For Immediate Release

Ferro Reports 2011 Second-Quarter Results

CLEVELAND, Ohio – August 1, 2011 – Ferro Corporation (NYSE: FOE, the “Company”) today announced net sales of $594 million for the three-month period ended June 30, 2011, an increase of 9 percent from net sales of $543 million in the second quarter of 2010. Net income improved to $20 million, or $0.22 per diluted share, compared with $8 million, or $0.08 per diluted share, in the prior-year quarter. Adjusted net income, excluding charges, was $24 million, or $0.27 per diluted share, compared with $30 million, or $0.35 per diluted share, in the second quarter of 2010.

2011 Second-Quarter Results

“Ferro delivered solid earnings in the second quarter, despite the expected slowdown in sales of our conductive pastes for solar applications,” said Chairman, President and Chief Executive Officer James F. Kirsch. “Our Performance Coatings, Color and Glass Performance Materials, and Specialty Plastics businesses all recorded sequential improvements in segment income from the 2011 first quarter to the second quarter as a result of seasonal gains and operational execution improvements that we implemented globally. As we anticipated, segment income declined in Electronic Materials due to reduced customer demand resulting from excess inventory of completed solar power modules. We continue to invest with confidence in the people, products and manufacturing resources that will help drive our future sales growth and profitability improvements.”

Net sales for the three months ended June 30, 2011, were $594 million, a 9 percent increase over net sales of $543 million in the second quarter of 2010. Sales increased in all segments except Pharmaceuticals where a slight sales decline of $0.2 million was recorded. Increased sales of precious metals, resulting primarily from higher prices of silver, contributed $25 million to the growth of sales during the quarter. Changes in product pricing and product mix accounted for approximately 11 percentage points of the overall growth in sales. Changes in foreign currency exchange rates contributed an additional 5 percentage points of sales growth. A decline in sales volume, compared with the prior-year quarter, reduced sales growth by 7 percentage points. The reduction in sales volume includes the impact of products the Company no longer manufactures in 2011 due to strategic product portfolio changes resulting from restructuring and business sales.

Gross profit was $114 million, or 19.3 percent of sales, during the 2011 second quarter, compared with $122 million, or 22.5 percent of sales, during the second quarter of 2010. Excluding charges, gross profit was 24.3 percent of sales excluding precious metals in the 2011 second quarter, compared with 27.8 percent in the prior-year quarter. The decline in gross profit dollars was primarily driven by reduced sales volume of conductive pastes sold to manufacturers of solar cells. Demand for these pastes declined due to excess customer inventory of completed solar power modules, particularly in the European solar market. Gross profit as a percent of net sales also declined compared with the prior-year quarter, because of increased sales of precious metals. The cost of precious metals is passed through to customers with minimal contribution to gross profit. During the 2011 second quarter, gross profit was reduced by charges of $1.3 million, primarily related to residual costs at closed manufacturing sites involved in restructuring actions. In the second quarter of 2010, gross profit was reduced by charges of $2.5 million primarily due to accelerated depreciation and severance costs resulting from manufacturing restructuring actions.

Selling, general and administrative (“SG&A”) expenses were $74 million, or 12.4 percent of net sales, during the 2011 second quarter. SG&A expenses in the 2010 second quarter were $70 million, or 12.9 percent of sales. The increased SG&A spending included expenses associated with an initiative to streamline and standardize business processes and improve management information systems. Changes in foreign currency exchange rates also contributed to the increased SG&A expenses during the quarter. SG&A expenses during the 2011 second quarter included charges of $1.4 million, primarily due to expenses at sites closed during manufacturing rationalization actions. SG&A expenses during the second quarter of 2010 included charges of $5.6 million primarily related to expense reduction actions, manufacturing rationalization initiatives and corporate development activities.

Restructuring and impairment charges were $1.5 million during the 2011 second quarter compared with $21.2 million in the prior-year quarter. The decline reflects the substantial reduction in restructuring activities as the Company completes the final actions related to its multi-year manufacturing rationalization that was initiated in 2006.

Interest expense declined to $7.4 million in the 2011 second quarter, compared with $13.8 million in the 2010 second quarter. The decline was primarily due to reduced borrowing levels and reduced amortization of debt issuance costs.

Net income during the 2011 second quarter was $19.6 million, or $0.22 per diluted share, compared with income of $7.6 million, or $0.08 per diluted share, during the second quarter of 2010. Adjusted net income, excluding charges, was $23.8 million, or $0.27 per diluted share during the 2011 second quarter, compared with adjusted net income of $30.1 million, or $0.35 per diluted share, in the 2010 second quarter.

Cash flow from operations was $7.8 million during the second quarter compared with $84.2 million during the 2010 second quarter. Cash flow from operations during the 2010 second quarter included $51.1 million from the return of precious metals deposits. During the quarter, working capital increased, primarily as a result of higher accounts receivable and lower accounts payable. Receivables days increased principally due to a shift in the Company’s mix of sales by product and by region. Accounts payable days have been negatively impacted by shorter payment terms demanded by suppliers of certain raw materials that have been in high demand.

2011 Outlook

The Company currently expects net sales to grow between 9 and 12 percent in 2011, to between $2.30 billion and $2.35 billion. While this expectation for total net sales is not changed from the previous guidance, the Company has reduced its expectations for sales of conductive metal pastes in the Electronic Materials segment during the second half of 2011. Revised forecasts for foreign currency exchange rates are expected to offset the reduction in metal paste sales.

The Company’s current sales expectations for solar conductive pastes are the result of reduced demand forecasts from solar cell manufacturers. Increased customer inventory of completed solar cell power modules, primarily related to the European market, has resulted in reduced solar cell production volume. Installations of solar power modules are expected to increase in the 2011 second half, and this is expected to lead to recovery in orders for the Company’s solar paste products once excess module inventories are depleted. A return to growth in solar cell manufacturing is dependent on a number of factors that are difficult to forecast, including solar power module pricing, possible changes in government incentives for solar installations, interest rate movements, and changes in the price of silver.

Adjusted earnings per share for 2011, excluding special charges, are expected to be $1.08 to $1.18, down from the Company’s previous guidance of $1.28 to $1.35. The revised outlook is primarily the result of reduced expectations for sales of conductive pastes to manufacturers of solar cells. The current outlook assumes that demand from the Company’s customers for solar pastes will remain at or near the current level during the third quarter of 2011 and will begin to improve more significantly in the fourth quarter.

Current assumptions in the Company’s planning for 2011 include:

Ferro expects to update its annual sales estimates and adjusted earnings per share estimates in quarterly earnings releases during the remainder of 2011 to reflect regional economic conditions and updated customer demand forecasts.

Non-GAAP Measures

Adjusted earnings per share is equal to income (loss) before taxes, plus restructuring and impairment charges, charges related to debt refinancing and other special charges, adjusted for a normalized tax rate that is consistent with the Company’s expected future effective tax rate excluding discrete items, and divided by the average number of common shares outstanding. The Company’s expected future effective tax rate is lower than the U.S. statutory rate because of expected earnings in foreign jurisdictions with lower tax rates.

Adjusted earnings per share is a financial measure not required by, or presented in accordance with, accounting principles generally accepted in the United States (U.S. GAAP). The measure is presented here because it provides additional information in a manner that is commonly used by investors and reported by third-party analysts. The amount and timing of restructuring, impairment and other special charges in future periods are difficult to forecast due to the number of restructuring and other cost-reduction projects currently underway within the Company and the uncertainty of factors that determine future charges, which make a detailed reconciliation to the most directly comparable U.S. GAAP measures impractical.

Conference Call

The Company will host a conference call to discuss its 2011 second-quarter financial results, its outlook for general business conditions and its current outlook for 2011 on Tuesday, August 2, 2011, at 10:00 a.m. Eastern time. To participate in the call, dial 800-734-8507 if calling from the United States or Canada, or dial 212-231-2917 if calling from outside North America. Please call approximately 10 minutes before the conference call is scheduled to begin.

An audio replay of the call will be available from noon Eastern time on August 2 through noon Eastern time on August 9. To access the replay, dial 800-633-8284 if calling from the United States or Canada, or dial 402-977-9140 if calling from outside North America. Use the program ID #21532988 to access the audio replay.

The conference call also will be broadcast live over the Internet and will be available for replay through September 30, 2011. The live broadcast and replay can be accessed through the Investor Information portion of the Company’s Web site at www.ferro.com. A podcast of the conference call will also be available on the Company’s Web site.

About Ferro Corporation

Ferro Corporation (http://www.ferro.com) is a leading global supplier of technology-based performance materials for manufacturers. Ferro materials enhance the performance of products in a variety of end markets, including electronics, solar energy, telecommunications, pharmaceuticals, building and renovation, appliances, automotive, household furnishings, and industrial products.

Headquartered in Cleveland, Ohio, the Company has approximately 5,000 employees globally and reported 2010 sales of $2.1 billion.

Cautionary Note on Forward-Looking Statements

Certain statements in this press release may constitute “forward-looking statements” within the meaning of Federal securities laws. These statements are subject to a variety of uncertainties, unknown risks and other factors concerning the Company’s operations and business environment. Important factors that could cause actual results to differ materially from those suggested by these forward-looking statements and that could adversely affect the Company’s future financial performance include the following:

The risks and uncertainties identified above are not the only risks the Company faces. Additional risks and uncertainties not presently known to the Company or that it currently believes to be immaterial also may adversely affect the Company. Should any known or unknown risks and uncertainties develop into actual events, these developments could have material adverse effects on our business, financial condition and results of operations.

This release contains time-sensitive information that reflects management’s best analysis only as of the date of this release. The Company does not undertake any obligation to publicly update or revise any forward-looking statements to reflect future events, information or circumstances that arise after the date of this release. Additional information regarding these risks can be found in our Annual Report on Form 10-K for the period ended December 31, 2010.

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INVESTOR CONTACT:
David Longfellow
Director, Investor Relations, Ferro Corporation
Phone: 216-875-7155
E-mail: longfellowd@ferro.com

MEDIA CONTACT:
Mary Abood
Director, Corporate Communications, Ferro Corporation
Phone: 216-875-6202
E-mail: aboodm@ferro.com

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Condensed Consolidated Statements of Income (Unaudited)

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Ferro Corporation and Subsidiaries
Segment Net Sales and Segment Income (Unaudited)

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Ferro Corporation and Subsidiaries
Condensed Consolidated Balance Sheets

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Ferro Corporation and Subsidiaries
Condensed Consolidated Statements of Cash Flows (Unaudited)

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Ferro Corporation and Subsidiaries
Supplemental Information

Reconciliation of Adjusted Earnings to Reported Earnings
for the Three Months Ended June 30 (Unaudited)

¹ 2011 tax rate of 32%, consistent with the Company’s expectation for future effective tax rates, excluding discrete items. The Company’s expected future effective tax rate is lower than the U.S. statutory rate because of expected earnings in foreign jurisdictions with lower tax rates.

² 2010 tax rate of 36%, consistent with the Company’s 2010 expectation for future effective tax rates, excluding discrete items.

It should be noted that adjusted earnings is a financial measure not required by, or presented in accordance with, accounting principles generally accepted in the United States (U.S. GAAP). The adjusted earnings presented here exclude certain special charges including restructuring charges and asset impairments, charges related to debt refinancing, and other charges that are not related to production of products for sale. We believe this data provides investors with additional information on the underlying operations of the business and enables period-to-period comparability of financial performance. In addition, these measures are used in the calculation of certain incentive compensation programs for selected employees.

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Ferro Corporation and Subsidiaries
Supplemental Information

Reconciliation of Adjusted Earnings to Reported Earnings
for the Six Months Ended June 30 (Unaudited)

¹ 2011 tax rate of 32%, consistent with the Company’s expectation for future effective tax rates, excluding discrete items. The Company’s expected future effective tax rate is lower than the U.S. statutory rate because of expected earnings in foreign jurisdictions with lower tax rates.

² 2010 tax rate of 36%, consistent with the Company’s 2010 expectation for future effective tax rates, excluding discrete items.

It should be noted that adjusted earnings is a financial measure not required by, or presented in accordance with, accounting principles generally accepted in the United States (U.S. GAAP). The adjusted earnings presented here exclude certain special charges including restructuring charges and asset impairments, charges related to debt refinancing, and other charges that are not related to production of products for sale. We believe this data provides investors with additional information on the underlying operations of the business and enables period-to-period comparability of financial performance. In addition, these measures are used in the calculation of certain incentive compensation programs for selected employees.

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Ferro Corporation and Subsidiaries
Supplemental Information

Segment Net Sales Excluding Precious Metals and
Reconciliation of Sales Excluding Precious Metals to Net Sales (Unaudited)

It should be noted that segment sales excluding precious metals is a financial measure not required by, or presented in accordance with, accounting principles generally accepted in the United States (U.S. GAAP). The sales are presented here to exclude the impact of volatile precious metal raw material costs. The precious metal raw material costs are generally passed through directly to customers with minimal margin. We believe this data provides investors with additional information on the underlying operations of the business and enables period-to-period comparability of financial performance. In addition, these measures are used in the calculation of certain incentive compensation programs for selected employees.

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