Net Sales Increase Over 6% for Ferro in 2016
In the 2016 fourth quarter, Ferro delivered improved performance in all three of its reporting segments.
Ferro Corp. recently reported results for the fourth quarter and full year ended December 31, 2016. Fourth quarter net sales grew 6.2% to $281.3 million from $265 million in the prior year’s fourth quarter. On a constant currency basis, fourth quarter net sales increased 11% compared to the prior year. Gross profit increased to $79.6 million from $76.4 million. Ferro reported a net loss from continuing operations in the fourth quarter of $20.6 million, compared with net income of $59 million for the same quarter in the prior year.
In the 2016 fourth quarter, Ferro delivered improved performance in all three of its reporting segments:
- Pigments, Powders and Oxides (PPO) delivered a 17.4% sales increase, to $59.0 million
- Performance Color & Glass (PCG) sales improved 9.4%, to $94.6 million
- Performance Coatings sales were relatively flat at $127.8 million
“Ferro delivered another strong quarter, capping a year that illustrates the success of our strategy to transform Ferro into a focused functional coatings and color solutions company that provides high-value products, technical solutions and services to our customers,” said Peter Thomas, chairman, president and CEO. “In the quarter, our global team delivered increased sales volumes and gross profit margins in all three business segments while maintaining a strong cost optimization focus. We met or exceeded our full-year 2016 targets for sales growth, gross margin, adjusted free cash flow from operations, adjusted EBITDA and adjusted EPS. Growth in sales and profitability was achieved organically and through acquisitions, with the team completing five acquisitions during the year.”
For the year ended December 31, 2016, net sales increased to $1.15 billion, a 6.5% improvement compared to $1.08 billion generated in 2015. On a constant currency basis, net sales increased 11.1%, and gross profit increased to $351.2 million from $301.7 million. Ferro reported 2016 income from continuing operations of $44.6 million, compared with $99.9 million in the prior year.
“We are pleased to see the momentum generated in the second half of 2016 carrying into 2017,” said Thomas. “Results in the early part of 2017 are encouraging, and we are expecting another year of solid growth with constant currency sales growth of 11-12%. We expect the base business to continue the growth momentum it generated in the latter part of 2016, adding to our growth through acquisitions. To capitalize on the recent organic growth momentum, we will be making additional investments in sales, technical service, and research and development programs.”
For more information, visit www.ferro.com.