US-based Ferro lowers adjusted earnings forecast for 2012

10 October 2012 03:42  [Source: ICIS news]

SINGAPORE (ICIS)--US-based specialty chemicals firm Ferro has lowered its 2012 adjusted earnings forecast to 7-12 cents (5-9 euro cents) per share, after adjusting for special charges following losses related to its solar paste business, it late on Tuesday.

This compares with the 15-20 cents per share estimate made previously, the company said in a statement.

“The change in guidance is primarily the result of deterioration in the company's forecast for its solar paste and metal powder businesses, and further weakening of business conditions in Europe, partially offset by the pension expense adjustment,” it added.

The company also said that it is working towards cutting operating expenses by $30m by the end of 2014, adding that operating expense reductions of $15m are expected by the end of next year.

Ferro expects to post non-cash impairment charges at between $175m and $20m during the third quarter of this year, mainly driven by “reduced forecasts of future results” in the company's electronic materials segment, which includes the solar paste unit, it added.

The company swung into a $2.8m second-quarter net loss this year.

($1 = €0.78)

By: Nurluqman Suratman

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