Ferro Announces Restructuring Initiatives In European Manufacturing Operations

Date: 22 February 2010
Source: Ferro

Date: 22 February 2010

CLEVELAND, Feb 18, 2010 (BUSINESS WIRE) -- Ferro Corporation (NYSE: FOE) announced additional restructuring initiatives that are expected to further reduce costs of the Company's European manufacturing operations.

The initiatives include restructuring and cost-reduction activities funded through Ferro's equity offering in November 2009 and the continuation of a multi-year restructuring effort that the Company announced in 2006.
As a result of the new initiatives, Ferro expects to discontinue manufacturing of dinnerware frit materials in Castanheira, Portugal. This action represents the final step in consolidation of high-volume frit production into the Company's manufacturing site in Almazora, Spain. The Company also announced plans to consolidate plastics manufacturing from Portugal to its existing plastics production facility in Almazora, Spain. Because of the manufacturing consolidation, the number of selling, general and administrative positions in Portugal are expected to be reduced as well. In total, approximately 125 positions are expected to be eliminated when the initiatives are completed by August 2010. Ferro continues to manufacture certain metal oxides in Portugal that are not affected by this announcement.
"We continue to take actions that ensure that our high-volume manufacturing operations deliver value to our customers and shareholders, now and in the future," said Ferro Chairman, President and CEO James F. Kirsch. "These new initiatives are expected to provide an additional reduction in our sales breakeven level as we restructure our global manufacturing assets to deliver a world-class cost structure."
The Company expects to record charges of approximately $14 million in the six month period ended June 30, 2010, related to the costs of these restructuring actions. The charges include approximately $8 million in severance costs, $3.4 million in asset write-offs and $1.4 million in dismantling costs. The initiatives are expected to generate pre-tax cost and expense savings of approximately $5 million on an annual basis.

600450 Ferro Announces Restructuring Initiatives In European Manufacturing Operations glassonweb.com

See more news about:

Others also read

Dip-Tech, the digital ceramic glass printing business unit of Ferro, is pleased to announce the release of its new Automotive Black Anti-Stick Digital Ink (CASS_0775).
Dip-Tech, the digital ceramic glass printing business unit of Ferro, is proud to announce the release of its newest machine for the architectural flat glass market, Dip-Tech DX-3.
Dip-Tech, the digital ceramic glass printing business unit of Ferro, is pleased to share that top automotive glass producers are achieving superb results with its Conductive Silver Digital Ink (CASS_0777).
Dip-Tech Releases Spectrum R – A New and Improved Digital Ink Series for All Applications.
Say goodbye to a mono-colored appliances glass era and hello to Dip-Tech VEra Digital Printing and it’s about to change everything…
This speedy, fully automated machine is ready to make digital glass printing for serial production your advantage.

Add new comment