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[March 2002]
Ferro Announces Record Q4 and Full Year Sales
Ferro Corp (Cleveland, OH, USA) has announced record sales for both the fourth quarter and the full year 2001. Increased volume from acquisitions helped offset declines in market demand due to the economic conditions in the USA and Europe. Sales for the year were US$1.5 billion, compared with US$1.45 billion in 2000, while sales in Q4 2001 were US$409.9 million compared with US$361.2 million in the same period in 2000.Net income for the year 2001 was US$39.2 million, compared with US$73.1 million in 2000. Net income for Q4 2001 was US$6 million compared with US$16.4 million a year earlier.
"Economic conditions worldwide, but especially in the United States, clearly affected our financial results in 2001," said Ferro's chairman and CEO Hector Ortino. "Despite challenging conditions, we took significant actions in the year to position Ferro for long-term, profitable growth. These include the dmc2 acquisition, our constant efforts to control costs, and our emphasis on generating free cash flow to aggressively reduce debt. The dmc2 acquisition, in particular, helps accelerate our strategic Leadership Agenda to reshape the Company portfolio, expand globally and take advantage of growth opportunities."
Q4 sales in the Coatings segment were US$278.1 million compared with US$214.4 million in Q4 2000. Operating income was US$18.2 million, down from US$22.9 million in Q4 2000. Sales were boosted by acquisitions, while operating income decreased largely due to lower production rates. Many customers extended holiday shutdowns in the quarter as market demand in electronics, household items, and building and renovation remained soft.
Coatings segment sales for the whole of 2001 were US$920.7 million compared with US$878.5 million in 2000. Growth from acquisitions offset lower demand resulting from soft economic conditions worldwide, particularly in North America and Europe. Operating income was US$71.1 million versus US$99.5 million for 2000.
"Although sluggish macroeconomic conditions will likely persist in the near term, we are seeing some positive signs in certain markets," said Ortino. "It is unclear whether these apparent signs of recovery are sustainable. The timing and rate of economic recovery is uncertain, so the Company will continue to take measures to reduce costs and aggressively manage our operations to maximize cash flow. This will further strengthen our ability to grow earnings when macroeconomic conditions improve."
ENDS