MoreFerro Corp. has announced net sales of $529 million for the three months ended September 30, an increase of 20% from net sales of $442 million in the third quarter of 2009. In the recent third quarter, the company’s operating results included net pre-tax charges of $42.7 million. The charges included a loss on extinguishment of debt of $19.3 million; restructuring and impairment charges of $9.6 million; and other charges of $13.8 million primarily related to debt refinancing activities, manufacturing rationalization actions, and employee severance.
Including the charges, the loss from continuing operations for the 2010 third quarter was $2.4 million, or $0.04 per diluted share, compared with income from operations of $2.8 million, or $0.04 per diluted share, in the third quarter of 2009. In the third quarter of 2009, the operating results included net pre-tax charges of $14.1 million primarily related to impairment of goodwill, manufacturing rationalization and other cost reduction actions.
Segment income increased in Electronic Materials, Color and Glass Performance Materials, Polymer Additives, Specialty Plastics, and Pharmaceuticals compared with the prior-year period; sales income was lower in Performance Coatings. Income increased in Electronic Materials due to increased customer demand, especially metal powders and silver and aluminum pastes used by manufacturers of solar cells. Income in Color and Glass Performance Materials improved due to increased sales volume combined with lower manufacturing costs, partially offset by higher SG&A expense.
“Our excellent third quarter results, net of pre-tax charges, show the sustainable benefits we have created through our improved cost structure,” said James F. Kirsch, chairman, president and CEO. “We have delivered on our commitment to transform Ferro into a strong, efficient competitor that is ready to build on our leading product positions. We are consistently delivering sales growth, strong operating cash flow and improving margins while continuing to invest in the completion of our manufacturing rationalization initiatives.”
For additional details, visit www.ferro.com.
Including the charges, the loss from continuing operations for the 2010 third quarter was $2.4 million, or $0.04 per diluted share, compared with income from operations of $2.8 million, or $0.04 per diluted share, in the third quarter of 2009. In the third quarter of 2009, the operating results included net pre-tax charges of $14.1 million primarily related to impairment of goodwill, manufacturing rationalization and other cost reduction actions.
Segment income increased in Electronic Materials, Color and Glass Performance Materials, Polymer Additives, Specialty Plastics, and Pharmaceuticals compared with the prior-year period; sales income was lower in Performance Coatings. Income increased in Electronic Materials due to increased customer demand, especially metal powders and silver and aluminum pastes used by manufacturers of solar cells. Income in Color and Glass Performance Materials improved due to increased sales volume combined with lower manufacturing costs, partially offset by higher SG&A expense.
“Our excellent third quarter results, net of pre-tax charges, show the sustainable benefits we have created through our improved cost structure,” said James F. Kirsch, chairman, president and CEO. “We have delivered on our commitment to transform Ferro into a strong, efficient competitor that is ready to build on our leading product positions. We are consistently delivering sales growth, strong operating cash flow and improving margins while continuing to invest in the completion of our manufacturing rationalization initiatives.”
For additional details, visit www.ferro.com.
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