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[March 2007]
Ferro Reports Fourth-Quarter and Full-Year 2006 Results
Ferro Corporation (Cleveland, OH, USA) has announced that sales for the year ended 31 December 2006 were a record US$2.04 billion, up 8.5% from 2005. Sales for the fourth quarter were US$497 million, an increase of 8.6% from the fourth quarter of 2005.Income from continuing operations for 2006 was US$20.6 million compared with US$17.1 million in 2005. In 2006, operating income included net pre-tax expenses of US$34.9 million primarily related to previously announced manufacturing rationalisation activities and costs associated with an accounting investigation and restatement. In 2005, operating income was reduced by pre-tax expenses of US$14.1 million, primarily related to expenses from restructuring and the accounting investigation and restatement.
"We delivered substantial growth in sales, and a strong 29 percent increase in our total segment income in 2006," said Chairman, President and CEO James Kirsch. "We have initiated important restructuring programs that will provide significant future cost savings. And with a new senior team in place, we are committed to delivering sustained global growth and improved profitability in 2007 and beyond."
Sales growth in 2006 was a result of strong performances in Ferro's Electronic Materials, Performance Coatings and Color and Glass Performance Materials segments. Sales in the Polymer Additives and Specialty Plastics segments were negatively impacted by weakness in the U.S. residential construction and automotive markets in the second half of the year.
Increased prices, including higher precious metal prices, and improved product mix across all of the company's businesses, were the primary drivers of sales growth for 2006. Overall volume declined slightly as volume improvements in Electronic Materials and Performance Coatings were offset by declines in Specialty Plastics and Polymer Additives.
www.ferro.com
ENDS