Oct 10, 2012 - US Ferro Corp (NYSE:FOE) on Tuesday trimmed its adjusted diluted earnings per share (EPS) guidance to USD 0.07-0.12 (EUR 0.054-0.093), mainly due to expected weak results of its solar pastes and metal powders businesses combined with the weak business conditions in Europe.
Earlier, the technology-based performance materials supplier guided for adjusted EPS of USD 0.15 to USD 0.20.
Yet, the revised EPS projection includes an expected positive adjustment of some USD 0.14 per share due to a planned charge in the company's method of recognizing defined benefit pension and other post-retirement benefit expense, it said.
Ferro anticipates USD 0.14-0.17 in loss per diluted share in its solar pastes business. The market for conductive pastes used in solar cells manufacturing faced difficulties in much of 2011 and 2012 due to overcapacity and declining prices for solar panels, the company's chairman, president and CEO James Kirsch said. Ferro is now exploring strategic options for its solar pastes segment to eliminate its influence on earnings and cash flow, he added.
Ferro also expects to book USD 175 million to USD 200 million of impairment charges related to write-downs of goodwill and other assets in the third quarter, mainly due to reduced guidance for future results in its electronic materials segment, which includes the solar pastes business.
The company targets to cut its total operating expenses by USD 30 million through 2014.
(USD 1 = EUR 0.778)
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