CLEVELAND (AP) - Ferro Corp., a maker of colorants and chemicals used by manufacturers, on Wednesday said fiscal first-quarter earnings ballooned, fueled by strong sales across several businesses.
In addition, Ferro announced a plan to restructure operations with the goal of saving between $40 million and $50 million in annual operating costs by 2009. The company said it expects to log about $11 million in asset write-offs and $5 million in severance costs beginning in the fourth quarter this year.
After paying preferred dividends, first-quarter net income surged to $6.7 million, or 16 cents per share, from $109,000, or break-even per share. The recent quarter included $6.71 million, or 9 cents per share, in charges for an accounting investigations and benefits curtailment, partially offset by favorable pension plan changes.
A year ago, charges reduced net income by 11 cents per share.
Revenue rose 9 percent to $505 million from $461.7 million in the prior-year period. The company's cost of sales rose 8 percent to $397.4 million, while selling, general and administrative costs declined 4 percent $80 million.
Analysts polled by Thomson Financial forecast earnings of 25 cents per share on $503.6 million in sales. The consensus earnings estimate excludes 11 cents in charges related to the benefits and pension plan changes.
Ferro attributed the improved results to growth in its electronic materials, performance coatings, specialty plastics and other segments. The company called its volume and price mix ''positive'' in the quarter.
The company sees second-quarter sales in a range of $530 million to $540 million and earnings from continuing operations of 21 cents to 25 cents per share. Analysts forecast sales of $530.5 million and earnings of 32 cents per share in the coming quarter.
President and Chief Executive James Kirsch said Ferro's ''businesses are delivering increased volumes, pricing is improving and expense reduction efforts are progressing.''