Ferro Corporation's (NYSE: FOE) Engineered Polymer Products (EPP) business has introduced several new products that cut costs or provide enhanced performance to end-use products.
New Gapex® HP products
These new high performance, chemically coupled fiberglass-reinforced polypropylene compounds provide 15 to 30 percent higher tensile strength and rigidity than Ferro's standard Gapex compounds. These attributes allow the use of lower glass loadings without sacrificing performance when compared to traditional Gapex products. In addition, with Gapex HP products, it is possible to offer equivalent performance at slightly higher or equal glass loadings, and a lower cost per pound and cost per cubic inch when compared to traditional long-glass products. The products also have better molding properties with lower scrap rates. Gapex HP products are colorable, UL-listed, and are ideal to use as replacements for structural and metal parts in appliances, seating, automotive under-the-hood, and other applications. Glass reinforcement levels range from 20 to 50 percent in the product family.
Glass- or mineral-filled reclaimed polypropylene
Ferro has developed a line of recycled products aimed at keeping glass- and mineral-filled polyproylene out of landfills and making it into usable materials for less demanding, economically-driven applications. These include non-structural automotive under-hood parts, shipping skids, flower pots, and outdoor decorative items. Products are available with glass or mineral levels ranging from 20 to 40 percent, in black only.
Cost-effective white color concentrates
Ferro has formulated a new, more cost-effective product line of white color concentrates in response to customers' needs for high-volume applications such as appliances and packaging. The products provide the same physical and mechanical properties and meet the same color standards as Ferro's traditional white colorants. Compared to the traditional colorants, the new products show no noticeable difference in color, brightness, or opacity in injection molding applications where the part is greater than .065 inches thick; variations of up to 10 percent may occur in thinner applications. The new white color concentrates are tailored to match customers' needs and can be highly loaded to minimize usage levels.
Anti-microbial additive for color concentrates
Ferro has expanded its color concentrates additive line with an organic anti-microbial that enables manufacturers to add prevention of fungal and bacterial growth to their plastic products during processing. This can reduce odor and cleaning needs for dishwashers, refrigerators and other appliances, housewares, wastebaskets, storage bins, dumpsters, and hospital and medical equipment. The additive has NSF and FDA regulatory approvals for food contact. It can be incorporated into Ferro's full range of colorants, including special effects and tints, and can be processed under normal injection molding and extrusion conditions with temperatures of less than 600ËšF.
Ferro EPP is a one-stop source for mineral- and glass-filled compounds, color concentrates, and thermoplastic polyethylene (TPE) products. EPP serves a broad range of industries, including large and small appliances, automotive parts, commercial trucks, power sports vehicles, housewares, floorcare, liquid handling, medical equipment, food packaging, disposable utensils, synthetic cork, lawn and garden, power hand tools, sports and recreation, wire and cable, and computer peripherals. Its products are available from plants in the United States, Mexico, Venezuela, Spain, and The Netherlands.
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 the following:
- We depend on reliable sources of energy and raw materials, including petroleum-based materials, and other supplies, at a reasonable cost, but availability of such materials and supplies could be interrupted and/or the prices charged for them could escalate.
- The markets in which we participate are highly competitive and subject to intense price competition.
- We are striving to improve operating margins through sales growth, price increases, productivity gains, improved purchasing techniques, and restructuring activities, but we may not be successful in achieving the desired improvements.
- Our products are sold into industries where demand is unpredictable, cyclical or heavily influenced by consumer spending, and such demand may be impacted by macro-economic circumstances and uncertainties in credit markets.
- The global scope of our operations exposes us to risks related to currency conversion rates and changing economic, social and political conditions around the world.
- We have a growing presence in the Asia-Pacific region where it can be difficult for a U.S.-based company to compete lawfully with local competitors.
- Regulatory authorities in the U.S., European Union and elsewhere are taking a much more aggressive approach to regulating hazardous materials and those regulations could affect our sales and operating profits.
- Our operations are subject to operating hazards and, as a result, to stringent environmental, health and safety regulations and compliance with those regulations could require us to make significant investments.
- We depend on external financial resources and the economic environment and credit market could interrupt our access to capital markets, borrowings, or financial transactions to hedge certain risks, which could adversely affect our financial condition.
- Interest rates on some of our external borrowings are variable, and our borrowing costs could be affected adversely by interest rate increases.
- Many of our assets are encumbered by liens that have been granted to lenders, and those liens affect our flexibility in making timely dispositions of property and businesses.
- We are subject to a number of restrictive covenants in our credit facilities, and those covenants could affect our flexibility in funding strategic initiatives and lead to challenges in meeting our liquidity requirements.
- We have significant deferred tax assets, and our ability to utilize these assets will depend on our future performance.
- We are a defendant in several lawsuits that could have an adverse effect on our financial condition and/or financial performance, unless they are successfully resolved.
- Our businesses depend on a continuous stream of new products, and failure to introduce new products could affect our sales and profitability.
- We are subject to stringent labor and employment laws in certain jurisdictions in which we operate and party to various collective bargaining arrangements, and our relationship with our employees could deteriorate, which could adversely impact our operations.
- Employee benefit costs, especially post-retirement costs, constitute a significant element of our annual expenses, and funding these costs could adversely affect our financial condition.
- Our restructuring initiatives may not provide sufficient cost savings to justify their expense.
- We are exposed to intangible asset risk.
- We have in the past identified material weaknesses in our internal controls, and the identification of any material weaknesses in the future could affect our ability to ensure timely and reliable financial reports.
- We are exposed to 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 our control.
Additional information regarding these risk factors can be found in the Company's Quarterly Report on Form 10-Q for the period ended September 30, 2008.
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.