- Ferro (FOE -5.4%) says that in Q1 the company experienced weaker demand in certain end markets and geographic regions, particularly in Europe and China; order patterns & inventory destocking contributed to the weaker demand, as well as forex headwinds affected the results
- Net Sales declined 4.4% Y/Y to $387.5M, driven by foreign currency impact, as well as lower sales volume & mix; on constant currency basis, net sales increased 0.7%.
- Destocking by high-end tile customers affected Performance Coatings’ business, and weather-related weakness in construction markets impacted the Color Solutions’ pigments business.
- Sales by segment: Performance Coatings: $170.3M (-7.7%); Performance Colors & Glass: $120.8M (+0.3%); Color Solutions: $96.4M (-4%)
- Overall adj. gross margin compresses ~150bps to 27%; adj. EBITDA declines from $64M to $48M.
- Provides updated 2019 guidance with adj. EBITDA of ~$250-$260M, diluted EPS between $1.35-$1.45, and adj. free cash flow from operations conversions between 45%-50%.
- Previously: Ferro beats by $0.01, misses on revenue (May 1)