Ferro reports profits, recovers from losses

Ferro reports profits, recovers from losses

12:16 PM, 7th June 2011
Ferro reports profits, recovers from losses
James F Kirsch, Chairman, President and CEO, Ferro Corporation.

  • Net sales grow 16 per cent to $ 573 million
  • Net income improves to $ 23 million from a loss in the prior-year quarter
  • Earnings improve to $ 0.26 per diluted share compared with a loss of less than one cent per diluted share in the prior-year quarter

 

CLEVELAND, US: Ferro Corporation announced net sales of $ 573 million for the three-month period ended March 31, 2011, an increase of 16 per cent from net sales of $ 493 million in the first quarter of 2010. Net income improved to $ 23 million or $ 0.26 per diluted share, compared with a loss of $ 1 million, or less than one cent per diluted share, in the prior-year quarter.

 

“Ferro’s earnings momentum continued in the first quarter of 2011. Sales increased by 16 per cent during the quarter and were up 7 per cent excluding precious metals. Gross profit contribution on our incremental value-added sales was strong, reflecting improvement we’ve made in our manufacturing cost structure and product mix,” said James F Kirsch, Chairman, President and CEO, Ferro Corporation.

 

Sales for the company increased in all segments and regions compared with the prior-year quarter. Gross profit increased to $ 120 million or 21 per cent of sales, during the 2011 first quarter, compared with $ 107 million or 21.7 per cent of sales, during the first quarter of 2010. Excluding charges, gross profit as a percent of sales excluding precious metals was approximately 130 basis points higher in the 2011 first quarter than in the first quarter of 2010. The increase in gross profit dollars was primarily driven by changes in product pricing and mix and the benefits of cost reduction actions taken in prior periods.

 

Net income during the 2011 first quarter was $ 23.2 million or $ 0.26 per diluted share, compared with a loss of $ 0.8 million during the first quarter of 2010. Adjusted net income, excluding charges, was $ 26 million or $ 0.29 per diluted share during the first three months of 2011 compared with adjusted net income of $ 18 million or $ 0.22 per diluted share, in the 2010 first quarter.

 

Ferro expects net sales to grow between 9 and 12 per cent in 2011, to between $ 2.3 billion and $ 2.35 billion. The increased sales estimate is primarily the result of an expected increase in precious metal sales, driven by higher silver prices and a stronger sales outlook for the company’s colour and glass performance materials, polymer additives and specialty plastics businesses.

 

Demand for Ferro’s non-solar electronic materials products, including metal powders, metal pastes, and surface finishing materials, remains strong.  

 

Adjusted earnings per share for 2011, excluding special charges, are expected to be $ 1.28 to $ 1.35, unchanged from the company’s previous guidance.

(C) WOC News

 

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