Ferro’s first-quarter loss narrows on lower costs, higher sales

Ferro 1Q loss narrows on revenue boost

CLEVELAND — Industrial materials maker Ferro Corp. narrowed its net loss in the first quarter as sales increased from last year, when customers were using up their inventory amid the economic slump.

The company raised its expectations for sales growth for the year above analyst estimates.

The company lost $233,000, or zero cents a share, in the three-month period ending March 31. That compares to a year-ago loss of $20.5 million, or 46 cents a share.

Revenue rose 38 percent to $492.9 million from $357.8 million.

The company incurred impairment charges of $2.2 million in the quarter relating to the reduction in value of a manufacturing site in Limoges, France. The site will close this year.

Analysts surveyed by Thomson Reuters expected profit of 6 cents per share on revenue of $428.8 million. The items typically exclude items.

The company said income increased across all of its segments. The electronics materials segment saw strong demand for conductive pastes and powders, particularly one used to make solar cells.

Sales volume of performance coatings, color and glass performance materials, and precious metals improved during the quarter and benefitted from reduced costs.

The company said its outlook for 2010 assumes worldwide real GDP growth of more than 2 percent. Based on that and other assumptions, Ferro boosted its net sales estimate, saying the figure would rise between 10 and 15 percent for the year to between $1.85 billion and $1.95 billion. In March, the company had said it expected 2010 net sales to grow between 5 percent and 10 percent, to $1.75 billion and $1.85 billion.

Analysts expect revenue of $1.8 billion for the year, according to Thomson.

The company also announced Tuesday it expects adjusted earnings before interest and taxes to range between $190 million and $210 million. Analysts expect the company’s adjusted earnings to be $195.6 million, according to Thomson.

Shares of Ferro fell 34 cents, or 3 percent, to close at $10.17 on Tuesday before the release of the earnings report. Earlier in the session, shares set a new 52-week high of $10.72.