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[February 2003]
Ferro Reports Revenue and Earnings Growth
Ferro Corporation (Cleveland, OH, USA) announced on 6 February 2003 that revenue from continuing operations for the fourth quarter of 2002 increased by 4.6% to US$366.2 million. Revenue for the full year 2002 increased by 22.6% to US$1.53 billion, due largely to increased volume related to the September 2001 dmc2 acquisition.Net income from continuing operations for Q4 2002 was US$7.1 million, or US$0.16 per diluted share, compared with US$2.9 million, or US$0.06 per diluted share in Q4 of 2001. For the full year, net income from continuing operations was US$33.7 million, or US$0.81 per diluted share, compared with US$30 million, or US$0.79 per diluted share for the full year 2001.
Sales in the Coatings segment were US$240.3 million from continuing operations in Q4 of 2002, compared with Q4 2001 sales of US$229.8 million. Segment income increased to US$23.3 million from US$16.2 million in the year ago quarter.
Increased sales reflect favourable foreign currency exchange and higher volumes within the Color and Glass Performance Materials business, which benefited from increased automotive build rates and higher demand for container glass material, particularly in North America. Overall, demand slowed significantly late in the quarter as customers extended holiday shutdowns and depleted inventory levels.
Global demand for electronics was relatively flat. Asia Pacific sales continued to grow at double-digit rates but market conditions in Europe remained very soft. Earnings increased significantly due mainly to the higher volumes and an improved cost structure resulting from the dmc2 integration process.
Chairman and CEO Hector Ortino said: "The fourth quarter marked our third consecutive quarter of earnings growth from continuing operations compared with prior year periods. This was accomplished despite our key end markets - building and renovation, electronics, appliance and automotive - not sustaining the growth momentum established in the early and middle part of the year".
He added: "Given the economic conditions that prevailed throughout the year, we managed discretionary spending, reduced working capital and accelerated the dmc2 integration process. The focused efforts of our management team and employees enabled us to pay down the entire amount of debt taken on to finance the dmc2 acquisition in less than twelve months. Our efforts have also provided the opportunity to amend certain financial covenants within our five-year bank credit agreement. The amendment increases the latitude and financial flexibility to make strategic decisions as we further position the Company for growth".
ENDS