After rejecting A. Schulman offer, Ferro reports $64 million fourth-quarter loss

CRAIN'S CLEVELAND BUSINESS

Published: March 5, 2013 3:13 pm ET
Updated: March 5, 2013 3:16 pm ET

Related to this story

Topics Materials, Mergers & Acquisitions, Materials Suppliers
Companies & Associations A. Schulman Inc., Ferro Corp.

MAYFIELD HEIGHTS, OHIO — Loss-plagued Ferro Corp., which is the object of an unsolicited takeover offer initiated this week by Fairlawn, Ohio-based A. Schulman Inc., has reported a wider fourth-quarter loss than in the fourth quarter of 2011.

The producer of specialty chemicals said the loss widened to $64 million, or 74 cents per diluted share, from a loss of $61 million, or 71 cents a share, in the fourth quarter of 2011.

Ferro said it recorded special charges of about $59 million in the fourth quarter of 2012, compared with about $67 million in the fourth quarter of 2011.

Sales at Ferro fell 8 percent, to $406 million from $443 million.

The company said its six operating segments reported lower sales in the latest fourth quarter compared to the prior year. Precious metal sales accounted for 29 percent of the sales decline, or $11 million. The largest sales decline, on a value-added basis (excluding the impact of precious metal sales), was in the Electronic Materials segment, where net sales declined 22 percent primarily due to reductions in demand for solar paste products and precious metal powders and flakes for other electronics uses.

Ferro announced Feb. 6 that it had sold the solar pastes business to Heraeus of Germany for an undisclosed price. The business had been a millstone around Ferro's neck the last two years because of a sharp decline in the production of solar cells, where the pastes are used.

Ferro said weakness in Europe, particularly in southern Europe, contributed to the decline in sales, principally in the Performance Coatings and Color and Glass Performance Materials segments.

Looking ahead, Ferro expects results to improve in 2013 due to initiatives that are expected to generate $25 million to $30 million of cost savings in 2013 and the company's exit from the solar pastes business. The expected improvements will be partly offset by inflation and what Ferro called "the normalization of incentive compensation."

"Based on current market conditions, including persistent weakness in European macroeconomic conditions, coupled with the expected timing associated with the cost savings programs, the company expects the first quarter of 2013 will be the lowest earnings quarter of the year, in the range of 2-5 cents per share," Ferro stated.


Comments

After rejecting A. Schulman offer, Ferro reports $64 million fourth-quarter loss

CRAIN'S CLEVELAND BUSINESS

Published: March 5, 2013 3:13 pm ET
Updated: March 5, 2013 3:16 pm ET

Post Your Comments


Back to story


More stories

Image

2014 leaves some resin firms in the black while others struggle

January 23, 2015 2:37 pm ET

On the financial side, 2014 was good for Hexcel Corp., so-so for Celanese Corp. and it could have been better for Omnova Solutions.    More

Image

Clariant's ColorForward predicts future consumer trends

January 23, 2015 1:33 pm ET

Clariant International Ltd. is marking a decade of color forecasting with the 10th edition of its ColorForward program.    More

Image

The future for PolyOne is colorful

January 23, 2015 1:28 pm ET

PolyOne Corp. is writing four color stories for 2016.    More

Image

Mexico's Polymer Solutions looks to grow, expand offerings with name change

January 23, 2015 12:03 pm ET

British biodegradable additives developer Symphony Environmental Technologies plc's Mexico distributor has changed its name from Plásticos...    More

Image

W&H buys bigger stake in BSW

January 23, 2015 10:43 am ET

Windmoeller & Hoelscher KG will get more involved in flexible packaging machinery through its bigger stake in machinery maker BSW Machinery Handels-Gm...    More

Market Reports

Plastics in Automotive: Innovation & Emerging Trends

This special report newly released by PN and sponsored by The Conair Group examines current trends in the use of plastics in automotive, materials innovations and the changing landscape. It includes a review of legislative/regulatory activity impacting vehicle development and lightweighting, market opportunities & challenges for mold and toolmakers, innovative design strategies being implemented by major OEMs and suppliers, as well as a review of key indicators in Canada, Mexico, Brazil and China.

Learn more

Plastics Recycling Trends in North America

This report is a review and analysis of the North American Plastics Recycling Industry, including key trends and statistics based on 2013 performance. We examine market environment factors, regulatory issues, industry challenges, key drivers and emerging trends in post-consumer and post-industrial recycling.

Learn more

Injection Molding Market Analysis & Processor Rankings

Plastics News BUNDLED package contains our in-depth Market Analysis of the Injection Molding segment. You will gain keen insight on current trends and our economic outlook.

As a BONUS this includes PN's updated 2014 database of North American Injection Molders RANKED by sales volume. Sort, merge, mail & prospect by end market, materials processed, region, # of plants and more.

Learn more

Upcoming Plastics News Events

February 4, 2015 - February 6, 2015Plastics News Executive Forum 2015

June 2, 2015 - June 3, 2015Plastics Financial Summit - Chicago 2015

September 16, 2015 - September 18, 2015Plastics Caps & Closures - September 2015

More Events