Ferro Reports Resilient Second Quarter 2020 Performance

Innovation and optimization drive year-over-year Gross Profit Margin expansion

Second Quarter Continuing Operations ^*:

• Net Sales declined 21.5% to $204.8M, or 19.6% on a constant currency basis
• Gross Profit declined 19.4% to $63.7M, Gross Profit Margin improved 80 bps to 31.1%
• Adjusted Gross Profit Margin improved 30 bps to 32.1%
• GAAP diluted EPS of $(0.03), Adjusted diluted EPS of $0.12
• Net Loss¹ declined 151.0% to $5.5M, Adjusted EBITDA declined 29.5% to $30.9M
• Adjusted EBITDA Margin declined to 15.1%

Full Year Continuing Operations ^*:

• Net Sales declined 12.8% to $457.1M, or 10.9% on a constant currency basis
• Gross Profit declined 8.0% to $144.5M, Gross Profit Margin improved 170 bps to 31.6%
• Adjusted Gross Profit Margin improved 130 bps to 32.3%
• GAAP diluted EPS of $0.16, Adjusted diluted EPS of $0.37
• Net Income¹ declined 56.8% to $10.6M, Adjusted EBITDA declined 8.5% to $71.6M
• Adjusted EBITDA Margin improved 80 bps to 15.7%

* Comparative information is relative to prior-year second quarter and prior-year to June 30 year to date for Continuing Operations.
¹ Note: Net Income (Loss) attributable to Ferro Corporation common shareholders.

CLEVELAND--(BUSINESS WIRE)--Ferro Corporation (www.ferro.com) is a leading global supplier of technology-based functional coatings and color solutions. Ferro supplies functional coatings for glass, metal, ceramic and other substrates and color solutions in the form of specialty pigments and colorants for a broad range of industries and applications. Ferro products are sold into the building and construction, automotive, electronics, industrial products, household furnishings and appliance markets. The Company’s reportable segments include: Functional Coatings and Color Solutions. Headquartered in Mayfield Heights, Ohio, the Company has approximately 5,890 associates globally and reported 2019 sales of $1.0 billion. Included within our employee count are approximately 2,100 employees in our foreign consolidated subsidiaries associated with the Tile Coatings Systems business.

Conference Call

Ferro will conduct an investor teleconference at 8:00 a.m. EDT Wednesday August 5, 2020. Investors can access this conference via any of the following:

• Webcast can be accessed by clicking on the Investors link at the top of Ferro’s website at ferro.com.
• Live telephone: Call 800-735-5968 within the U.S. or [phone] outside the U.S. Please join the call at least 10 minutes before the start time.
• Webcast replay: Available on Ferro’s Investor website at ferro.com beginning at approximately 4:30 p.m. Eastern Time on August 5, 2020.
• Telephone replay: Call 800-633-8284 within the U.S. or [phone] outside the U.S. (for both U.S. and outside the U.S. access code is 21966876).
• Presentation material and podcast: Earnings presentation material and podcasts can be accessed through the Investors portion of the Company’s website at ferro.com.