Ferro Corporation (NYSE: FOE, the “Company”) today announced net sales of $466 million for the three-month period ended March 31, 2012, compared with net sales of $573 million in the first quarter of 2011. The Company recorded net income attributable to common shareholders of $1.3 million, or $0.01 per diluted share, in the 2012 first quarter, compared with $22.7 million, or $0.26 per diluted share, in the prior-year quarter. The adjusted net income attributable to common shareholders, excluding special charges, was $3.9 million, or $0.04 per diluted share, compared with $25.1 million, or $0.29 per diluted share, in the first quarter of 2011.
“Ferro generated income and positive earnings in the 2012 first quarter and sales increased in all businesses except Electronic Materials compared with the first quarter of 2011. While we continued to experience weak demand for conductive pastes and powders in our Electronic Materials business, we recorded sequential sales and income improvement in our Performance Coatings, Color and Glass Performance Materials, Polymer Additives, and Specialty Plastics businesses, compared with the fourth quarter of 2011,” said Chairman, President and Chief Executive Officer James F. Kirsch. “We will continue to carefully manage costs, expenses and cash, given the existing uncertainties regarding the timing and strength of a recovery of solar paste demand in the Electronic Materials business.”
2012 First-Quarter Results
Net sales for the three months ended March 31, 2012, were $466 million, a decline of 19 percent from net sales of $573 million in the first quarter of 2011. Reduced sales of Electronic Materials products, including precious metal sales, were the driver of the decline in consolidated net sales. Excluding the Electronic Materials segment, sales increased by 6.5 percent. Reduced customer demand for conductive pastes used in solar cell applications and metal powders used in a variety of electronic products resulted in a $131 million decline in sales for the Electronic Materials segment, including an $88 million decline in sales of precious metals due to reduced volume and lower silver prices. Demand for conductive pastes remains weak. Sales increased in the Performance Coatings, Specialty Plastics, Polymer Additives, Color and Glass Performance Materials and Pharmaceuticals segments compared with the prior-year quarter.