CLEVELAND--(BUSINESS WIRE)--Sept. 9, 2008--Ferro Corporation's
(NYSE:FOE) Porcelain Enamel business has announced porcelain enamel
product price increases for North America (including Mexico).
Increases are between 6 and 12 percent, and up to 20 percent for some
specialty products. Pricing changes are in effect as of September 1,
2008.
The cost of key raw materials and energy used in the production of
porcelain enamel products have increased significantly, with titanium
dioxide prices still escalating rapidly. Ferro said surcharges will
also remain in effect for nickel and cobalt as long as these metal
prices remain volatile. Cost pressures are not expected to decrease in
the near future due to the current economic conditions.
"Even with our product reformulations and substitutions and supply
chain management efforts, we are unable to offset raw material,
transportation and energy costs enough to avoid implementing porcelain
enamel price increases this year," said Lee Gauthier, North American
Business Director, Inorganic Specialties. "However, we continue to
work hard at finding ways to provide our customers with the most
cost-effective solutions, in spite of the tough economy."
Ferro is the world's leading supplier of porcelain enamel, a glass
that is bonded to metal (generally carbon steel, stainless steel, cast
iron or aluminum) at temperatures from 1000 degreesF - 1600 degreesF.
Porcelain enamel has long been used as an ultimate quality, highly
durable and sanitary finish on large and small appliances, cookware
and grills, sanitary ware, water heaters, building panels, signage,
and chemical storage vessels. Ferro serves porcelain enamel customers
worldwide from locations in North America, South America, Europe,
Asia, and Australia.
About Ferro
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, telecommunications, building and
renovation, appliances, automotive, household furnishings, industrial
products, and pharmaceuticals. Headquartered in Cleveland, Ohio, the
Company has approximately 6,300 employees globally and reported sales
of $2.2 billion in 2007.
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, but are not limited
to the following:
-- the availability and cost of energy, raw materials and other
supplies;
-- intense competition in the markets the Company serves;
-- successful execution of projects designed to improve operating
margins;
-- the unpredictability and cyclicality of demand in the
Company's markets;
-- exposure to currency conversion and changing global economic,
social and political conditions;
-- the Company's ability to compete lawfully with local
competitors in the Asia-Pacific region;
-- aggressive global regulation of hazardous materials could
affect sales of the Company's products;
-- costs of compliance with stringent environmental, health and
safety regulations;
-- access to capital markets or borrowings;
-- variable interest rates on some of the Company's external
borrowings could increase;
-- encumbrances on the Company's assets granted to lenders affect
its flexibility to dispose of assets;
-- restrictive covenants in the Company's credit facilities could
affect its flexibility in funding strategic initiatives;
-- the ability to utilize significant deferred tax assets;
-- the outcome of any legal claims against the Company;
-- the Company's ability to continuously introduce new products
to respond to demand;
-- relationships with employees or employees' representatives
could deteriorate;
-- the uncertainty of future employee benefit costs and the
impact of funding of those costs;
-- the Company's restructuring programs may not provide
sufficient cost savings;
-- intangible asset risks;
-- material weaknesses in internal controls and possible future
material weaknesses; and
-- 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 Quarterly Report on Form 10-Q for the period ended
June 30, 2008 and other filings with the SEC.
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: Porcelain Enamel Products
Brad Devine, 216-750-6343
Sales & Marketing Manager
E-mail: devineb@ferro.com
or
Ferro Corporation
Media Contact:
Mary Abood, 216-875-6202
Director, Corporate Communications
E-mail: aboodm@ferro.com
SOURCE: Ferro Corporation
