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[April 2008]
Ferro Announces Upward Revision in First Quarter 2008 Estimates
On 21 April, Ferro Corporation (Cleveland, OH, USA) announced that earnings per share for the 2008 first quarter were now expected to be in the range of 16 to 18 cents, including approximately 10 cents per share in special charges, or 26 to 28 cents excluding special charges. As reported by Thomson First Call, analysts expect first-quarter earnings of 20 cents per share, excluding special charges. Previously, the company had estimated that earnings for the quarter would be in the range of 12 to 17 cents per share, including 5 cents of special charges. The company now expects net sales for the first quarter to be approximately US$600 million, exceeding its previous estimates of sales between US$550 million and US$575 million.
The increased sales are due to better than expected sales volume, product pricing actions and favourable changes in foreign exchange rates. The improved earnings outlook is primarily the result of better than forecast results from the company's Inorganic Specialties Group and lower than anticipated selling, general and administrative expenses.
Ferro’s revised first-quarter earnings estimate includes pre-tax costs of approximately US$3.3 million related to a previously announced manufacturing interruption at its Bridgeport, New Jersey manufacturing location in December 2007. The manufacturing issues at the site have been corrected and are not expected to impact future financial results.
"It is encouraging to announce improved performance estimates in the midst of difficult macroeconomic conditions," said Ferro Chairman, President and CEO James Kirsch. "The people of Ferro have been working hard to restructure our business, reduce costs and manage the extraordinary volatility in raw material costs. We have built a strong foundation for sustainable improvement in the business, and it is beginning to translate into improved results for our shareholders. We will continue on the path we have established to complete our restructuring programs and improve our business operations across the entire company."
Ferro will provide details of the 2008 first-quarter results and second-quarter estimates during a conference call on 7 May 2008.
www.ferro.com
ENDS