US Ferro Q1 net income plummets on sales drop, restructuring

24 April 2013 23:06  [Source: ICIS news]

HOUSTON (ICIS)--US-based specialty chemicals producer Ferro reported on Wednesday a Q1 net income of $883,000 (€680,000), down sharply from $3.85m reported for the same time last year.

Ferro attributed the net income drop to a decrease in net sales and one-time losses and charges.

Gross profit was $79.2m, down by nearly 7.6% from $85.7m from the same time last year.

Q1 sales were $417.5m, down about 9.3% from $460.4m reported the same time last year. Ferro attributed the drop in sales to lower volumes as well as changes in pricing and product mix, the company said.

Cost of sales was $338.3m, down from $374.7m reported for the same time last year.

During the first quarter, Ferro reported large restructuring charges and losses from discontinued operations, which more than offset a large increase in miscellaneous income.

During the quarter, Ferro sold its solar-paste assets.

To help even out the one-time items, Ferro calculated that adjusted earnings before interest, tax, depreciation and amortisation (EBITDA) were $32m, compared with $28m for the same time last year.

($1 = €0.77)

By: Al Greenwood
+1 713 525 2645

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