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

Prices trending up for some recycled resins

July 24, 2014 1:27 pm ET

Plastics News is correcting prices for recycled grades of several commodity resins on this week's resin pricing chart.    More

Meredian merging with Danimer Scientific

July 24, 2014 1:59 pm ET

Bioplastics maker Meredian Inc. is merging with its sister firm, Danimer Scientific LLC.    More

Image

US Bioplastics receives funding to bring Gatoresin to the market

July 24, 2014 1:44 pm ET

Materials maker U.S. Bioplastics is hoping its Gatoresin product will take a bite out of the bioplastics market, thanks to funding from a state...    More

Image

Injection molder, recycler Polyvulc USA puts itself up for sale

July 24, 2014 12:41 pm ET

Fred Farrell and Larry Lambiotte, founders of Polyvulc USA Inc. and its subsidiaries Polyvulc Tire Recycling Llc and Winnsboro Rubber Recycling LLC,...    More

Image

BASF posts growth in second quarter

July 24, 2014 11:08 am ET

German chemical giant, BASF SE, has announced a 1 percent growth in sales for the second quarter of 2014 compared to the same period in 20...    More

Market Reports

Injection Molders Market Report & Ranking 2014

This special package contains our 132-page 2014 Market Report on the Injection Molding segment and our exclusive 2014 RANKINGS database of 500+ Injection Molders for a discounted package price.

Learn more

Plastics Recycling Market Review & Outlook 2014

This special report from Plastics News examines the North American plastics recycling industry and provides insight into indicators that impact market viability, including Resin pricing trends for virgin and recycled market material and historical Resin production trends for post- consumer and industrial waste.

Learn more

Shale Gas Market - Analysis of North American Region

This report highlights the impact of shale-based natural gas on the North American plastics market and features an in-depth analysis of production trends in the United States during 2013 and a forecast for 2014 and beyond.

Learn more

Upcoming Plastics News Events

September 10, 2014 - September 12, 2014Plastics Caps & Closures 2014

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

More Events