Ferro Sees Strong Growth in the Third Quarter of 2017
Ferro’s third quarter net sales were $350 million, an increase of 21.3% from $288.5 million in the 2016 third quarter.
Ferro Corp. recently reported results for the third quarter ended September 30, 2017. Third quarter net sales were $350 million, an increase of 21.3% from $288.5 million in the 2016 third quarter. On a constant currency basis, third quarter net sales increased 19.7% compared to the prior year quarter. Gross profit increased 16.4% to $103.6 million, from $89.0 million. Adjusted gross profit increased 18% to $105 million from $89 million, and the company achieved an adjusted gross margin of 30%, notwithstanding raw material headwinds.
Ferro reported net income attributable to Ferro Corp. common shareholders in the third quarter of $22.8 million, or $0.27 per diluted share, compared with a net loss of $8.9 million, or $0.11 per diluted share, in the 2016 third quarter. On an adjusted basis, earnings per diluted share from continuing operations were $0.33, an increase of 22.2% from $0.27 per diluted share in the third quarter of 2016. In the third quarter of 2017, organic net sales (which exclude acquisitions owned less than 12 months) increased 4.9% on a constant currency basis.
“Ferro delivered another quarter of strong financial results, with our fifth consecutive quarter of organic sales and volume growth,” said Peter Thomas, chairman, president and CEO. “Our delivery of strong results over several quarters demonstrates the durability and scalability of our value creation business model and the growth-oriented culture we have developed at Ferro. With a keen focus on innovation and optimization, we continue to improve performance and productivity. We have invested in higher- value growth opportunities that position the company for above-market gains, and we are expanding our role as an innovative technology partner to fulfill our customers’ current and future needs. Meanwhile, after 14 acquisitions over the past 33 months, we continue to improve operating leverage while growing revenue.
“Today, Ferro is a more focused and stronger company with consistently improving operating performance and operating cash flow. We are able to fund sustainable growth through innovative portfolio enhancements, new platforms that leverage our existing market positions, and strategic acquisitions. In this Dynamic Innovation and Optimization phase of our value creation strategy, we have moved to a self-renewing, higher growth model that is scaled to support reinvestment in core businesses and growth areas.”
All three of Ferro’s reporting segments delivered continued growth in the quarter:
- Color Solutions increased sales by 42.8% to $93.2 million, grew gross profit to $31.0 million, and generated a gross profit margin of 33.3%.
- Performance Colors & Glass increased sales by 19.2% to $110.6 million, grew gross profit to $37.9 million, and generated a gross profit margin of 34.3%.
- Performance Coatings increased sales by 12.1% to $146.2 million, grew gross profit to $35.5 million, and generated a gross profit margin of 24.3%.
Ferro also recently announced that it has completed the previously announced acquisition of Endeka Group, a global producer of high-value coatings and key raw materials for the ceramic tile market, for approximately €64 million (~ $74 million).
For more information, visit www.ferro.com.