V. for approximately 2.9 million Euro (approximately $4.5 million at current exchange rates).The sale is expected to close in the fourth quarter of 2008 after receipt of certain conditions precedent, including local government consents and completion of the buyer's environmental survey of the property.
Ferro announced on November 2, 2007, its intention to discontinue manufacturing of porcelain enamel frit at the Rotterdam location during 2008 and to consolidate the production at other Ferro locations.
About Ferro Corporation
Ferro Corporation (http://www.ferro.com) is a leading global supplier of technology-based performance materials for manufacturers. Ferro materials enhance the performance of products in a variety of end markets, including electronics, solar energy, telecommunications, pharmaceuticals, building and renovation, appliances, automotive, household furnishings, and industrial products.
Headquartered in Cleveland, Ohio, the Company has approximately 6,300 employees globally and reported 2007 sales of $2.2 billion.
Cautionary Note on Forward-Looking Statements
Certain statements in this Ferro press release may constitute "forward-looking statements" within the meaning of Federal securities laws. These statements are subject to a variety of uncertainties, unknown risks and other factors concerning the Company's operations and business environment, which are difficult to predict and often beyond the control of the Company. Important factors that could cause actual results to differ materially from those suggested by these forward-looking statements, and that could adversely affect the Company's future financial performance, include the following:
We depend on reliable sources of raw materials and other supplies at a reasonable cost, but availability of such materials and supplies could be interrupted and/or the prices charged for them could escalate. The markets in which we participate are highly competitive and subject to intense price competition.
We are striving to improve operating margins through sales growth, price increases, productivity gains, and improved purchasing techniques, but we may not be successful in achieving the desired improvements.
We are engaged in restructuring programs to improve manufacturing efficiency and reduce costs. If we are not successful in the execution of our restructuring programs we will not realize the expected cost savings. Our products are sold into industries where demand is unpredictable, cyclical or heavily influenced by consumer spending.
The global scope of our operations exposes us to risks related to currency conversion and changing economic, social and political conditions around the world. We have a growing presence in the Asia-Pacific region where it can be difficult for an American company to compete lawfully with local competitors. Regulatory authorities in the U.S., European Union and elsewhere are taking a much more aggressive approach to regulating hazardous materials and those regulations could affect our sales and operating profits.
Our operations are subject to stringent environmental, health and safety regulations and compliance with those regulations could require us to make significant investments.
We depend on external financial resources and any interruption in access to capital markets or borrowings could adversely affect our financial condition. Interest rates on some of our external borrowings are variable and our borrowing cost could be affected adversely by interest rate increases.
Many of our assets are encumbered by liens that have been granted to lenders and those liens affect our flexibility in making timely dispositions of property and businesses.
We are subject to a number of restrictive covenants in its credit facilities and those covenants could affect our flexibility in funding strategic initiatives. We have significant deferred tax assets and our ability to utilize these assets will depend on our future performance.
We are a defendant in several lawsuits that could have an adverse effect on our financial condition and/or financial performance, unless they are successfully resolved.
Our businesses depend of a continuous stream of new products and failure to introduce new products could affect our sales and profitability.
Employee benefit costs, especially post-retirement costs, constitute a significant element of our annual expenses, and funding these costs could adversely affect our financial condition.
We are exposed to risks associated with acts of God, terrorists and others, as well as fires, explosions, wars, riots, accidents, embargoes, natural disasters, strikes and other work stoppages, quarantines and other governmental actions, and other events or circumstances that are beyond the Company's reasonable control.
Additional information regarding these risk factors can be found in the Company's Annual Report on Form 10-K for the period ended December 31, 2007.
The risks and uncertainties identified above are not the only risks the Company faces. Additional risks and uncertainties not presently known to the Company or that it currently believes to be immaterial also may adversely affect the Company. Should any known or unknown risks and uncertainties develop into actual events, these developments could have material adverse effects on the Company's business, financial condition and results of operations.
This release contains time-sensitive information that reflects management's best analysis only as of the date of this release. The Company does not undertake any obligation to publicly update or revise any forward-looking statements to reflect future events, information or circumstances that arise after the date of this release.
CONTACT: Ferro Corporation
David Longfellow, 216-875-7155
Director, Investor Relations, Ferro Corporation
Mary Abood, 216-875-6202
Director, Corporate Communications, Ferro Corporation