Industry News

Ferro's Rigid Polymer and Flexible Polymer Applications Businesses Announce Price Increases

Published on 2007-07-26. Author : SpecialChem

CLEVELAND, -- Ferro Corporation (NYSE:FOE) announced it is increasing the price in North America for all dry grades of Metallic Stearates by $0.10 per pound and Aqueous Stearate Dispersions by $0.05-$0.10 per pound, effective August 15, 2007. David Ankrett, Business Director, Rigid Polymer Applications, noted that the increase is due to the sharp escalation in the cost of tallow, the principal raw material used in the manufacture of Metallic Stearates. Metallic Stearates are used in a number of manufacturing applications, including lubrication and stabilization of plastics; surface enhancement of coatings, inks and lacquers; and as a waterproofing additive in concrete, textiles and papers.

Ferro also announced it is increasing the price in North America for Benzyl Chloride by $0.04 per pound effective August 15, 2007, and Epoxidized Soybean Oil by $0.05 per pound, effective September 1, 2007. Paul Angus, Business Director, Flexible Polymer Applications, noted that the increase is necessary as a result of increases in raw material, operational and transportation costs.

Benzyl Chloride is an intermediate used in a number of applications, including institutional cleaners and oilfield additives. Epoxidized Soybean Oil is a secondary stabilizer and plasticizer used in flexible vinyl and other polymers.

About Ferro Corporation

Ferro Corporation 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, solar energy, telecommunications, pharmaceuticals, building and renovation, appliances, automotive, household furnishings, and industrial products. Headquartered in Cleveland, Ohio, the Company has approximately 6,700 employees globally and reported sales of $2.0 billion in 2006.

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 raw materials and other supplies;
  • intense competition in the markets the Company serves;
  • successful execution of projects designed to improve operating margins;
  • successful execution of restructuring programs to improve manufacturing efficiency and reduce costs;
  • 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 our products;
  • costs of compliance with stringent environmental, health and safety regulations;
  • access to capital markets or borrowings;
  • variable interest rates on some of our external borrowings could increase;
  • encumbrances on the Company's assets granted to lenders affect our flexibility to dispose of assets;
  • restrictive covenants in our credit facilities could affect our flexibility in funding strategic initiatives;
  • the Company's 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;
  • the uncertainty of future employee benefit costs and the impact of funding of those costs; 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 Annual Report on Form 10-K for the period ended December 31, 2006.

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.

Source: Ferro Corporation

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