SAN FRANCISCO (Thomson Financial) - Ferro Corp. said late Friday it will
stop making tile frits and tile color products at its facilities in Americana,
Brazil, by the end of June, cutting 73 jobs in the process.
The company expects the move to generate $2 million to $2.5 million in
annual savings, and expects to record $1.4 million in pre-tax charges during the
second quarter, including severance costs and asset impairment charges.
The charges are expected to reduce second-quarter earnings by 2 cents a
share.
Ferro will continue to produce porcelain enamel frit and glass color and
glaze products at the Americana site.
Cleveland-based Ferro also said it would take additional actions in its
inorganic specialties business as part of its move to reduce expenses.
As a result, the company expects cut 13 jobs, primarily in Europe and Asia,
and to record a pre-tax charge of roughly $2.2 million related to severance
costs in the second quarter.
The charge is expected to reduce earnings by roughly 3 cents a share. Annual
savings resulting from expense reduction is expected to be around $1.4 million.
Shares of Ferro closed at $20.50.
Gabriel Madway
gm
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