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[May 2007]
Ferro First Quarter Results
Ferro Corporation (Cleveland, OH, USA) has announced that sales for the first quarter of 2007 were US$530 million, up 5% from the US$505 million recorded in the first quarter of 2006.
Income from continuing operations for Q1 2007 was US$6.2 million compared with US$8.4 million in Q1 2006. Income from continuing operations declined primarily as a result of higher interest expense and restructuring charges. The 2007 first quarter income from continuing operations included net pre-tax expenses of US$4.3 million primarily related to previously announced manufacturing rationalisation activities. In the first quarter of 2006, income before taxes was reduced by expenses of US$4.8 million from activities primarily related to the accounting restatement that was concluded last year.
"Sales increased slightly and we maintained segment income levels during the first quarter of 2007, despite soft demand in several end-use markets," said Chairman, President and CEO James Kirsch. "The strength of our worldwide business and the breadth of our products have supported the business despite weaker demand from certain U.S. markets. We are working hard to complement these strengths with improvements in our cost structure as we execute our restructuring programs, reduce our debt levels and focus on achieving operational excellence."
Sales in the Performance Coatings segment increased in both the tile and porcelain enamel product areas, compared with the prior-year quarter. Both the Performance Coatings and Color and Glass Performance Materials segments experienced strong growth in international sales, particularly in Europe. Sales in Electronic Materials also grew in the quarter, primarily driven by higher demand for conductive pastes used in solar cells, partially offset by weaker dielectric materials demand from supply chain inventory reductions by customers who manufacture capacitors. Sales in Specialty Plastics declined and sales in Polymer Additives were nearly flat compared with the first quarter of 2006, largely due to weaker demand in the US housing and automotive markets.
Total segment income for the first quarter of 2007 was US$41.8 million, compared with the prior-year level of US$42.1 million. The difference reflected higher segment income from the Color and Glass Performance Materials and Performance Coatings segments, offset by reduced segment income from Specialty Plastics and Polymer Additives, which experienced weaker demand from customers in the US housing and automotive markets. Segment income was also lower in the Electronic Materials segment, primarily due to a combination of higher raw material costs, increased manufacturing costs and higher SG&A spending compared with the first quarter of 2006.
www.ferro.com
ENDS