ONEIDA, N.Y., May 28, 2003 (PRIMEZONE) -- Stockholders at Oneida Ltd.'s (NYSE:OCQ) 122nd Annual Meeting today approved the 2003 Non-Employee Directors Stock Option Plan; ratified the reappointment of PricewaterhouseCoopers LLP as independent auditors for the fiscal year ending January 31, 2004; and re-elected three members of the Board of Directors. In addition, Oneida Chairman and Chief Executive Officer Peter J. Kallet outlined the company's strategic actions aimed at overcoming exceptionally difficult conditions in 2002 and the first half of 2003.
During the meeting at the Oneida Community Mansion House, stockholders approved the reservation of 100,000 shares of common stock for issuance under the 2003 Non-Employee Directors Stock Option Plan, which encompasses members of the Board of Directors who are not employees of Oneida Ltd. Stockholders also elected the following members of the Board of Directors to new three-year terms: Mr. Kallet; Georgia S. Derrico, Chairman of the Board and Chief Executive Officer, Southern Financial Bancorp, Inc.; and Peter J. Marshall, Vice President and Chief Finance Officer, Dover Technologies International, Inc.
MARKETPLACE UNCERTAINTIES FOR 2003
Addressing shareholders, Mr. Kallet said the soft economic conditions that existed for much of 2002 appeared to be improving when Oneida concluded its fiscal year in January 2003. But he said conditions declined sharply during Oneida's first quarter that concluded in April 2003, noting "a continual slowing in the economy that has affected consumer spending, travel and leisure and business entertainment activity, coupled with the effects of the war (in Iraq), resulted in a difficult environment.." In addition, the outbreak of the SARS virus affected Oneida's international operations and will continue to do so for the foreseeable future, he said.
Due to the extent of these uncertainties, Mr. Kallet said, the company believes it is prudent to forego providing guidance on its sales and profits for the remainder of 2003. Oneida will again provide financial guidance "once the volatility subsides and economic stability resumes," he added.
RESPONDING WITH POSITIVE ACTIONS
Mr. Kallet detailed a series of actions the company is taking to offset the conditions. The conversion of Oneida's main flatware factory in Sherrill, N.Y. to a lean manufacturing system is "the most significant and dramatic change to our manufacturing facility in its 125-year history," he said. Once fully implemented by late 2004, he added, the system will "increase our productivity, reduce our costs and enhance our competitiveness" by substantially reducing lead times and inventory expenses.
Oneida's three divisions are responding to economic challenges with positive steps for improvement. "As the economy rebounds," Mr. Kallet said, each division is "well positioned to capitalize on increased sales, backed by sound business strategies to enhance our corporate growth":
-- The consumer products division introduced and placed in stores "more exciting new patterns and products in late 2002 and early 2003 than we have seen in the past three years," Mr. Kallet said. He explained that "many retailers are returning to trusted brands such as Oneida to restore consumer confidence in the housewares arena."
-- The foodservice division during 2002 gained significant market share in its accounts with hotels, chain restaurants, and independent dealers. Mr. Kallet said the division continues to "strengthen and realign their field sales force ... finalized new national contracts with hotel chains, with national chain restaurants and introduced an array of new products throughout the industry."
-- The international division increased market share and operating efficiencies in 2002 with gains in hotel placements, retail venues and ongoing internal improvements including significant inventory reductions. While SARS has deterred business and leisure travel in Asia and Canada, Mr. Kallet said, the division is optimistic that opportunities in other parts of the world can partially offset that impact.
EMPLOYEES' EFFORTS ARE APPRECIATED
Mr. Kallet noted that all of Oneida's employees have felt the impact of the recent economic challenges and the difficult decisions the company has had to make. Yet despite any hardships, he said, "our employees have been steadfast in their work ethic, professionalism, teamwork and devotion .... For that, we in management say thank you to all of our employees."
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: changes in national or international political conditions; terrorist attacks; general economic conditions in the Company's own markets and related markets; difficulties or delays in the development, production and marketing of new products; the impact of competitive products and pricing; certain assumptions related to consumer purchasing patterns; significant increases in interest rates or the level of the Company's indebtedness; foreign currency fluctuations; 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; impact of changes in accounting standards; potential legal proceedings; changes in pension and retiree medical costs; and the amount and rate of growth of the Company's selling, general and administrative expenses.