05 March 2013 16:33 [Source: ICIS news]
HOUSTON (ICIS)--Ferro posted a full-year 2012 net loss of $374m (€288m), compared with a profit of $4m in 2011, because of charges for restructuring, asset impairments and pension adjustments, as well as an 18% decline in sales, the US-based chemicals firm said on Tuesday.
Ferro’s 2012 full-year sales were $1.8bn, compared with $2.2bn in 2011. Gross profit fell 28% to $298m.
Ferro said that its electronics materials business saw demand for solar pastes plummet last year as the global solar industry contracted. Ferro exited its solar pastes business last month. The company also cited the weakness in European markets in explaining the declines in sales and profits.
The company, which this week rejected a takeover bid by A Schulman, said that it is now reviewing each of its product lines for future potential to create value and generate cash, and that it will redeploy or divest assets that cannot generate sufficient returns.
At the same time, Ferro will seek to cut operating costs by more than $50m over the next two years by simplifying the organisational structure, streamlining processes to make operations more efficient, and substantially reducing infrastructure and support costs, it said.
Ferro’s fourth-quarter net loss widened to $64m, from a loss of $61m in the 2011 fourth quarter. Fourth-quarter sales were $406m, down 8% year on year.
($1 = €0.77)
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