Ferro revises earnings and expects charges
CLEVELAND — Reflecting challenges in solar cell markets, Ferro Corp., supplier of technology-based performance materials for manufacturers, has announced the following:
• Expected 2012 adjusted earnings per diluted share revised to $0.07 to $0.12, including a $0.14 to $0.17 loss per diluted share in the Company’s solar pastes business.
• Company exploring strategic options for solar pastes business as it continues operating expense reductions throughout all of its businesses.
• Impairment charges in a range of $175 million to $200 million expected to be recorded in 2012 third quarter related to write-downs of goodwill and other assets; as a consequence of the impairment charges, the Company expects to reserve for up to $135 million of its net deferred tax assets.
• Election to change the Company’s method of recognizing defined benefit pension and other postretirement benefit expense results in a $0.14 per share positive adjustment to full-year adjusted earnings guidance for 2012.
Headquartered in Mayfield Heights, Ohio, the Company has approximately 5,100 employees globally and reported 2011 sales of $2.2 billion.
The change in guidance, the company says, is primarily the result of deterioration in its forecast for its solar pastes and metal powders businesses, and further weakening of business conditions in Europe, partially offset by the pension expense adjustment.
“The market for conductive pastes used in the manufacture of solar cells has been particularly challenging for much of 2011 and 2012 as the solar industry struggles with overcapacity and rapidly falling prices for solar power panels…. the pace at which we have been able to achieve new product qualifications at the larger solar cell manufacturers has been insufficient to generate the sales volume needed to contribute adequate value to our shareholders,” Ferro Chairman, President and CEO James Kirsch, says.