MRO Magazine

Ferro’s Nubiola Business Announces Price Increase for Ultramarine Pigments

December 9, 2015
By Business Wire News


Nubiola, a Ferro company, has announced it will implement a worldwide price increase of its Ultramarine pigment product line by 6%, effective with new orders placed March 1, 2016.

The Company said the increase is due to labor and key raw material cost increases. “We continue to work toward cost efficiencies in production processes, energy, transportation, and commodities to maintain favorable product pricing for our customers,” said Matthias P. Bell, Vice President and head of Ferro’s Pigments, Powders and Oxides business. “At the same time, we are making significant investments to ensure compliance with the latest international environmental regulations; GHS; REACH product stewardship; health and safety; and increased production capacity. This price increase will help assure we continue to meet growing demand with high-quality products and customer support services.”

About Ferro Corporation

Ferro Corporation (NYSE:FOE, is a leading global supplier of technology-based performance materials, including glass-based coatings, pigments and colors, and polishing materials. It is the world’s leading producer of Ultramarines, as well as an extensive line of inorganic pigments and Complex Inorganic Color Pigments. Ferro products are sold into the building and construction, automotive, appliances, electronics, household furnishings, and industrial products markets. Headquartered in Mayfield Heights, Ohio, the Company has approximately 4,740 employees globally and reported 2014 sales of $1.1 billion.

Cautionary Note on Forward-Looking Statements

Certain statements in this 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. 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:

  • Ferro’s ability to complete acquisitions, effectively integrate the businesses and achieve the expected synergies (including the Al Salomi, Nubiola and Vetriceramici transactions), as well as the acquisitions being accretive and Ferro achieving the expected returns on invested capital;
  • Ferro’s ability to successfully introduce new products or enter into new growth markets;
  • demand in the industries into which Ferro sells its products may be unpredictable, cyclical, or heavily influenced by consumer spending;
  • Ferro’s ability to successfully implement and/or administer its cost-saving initiatives, including its restructuring programs, and to produce the desired results;
  • currency conversion rates and economic, social, political, and regulatory conditions around the world;
  • the effectiveness of the Company’s efforts to improve operating margins through sales growth, price increases, productivity gains, and improved purchasing techniques;
  • the impact of interruption, damage to, failure, or compromise of the Company’s information systems;
  • the availability of reliable sources of energy and raw materials at a reasonable cost;
  • Ferro’s presence in certain geographic regions, including Latin America and Asia-Pacific, where it can be difficult to compete lawfully;
  • increasingly aggressive domestic and foreign governmental regulations on hazardous materials and regulations affecting health, safety and the environment;
  • sale of products into highly regulated industries;
  • limited or no redundancy for certain of the Company’s manufacturing facilities and possible interruption of operations at those facilities;
  • competitive factors, including intense price competition;
  • Ferro’s ability to protect its intellectual property or to successfully resolve claims of infringement brought against it;
  • the impact of operating hazards and investments made in order to meet stringent environmental, health and safety regulations;
  • management of Ferro’s general and administrative expenses;
  • Ferro’s multi-jurisdictional tax structure and its ability to reduce its effective tax rate, including the impact of the Company’s performance on its ability to utilize significant deferred tax assets;
  • the effectiveness of strategies to increase Ferro’s return on invested capital, and the short-term impact that acquisitions may have on return on invested capital;
  • stringent labor and employment laws and relationships with the Company’s employees;
  • the impact of requirements to fund employee benefit costs, especially post-retirement costs;
  • implementation of new business processes and information systems, including the outsourcing of functions to third parties;
  • exposure to lawsuits in the normal course of business;
  • Ferro’s borrowing costs could be affected adversely by interest rate increases;
  • restrictive covenants in the Company’s credit facilities could affect its strategic initiatives and liquidity;
  • Ferro’s ability to access capital markets, borrowings, or financial transactions;
  • liens on the Company’s assets by its lenders affect its ability to dispose of property and businesses;
  • risks and uncertainties associated with intangible assets;
  • Ferro may not pay dividends on its common stock in the foreseeable future;
  • amount and timing of any repurchase of common stock; and
  • other factors affecting the Company’s business that are beyond its control, including disasters, accidents and governmental actions.

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 our 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. Additional information regarding these risks can be found in our Annual Report on Form 10-K for the period ended December 31, 2014.

Ferro Corporation
Mary Abood, 216-875-5401
Director, Corporate Communications