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

Castle Harlan buys landscape erosion control firm Tensar

July 30, 2014 3:46 pm ET

Private equity group Castle Harlan inc. has acquired Atlanta-based Tensar Corp., with plans for the geosynthetic products maker and its subsidiaries...    More

Image

Styrolution will open new production late 2014

July 30, 2014 12:54 pm ET

Germany-based styrenic materials group, Styrolution, has announced it is expanding its facility in Ludwigshafen, Germany.    More

Image

New polymer changes color in seconds

July 30, 2014 9:51 am ET

Researchers have created an unusual polymer that can change color and return to its original color in less than a second by changing its temperature.    More

New materials compete with metals

July 30, 2014 9:47 am ET

Piper Plastics Inc. has developed a family of reinforced thermoplastics with exceptional strength.    More

Unipex Group buys Ferguson Chemical Innovation

July 29, 2014 1:57 pm ET

Chemical distributor Unipex Group Inc. announced July 29 that it had purchased Ferguson Chemical Innovation, a Brampton, Ontario-based supplier of che...    More

Market Reports

Plastics Recyclers Data Report & Directory

This exclusive MS Excel database contains all the companies from Plastics News' ranking of top North American Recyclers and Brokers by reprocessed volume and also includes a directory with materials processes, services offered and company contact information. Data is based on primary research by PN editorial staff.

Learn more

2014 Injection Molding Industry Report

GROWTH, OPPORTUNITY IN SIGHT FOR INJECTION MOLDERS IN 2014

In the wake of the economic turbulence earlier in this decade, molders today find themselves in much better shape. Molders are gaining a competitive advantage by investing in people, equipment and seeking inroads into new markets on a global scale.

Growth in the injection molding industry is going to be driven by low financing costs and a continued move to reshore some business.

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

January 14, 2015 - January 14, 2015Plastics in Automotive

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

More Events