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[May 2002]
Record Sales for Ferro
Ferro Corporation (Cleveland, OH, USA) announced record sales for the first quarter 2002 of US$426.8 million, compared with US$370.7 million in the first quarter of 2001. Increased volume related to the dmc2 acquisition which closed in September 2001, helping to offset lower demand levels as a result of the economic conditions in the USA and Europe.Net income for Q1 2002 was US$7.2 million compared with US$14 million in Q1 2001. Earnings in Q1 2002 reflected costs associated with the integration of the dmc2 businesses of approximately US$1.2 million. Overall, earnings continued to be impacted by lower operating rates due to reduced market demand.
Compared with Q4 2001, sales increased US$16.9 million - or approximately 4% - while operating income improved US$6.1 million, about 27%. The increase was due largely to improved market conditions in the USA and to successful efforts to lower costs through integration and consolidation.
Sales in the Coatings Segment were US$286.3 million, compared with US$216.2 million in Q1 2001. Segment operating income was US$24 million, up from US$21.9 million a year ago. Overall, the segment has started to experience stronger demand in the USA, driven by the automotive market, the building and renovation market and durable goods. Demand in the electronics market has improved, especially in the Far East, but remains well below prior-year levels. European market conditions remained soft but did improve slightly versus Q4 2001.
Chairman and CEO Hector Ortino said that Ferro had been able to pay down about one-third of the debt taken on to finance the dmc2 acquisition in just seven months since closing the deal.
ENDS