, as Oneida continues to increase market share in both units. Our diversified product and market orientation is a plus for us, especially during this time of economic volatility in the consumer industry," Mr. Kallet continued. "Based upon the larger revenue contributions from our foodservice and international businesses, and the savings generated from the cost reductions implemented thus far, we anticipate our profitability will improve during the remainder of 2001.

"We are making additional progress on other operational improvements initiated last year. Since January, we have further reduced our stock keeping units (SKUs) from 12,000 to approximately 8,000 - as compared to 30,000 at the beginning of 2000," Mr. Kallet said. "Inventories for the 2001 first quarter will be down from the end of 2000, and by the end of the second quarter we will have shipped the remainder of our obsolete inventory. The reductions in SKUs and in inventory will have a positive impact on Oneida's bottom line this year.

"The SKU and inventory reductions, as well as our worldwide employment reduction and adjustments in production levels, are all key elements in driving Oneida's ongoing focus on reducing debt," Mr. Kallet added. " The company is on pace to meet its goal of having a reduced debt level of $245 to $255 million by year end.

"In addition to reducing debt, all of the above measures will allow us to continue to improve cash flow and make ongoing progress with our inventory turns," Mr. Kallet commented. "We are well positioned to overcome the current consumer economic conditions and improve our financial performance in the second half of this year."

Conference Calls on April 30 and May 17

Oneida's management will host a conference call with analysts and investors today (Monday, April 30, 2001) at 10:00 a.m. EST to discuss the company's upcoming first quarter results and operating performance. The results will be released after the stock market closes on Wednesday, May 16, 2001. Management also will host a conference call with analysts and investors on Thursday, May 17, 2001 at 9 a.m. to review the first quarter performance in full detail.

Both conference calls will be broadcast live over the Internet at www.oneida.com.To access each webcast, participants should visit the Investor Relations section of the website at least fifteen minutes prior to the start of the conference call to download and install any necessary audio software. A replay of the webcast can be accessed one hour after each conference call; the April 30 replay will be available through May 2, 2001, and the May 17 replay will be available through May 20, 2001.

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; under-utilization of the Company's plants and factories; and the amount and rate of growth of the Company's selling, general and administrative expenses.



            

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