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December 14, 2007 |
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FERRO CORP: Adds Steps in Inorganic Specialties Restructuring Ferro Corporation has initiated additional steps in the restructuring of its worldwide Inorganic Specialties Group. As a result of this restructuring and the reduction of approximately 50 employee positions, the company expects to record a pre-tax charge for employee severance and pension costs of approximately US$1.6 million in the fourth quarter ended Dec. 31, 2007, and the Company may record additional charges in future periods. These charges are in addition to those included in the fourth quarter earnings estimates that the Company announced on Nov. 9. In addition to the charges announced today, Ferro estimates it may record future severance and pension costs of approximately US$2.3 million through the third quarter of 2008 related to these actions, and potential further reductions of employee positions. A final decision to proceed with actions related to any additional charges will be made after the Company has completed required consultations with employee representatives at the affected sites. These restructuring actions are part of Ferro's ongoing effort to reduce costs in its Inorganics manufacturing operations, including the reduction of annual manufacturing costs in Europe by US$40 million to US$50 million by the end of 2009. Headquartered in Cleveland, Ohio, Ferro Corporation (NYSE: FOE) -- http://www.ferro.com/ -- is a global producer of an array of specialty chemicals including coatings, enamels, pigments, plastic compounds, and specialty chemicals for use in industries ranging from construction, pharmaceuticals and telecommunications. Ferro operates through the following five primary business segments: Performance Coatings, Electronic Materials, Color and Performance Glass Materials, Polymer Additives, and Specialty Plastics. Revenues were USUS$2 billion for the FYE ended Dec. 31, 2006. Ferro Corp. has global locations in Argentina, Australia, Belgium, Brazil, China, among others. * * * As reported in the Troubled Company Reporter-Latin America on May 16, 2007, Moody's Investors Service assigned a B1 corporate family rating to Ferro Corporation. Moody's also assigned a B1 rating to the company's USUS$200 million senior secured notes (issued as unsecured notes in 2001) due in January 2009 and an SGL-3 speculative grade liquidity rating. |
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