Ferro Corp. Reports Strong Sales In Electronic Materials Group for June 2010 Quarter

Ferro Corporation announced net sales of $543 million for the three months ended June 30, 2010, an increase of 36 percent from net sales of $399 million in the second quarter of 2009.

Net sales increased 36 percent compared with the second quarter of 2009 as customer demand continued to recover from the global economic downturn in 2009. In the second quarter of 2010, demand continued in a pattern of sequential growth that began in the second quarter of 2009. Compared with the 2009 second quarter, increased sales volume contributed 30 percentage points to the growth in sales while changes in product mix and price contributed 8 percentage points of sales growth. Changes in foreign currency exchange rates reduced sales growth by approximately 2 percentage points. Increased sales of precious metals, including changes in both price and volume, accounted for approximately 10 percentage points of the overall sales increase compared with the prior-year period.

Customer demand is expected to follow historical seasonal trends during 2010, with higher sales and profitability in the first half of the year compared with the second half. Reductions in the Company’s cost structure that were accomplished in 2009 are expected to provide improved profitability in 2010. In addition, the Company continues to execute additional manufacturing rationalization and expense reduction initiatives during 2010, including plant closings and staffing reductions.

The Company’s current outlook for 2010 assumes that worldwide real GDP growth will recover to greater than 2% and that there will not be a return to recessionary conditions in the Company’s major regional markets in the United States, Europe and Asia.

Based on these assumptions and the first half results, the Company has increased its estimates for 2010 financial performance. The Company currently estimates full-year 2010 net sales will increase between 15 and 20 percent compared with 2009.

Editors’ Note: Sales in The Electronic Materials Group at Ferro Corporation were $174 million for the three months ending June 2010, up by 18% compared to the previous quarter, and up by 72% compared to the same period in 2009. It is important to note that electronic material sales at Ferro Corp. have almost returned to their pre-downturn level, but at much higher profitability.

Ferro Corporation Quarterly Sales of Electronic Materials


Sales in The Electronic Materials Group at Ferro Corporation were $174 million for the three months ending June 2010, up by 18% compared to the previous quarter, and up by 72% compared to the same period in 2009. It is important to note that electronic material sales at Ferro Corp. have almost returned to their pre-downturn level, but at much higher profitability.

Additional Resources: (1) Ceramic Dielectric Materials: World Markets, Technologies & Opportunities: 2008-2013 ISBN # 0-929717-76-7 (2008) (2) Critical Metals Markets for Passive Components: 2007-2011 ISBN # 0-929717-38-4 (2007)