25 April 2012 22:42 [Source: ICIS news]
HOUSTON (ICIS)--US-based Ferro's first quarter net income fell 94% year on year because of poor performance by its electronic materials segment, the company said on Wednesday.
First quarter net income totalled $1.3m (€1.0m), down from $22.7m in the first quarter of 2011.
Net sales for the company fell 19% to $466m from $573m in the same quarter a year ago.
Ferro said reduced sales in the electronic materials segment brought down overall sales.
Net sales for the electronic materials segment fell to $71.7m in the first quarter, down from $202.3m in the same period a year ago.
The performance coatings segment had net sales of $152m, up from $136m in the first quarter of 2011.
“Reduced customer demand for conductive pastes used in solar cell applications and metal powders used in a variety of electronic products resulted in a $131m decline in sales for the electronic materials segment, including an $88m decline in sales of precious metals due to reduced volume and lower silver prices,” Ferro said. “Demand for conductive pastes remains weak.”
The company said it expects sales for the rest of the year to be in line with 2011 sales numbers, with the exception of precious metals, which are expected to decline because of lower average prices and volumes.
“Sales of electronic materials products are expected to be lower in 2012 compared with 2011,” Ferro said. “However, sales of these products are expected to improve during the course of 2012, with most of the improvement expected in the second half of the year.”
Ferro’s stock price ended the day at $5.16/share, up 2.18%.
($1 = €0.76)
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