Ferro Corp. (FOE) Tops Q1 EPS by 5c; Lifts Outlook

Ferro Corp. (NYSE: FOE) reported Q1 EPS of $0.23, $0.05 better than the analyst estimate of $0.18. Revenue for the quarter came in at $263 million versus the consensus estimate of $274.6 million.

Ferro Corp. sees FY2015 EPS of $0.89-$0.96, versus the consensus of $0.89.

Peter Thomas, Chairman, President and Chief Executive Officer, commented, “We’re off to a strong start for 2015 with solid earnings for the first quarter and continued progress on our inorganic growth strategy with the announced acquisition of Nubiola. For the quarter, adjusted earnings per share from continuing operations increased by 64% on a 7% increase in constant currency value-added sales. Earnings benefited from higher gross profit on a constant currency basis, our cost optimization initiatives, which drove a further reduction in SG&A expenses for the base business, and a lower income tax rate.

“While first-quarter global economic conditions were weaker than expected, we remain optimistic about higher sales growth for the full year. We are beginning to see positive economic developments in key regions and markets, including higher domestic auto demand in Europe, signs of recovery in Spain, and stronger demand in the Middle East. We expect the momentum in Performance Color and Glass will carry through 2015 and believe we will see improved sales growth throughout 2015 in both the Performance Coatings and PPO segments."

Mr. Thomas continued, “We also announced an agreement to acquire Nubiola, a worldwide producer of specialty inorganic pigments and the world’s largest producer of Ultramarine Blue. The combination will substantially improve our position in inorganic pigments by expanding our product portfolio and geographic reach. The transaction is expected to close within the next 60 days, and we expect it to be immediately accretive to earnings. For this reason, we are increasing our 2015 adjusted diluted earnings guidance to $0.89 to $0.96 per share. Meanwhile, we continue to actively pursue additional business opportunities to strengthen our position in glass-based coatings and as a provider of color solutions for industrial applications.”

For earnings history and earnings-related data on Ferro Corp. (FOE) click here.

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