March 5 Chemical maker Ferro Corp said
it is offloading assets that cannot generate sufficient returns,
a day after it rejected A. Schulman Inc's $563 million
The company will redeploy, divest or curtail assets, Ferro
said in its fourth-quarter earnings statement.
Ferro, which sells products used in industries such as
electronics and construction, also said it was reviewing its
product lines to determine potential to create value and
The Mayfield Heights, Ohio-based company on Monday rebuffed
Schulman's offer, saying it was better off continuing its own
Ferro could generate more value for shareholders if they
sold the company in pieces, Longbow Research analyst Dmitry
Silversteyn said on Monday.
Ferro also said on Tuesday it plans to reduce operating
costs by more than $50 million over the next two years.
The company said in early February it sold assets related to
a shrinking business that made conductive pastes used in making
solar cells to a German company for an undisclosed sum.
Ferro's fourth-quarter net loss widened to $64 million, or
74 cents per share, from $61 million, or 71 cents per share, as
sales in its electronic materials business fell.
The business reported a 22 percent fall in net sales due to
lower demand for solar paste products and precious metal powders
and flakes for other electronics applications.
Net sales fell 8 percent to $406 million.
Ferro shares were down marginally at $6.75 in early trade on
the New York Stock Exchange on Tuesday. They closed above
Schulman's offer of $6.50 per share on Monday.