Ferro Corporation (NYSE: FOE, the “Company”) today reported financial results for the fourth quarter and full year ended December 31, 2012. The Company also provided an outline of its strategic vision for value creation.
Full-Year 2012 Results – Summary
For the full-year of 2012 the Company reported a net loss attributable to common shareholders of $374 million, or $4.34 per diluted share. In comparison, for the full year of 2011, net income attributable to common shareholders was $4 million, or $0.05 per diluted share. On a pre-tax basis, the Company reported a loss of $264 million in 2012, versus income of $24 million in 2011. The results in both years include a number of charges, including, among other items, asset impairments, restructuring activities, and a pension and other postretirement benefits mark-to-market adjustment of the related net liabilities. See the supplemental tables attached for additional information concerning special items that impacted reported results.
Adjusted for charges, income before income taxes was $14 million for 2012, compared with $103 million for 2011. The decrease was primarily attributable to the significant decline in the Company’s Electronic Materials segment, which reported a loss of $16 million in 2012 versus income or $68 million in 2011, as well as continued weakness in the Eurozone.
Results for Electronic Materials fell with declines in demand for solar pastes, as the solar industry contracted considerably over the last 18 months and continues to be weak. During 2012, solar paste sales declined by nearly $230 million. The segment’s results were also adversely impacted by reduced demand for conductive metal powders and surface finishing products.
Sales in Europe for 2012, excluding Electronic Materials sales, totaled $587 million in 2012 compared with $651 million in 2011. Profitability in the region for 2012, excluding Electronic Materials, was $20 million, versus $37 million in 2011. The impact of changes in foreign currency rates accounted for approximately 7% of the sales decline. The recessionary conditions in the Eurozone during 2012 adversely impacted the Company’s business segments with significant operations in the region, including the Color and Glass Performance Materials, Performance Coatings and Polymer Additives segments.