Ferro Announces Next Step in European Restructuring
CLEVELAND - Nov. 2, 2007--Ferro Corporation (NYSE:FOE) announced today that it has initiated the next step in the restructuring of its European manufacturing operations. As a result of the new initiative, the Company will discontinue manufacturing porcelain enamel frit at its Rotterdam, The Netherlands, facility by the summer of 2008 and will consolidate production at other European sites. Employment at the Rotterdam location will be reduced by 84 positions. Ferro will work closely with customers to ensure a high level of customer support through the transition.
The Company expects to record a pre-tax charge in the third quarter ended September 30, 2007, of approximately $5.9 million for severance benefits related to the action, pursuant to an agreement reached with workers' representatives, and asset impairment and other costs. The charge is expected to reduce diluted earnings per share in the 2007 third quarter by approximately 10 cents. Previously, Ferro had estimated third quarter earnings would be 17 to 22 cents per share.
Ferro expects to record future severance costs, accelerated depreciation and other costs related to this manufacturing consolidation of approximately $17 million through the third quarter of 2008, in addition to the charges announced today.
The consolidation of frit manufacturing is part of Ferro's ongoing effort to reduce annual costs in its European manufacturing operations by $40 million to $50 million by the end of 2009.
About Ferro Corporation
Ferro Corporation is a leading global supplier of technology-based performance materials for manufacturers. Ferro materials enhance the performance of products in a variety of end markets, including electronics, solar energy, telecommunications, pharmaceuticals, building and renovation, appliances, automotive, household furnishings, and industrial products.
Headquartered in Cleveland, Ohio, the Company has approximately 6,700 employees globally and reported sales of $2.0 billion in 2006. Additional information about the Company can be found at www.ferro.com.
CONTACT: Ferro Corporation
Investor Contact:
David Longfellow, 216-875-7155
Director, Investor Relations
E-mail: longfellowd@ferro.com
or
Media Contact:
Mary Abood, 216-875-6202
Director, Corporate Communications
E-mail: aboodm@ferro.com
SOURCE: Ferro Corporation
