ONEIDA, N.Y., May 30, 2001 (PRIMEZONE) -- Oneida Ltd.'s 120th Annual Stockholders' Meeting today included election of a new member to the Board of Directors and re-election of three other members, as well as a review of accomplishments during 2000 that have positioned the company for further growth. The meeting was held at the Oneida Community Mansion House, with Chairman and Chief Executive Officer Peter J. Kallet presiding.
Stockholders elected Allan H. Conseur, Executive Vice President of Oneida Ltd., to a three-year term as a new member of the Board of Directors. Conseur, who was named Executive Vice President in 1999, joined Oneida in 1996 as President of THC Systems, Inc. (Rego China) when Oneida acquired that company. His election brings the Board's total membership to 10.
Stockholders also re-elected three members of the Board of Directors to three-year terms: William F. Allyn, President of Welch Allyn Ventures; Gregory M. Harden, President and Chief Executive Officer of Harden Furniture Co., Inc.; and Catherine H. Suttmeier, Corporate Vice President, Secretary and General Counsel of Oneida Ltd.
Achievements During the Past Year
At the meeting, Kallet told shareholders that while 2000 saw a downturn in Oneida's consumer market that affected sales and profits, the year also "had significant accomplishments during these trying times, both internal and external." He cited a number of achievements:
-- The mid-year acquisitions of Delco International Ltd., Sakura Inc., and Viners of Sheffield Limited (England) greatly broadened Oneida's product/brand portfolio and global presence. The acquisitions continued Oneida's growth strategy to become a total tabletop products supplier on a global basis.
-- Beginning last July, Oneida implemented ongoing initiatives to strengthen its balance sheet and overall financial condition by sustantially reducing debt, including an inventory reduction plan with new targets for turnover by product and division; a "make versus buy" review of all products; reduction in number of Stock Keeping Units (SKUs); and new sales policies to shorten the accounts receivables period.
"I am pleased to report that we are beginning to reap the rewards of our initiatives, with inventory reduction of $9 million as reported at the end of our first quarter and a reduction in SKUs from 30,000 at the beginning of the year 2000 to 8,000 now," Kallet told shareholders. He expressed confidence that the initiatives will enable Oneida to improve its financial flexibility going forward.
-- A revamped marketing strategy for Oneida's consumer division included new European-style flatware patterns; a new point-of-sale flatware display fixture; and a new "flatware for a lifetime" pattern availability offer. In conjunction, a new consumer survey showed Oneida's unaided brand recognition was 90%, a record high.
"We are cautiously optimistic about the third and fourth quarters for our consumer group, where our new fixtures and products are in place," Kallet remarked. "Response has been extraordinary, and sales are showing increases ... (at sites with new fixtures and products). These results reinforce our new marketing strategies."
-- Oneida's foodservice division increased market share during 2000 and, bolstered by the integration of Delco and additional products sourced through Sakura and Viners, is the foodservice industry's premier supplier across all segments and product categories.
-- The international division continued to expand rapidly, capitalizing on the addition of Viners and new products sourced through Delco. Through the 2001 first quarter, it is surpassing the company's sales expectations across all product categories.
Kallet noted that recent initiatives also included "extremely difficult actions" to reduce staffing at the company's manufacturing facilities, in January and March 2001, in order to balance production levels with a decline in product demand.
Positioned For The Future
In conclusion, Kallet said, Oneida's Annual Report theme, "Entering a New Era of Global Growth," reflects management's view of the future. With the help of the above initiatives, "we believe Oneida's position as the world's most complete tabletop resource will position us to capitalize on the success of the past and create new opportunities for the future to enhance shareholder value as we enter a new era of global growth."
Oneida Ltd. is a leading manufacturer of stainless steel and silverplated flatware for both the consumer and foodservice industries, and a leading supplier of dinnerware to those industries as well. Oneida also is a leading supplier of a variety of crystal, glassware and metal serveware for the tabletop market.
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