Ferro Corporation (NYSE: FOE) (the “Company”) today announced net sales of $443 million for the three-month period ended December 31, 2011 compared with net sales of $537 million in the fourth quarter of 2010. The Company recorded a net loss attributable to Ferro Corporation common shareholders of $28.8 million, or $0.33 per diluted share, in the 2011 fourth quarter, compared with net income attributable to Ferro Corporation common shareholders of $1.8 million, or $0.02 per diluted share, in the prior-year quarter. The adjusted net loss attributable to Ferro Corporation common shareholders, excluding special charges, was $6.8 million, or $0.08 per diluted share, compared with adjusted net income attributable to Ferro Corporation common shareholders of $20.4 million, or $0.24 per diluted share, in the fourth quarter of 2010.
“We began 2011 with high expectations following a strong performance in 2010 that was driven by worldwide economic growth and surging demand for solar power. During the year, the anticipated demand for conductive pastes used in solar cells did not materialize, resulting in significant booking reductions by our customers throughout the world, adversely affecting earnings. Our non-solar Electronic Materials businesses performed well in 2011, as did our Color and Glass Performance Materials and Pharmaceuticals businesses. However, improvements in these businesses did not offset the impact of the steep decline in solar paste revenues,” said Chairman, President and Chief Executive Officer James F. Kirsch.
“We responded quickly to the slowing customer demand through appropriate limits on spending, reduced hiring and adjustments in our manufacturing operations. Our focus on working capital resulted in $71 million of cash from operations in the fourth quarter as we continued to manage our business in line with market conditions,” Kirsch noted.
“Looking forward, we will continue making investments designed to fuel future sales growth, including new product development and enhanced customer technical support, as well as investments that will enhance our productivity and manufacturing efficiency.”