TOLEDO, Ohio (AP) _ Libbey Inc. will close a factory in Canada, eliminating 560 jobs, and will stop making glass bottles in an attempt to increase profits.

The plant in Wallaceburg, Ontario makes drinking glasses and also is the company's only producer of glass bottles.

The Toledo-based company, the largest maker of glass tableware in North America, will shift production of drinking glasses to other plants in the United States and Mexico, a company statement said.

Libbey spokesman Kenneth Wilkes said the glass bottle line, which included beer bottles and food jars, was only a small piece of the company's business.

``It was draining a lot of resources and didn't offer any long-term growth,'' Wilkes said.

Libbey officials expect to charge about $20 million, or 68 cents per share, against earnings after taxes as a result of the restructuring.

As a result of the charge and an additional $7 million in expenses related to the realignment plan, the company expects to have a net loss for the fourth quarter of approximately 47 to 52 cents per share.

John F. Meier, Libbey's chairman and chief executive officer, said he expects the restructuring to boost 1999 operating income by $4.5 million to $5 million, or 16 to 18 cents per share.

Libbey's net sales in 1997 totaled $412 million.

In midday trading on the New York Stock Exchange, Libbey was off 43 3/4 cents a share at $28.50.