Ferro to Restructure European Plastics Operations

Ferro Corporation (NYSE: FOE) announced additional restructuring actions to reduce costs related to the Company's European plastics manufacturing. This action is the latest restructuring step in a group of projects that were initiated in connection with Ferro's equity offering in November 2009.

As a result of this action, plastics manufacturing in Rotterdam, the Netherlands, will be consolidated into Ferro's existing operations in Almazora, Spain and the Rotterdam plant will be closed. In total, approximately 44 positions are expected to be eliminated as a result of the restructuring. The actions are expected to be completed during the quarter ended June 30, 2010.

"We continue to take actions to optimize our cost structure around the world in order to best serve our customers with high-quality, cost-effective products," said Peter Thomas, Ferro Vice President, Polymer and Ceramic Engineered Materials.

The Company expects to record net charges of approximately $6 million in the three-month period ended June 30, 2010, related to the costs of this restructuring action. The charges include approximately $6 million in severance costs, a $2 million accrual for site environmental remediation activities and other charges of approximately $1 million, partially offset by a pension curtailment gain of approximately $3 million. Cost estimates do not include gains or losses related to possible settlement of the pension plan. The initiatives are expected to generate pre-tax cost and expense savings of approximately $5 million on an annual basis.


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