Dec 14 2007
Ferro Corporation announced today that it has initiated additional steps in the restructuring of its worldwide Inorganic Specialties Group. As a result of this restructuring and the reduction of approximately 50 employee positions, the Company expects to record a pre-tax charge for employee severance and pension costs of approximately $1.6 million in the fourth quarter ended December 31, 2007, and the Company may record additional charges in future periods. These charges are in addition to those included in the fourth quarter earnings estimates that the Company announced on November 9.
In addition to the charges announced today, Ferro estimates it may record future severance and pension costs of approximately $2.3 million through the third quarter of 2008 related to these actions, and potential further reductions of employee positions. A final decision to proceed with actions related to any additional charges will be made after the Company has completed required consultations with employee representatives at the affected sites.
These restructuring actions are part of Ferro's ongoing effort to reduce costs in its Inorganics manufacturing operations, including the reduction of annual manufacturing costs in Europe by $40 million to $50 million by the end of 2009.