EX-99.1

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Full-year net income from continuing operations increases to $0.45 per diluted share

CLEVELAND, Ohio – March 1, 2007 – Ferro Corporation (NYSE: FOE) announced today that sales for the year ended December 31, 2006 were a record $2.04 billion, up 8.5 percent from 2005. Sales for the fourth quarter were $497 million, an increase of 8.6 percent from the fourth quarter of 2005.

Income from continuing operations for 2006 was $20.6 million, or $0.45 per diluted share, compared with $17.1 million, or $0.37 per share, in 2005. In 2006, operating income included net pre-tax expenses of $34.9 million primarily related to previously announced manufacturing rationalization activities and costs associated with an accounting investigation and restatement. In 2005, operating income was reduced by pre-tax expenses of $14.1 million, primarily related to expenses from restructuring and the accounting investigation and restatement.

“We delivered substantial growth in sales, and a strong 29 percent increase in our total segment income in 2006,” said Chairman, President and Chief Executive Officer James Kirsch. “We have initiated important restructuring programs that will provide significant future cost savings. And with a new senior team in place, we are committed to delivering sustained global growth and improved profitability in 2007 and beyond.”

Sales growth in 2006 was a result of strong performances in Ferro’s Electronic Materials, Performance Coatings and Color and Glass Performance Materials segments. Sales in the Polymer Additives and Specialty Plastics segments were negatively impacted by weakness in the U.S. residential construction and automotive markets in the second half of the year.

Increased prices, including higher precious metal prices, and improved product mix across all of the Company’s businesses, were the primary drivers of sales growth for 2006. Overall volume declined slightly as volume improvements in Electronic Materials and Performance Coatings were offset by declines in Specialty Plastics and Polymer Additives.

Gross margins were 20.3 percent of sales for the year, compared with 20.4 percent of sales in 2005. The Company’s 2006 gross profit was reduced by $4.6 million of costs related to manufacturing rationalization activities. Gross margins were also negatively impacted by increased precious metal sales, compared to 2005. Precious metals costs are largely passed through to customers with minimal margin contribution.

Selling, general and administrative (SG&A) expense was $305.2 million in 2006, or 15.0 percent of sales. Included in the 2006 SG&A expense were $8.2 million in charges, primarily related to the accounting investigation and restatement. SG&A expense in 2005 was $310.1 million, or 16.5 percent of sales, including charges of $10.5 million related to the accounting investigation and restatement.

Total segment income for 2006 was $151.8 million, up 29 percent from the prior-year level of $118.0 million. The increase reflected higher income from all segments except Polymer Additives.

Interest expense increased in 2006, reflecting higher borrowing levels and higher interest rates on funds borrowed. Interest expense for 2006 was $64.4 million, compared with $46.9 million in 2005. The 2006 interest expense included a $2.5 million write-down of previously unamortized fees and discounts associated with the Company’s prior credit facility and debentures that were accelerated. The interest rate on the Company’s term loans and revolving credit borrowings declined by 50 basis points as a result of becoming current on its financial filings in December 2006.

During 2006, the Company’s effective tax rate declined to 19.6 percent from 28.8 percent in 2005, largely as a result of a lower valuation reserve against certain deferred tax assets and reduced tax rates in certain foreign jurisdictions. These benefits were partially offset by a higher reserve for possible future U.S. taxes on accumulated foreign earnings that may be repatriated to the U.S. The Company expects its effective tax rate in 2007 will be approximately 33 percent.

Total debt at the end of 2006 was $592.4 million, an increase of $38.7 million from the end of 2005. In addition, the Company had $60.6 million in its accounts receivable securitization program as of December 31, 2006, compared with $1.0 million at the end of 2005. An increase in working capital, including deposit requirements related to the Company’s precious metal consignments, was a primary driver of the higher borrowing. These deposit requirements were $70.1 million at the end of 2006, an increase from $19.0 million at the end of 2005. The year-end deposits were down $23.2 million from September 30, 2006, and the Company expects to further reduce these deposits in the first half of 2007.

Sales of $497.3 million for the fourth quarter were led by year-over-year growth in Performance Coatings, Electronic Materials and Color and Glass Performance Materials. Sales in Polymer Additives and Specialty Plastics were lower due to slowing in the U.S. residential construction and automotive markets.

The fourth-quarter revenue increase of 8.6 percent was primarily due to increases in prices, including higher precious metal prices, improved product mix and favorable foreign exchange rates, compared with the fourth quarter of 2005. Favorable foreign currency exchange rates added less than 4 percentage points to the revenue growth rate. Lower volumes reduced sales growth by less than 2 percentage points.

Gross margin for the fourth quarter was 19.6 percent of sales, unchanged from the fourth quarter of 2005. Gross profit was reduced by $3.0 million during the 2006 fourth quarter, as a result of costs related to the Company’s manufacturing rationalization. Higher precious metal prices, which are generally passed through to customers with minimal mark-up, also had a negative impact on gross margin percentage for the quarter compared with the prior-year period.

Selling, general and administrative expense for the fourth quarter was $73.3 million, or 14.7 percent of sales. Included in quarterly SG&A expense were $1.6 million in charges, primarily related to divestment activities and severance. SG&A expense was $75.7 million, or 16.5 percent of sales, in the fourth quarter of 2005. Charges of $1.7 million, related to the accounting investigation and restatement, were included in fourth quarter 2005 SG&A expense.

Total segment income for the fourth quarter was $33.0 million, a 40-percent increase over the fourth quarter of 2005.

During the fourth quarter, net income was reduced as a result of net pre-tax charges of $23.1 million, primarily related to manufacturing rationalization activities in the Company’s European Inorganics business and the Electronic Materials business in the United States. Partially offsetting these charges was a benefit related to a litigation settlement.

Sales for the first quarter of 2007 are expected to be approximately $500 million to $525 million, reflecting continued growth across multiple business segments. Sequential growth over fourth-quarter 2006 sales is expected to be broadly based across the Company’s businesses.

The Company expects higher interest expense and smaller losses from forward supply contracts in the 2007 first quarter, compared with the prior-year period. Earnings for the first quarter are expected to be between $0.17 and $0.22 per share. This estimate includes expected charges of approximately 5 cents per share, primarily from ongoing manufacturing rationalization activities. The Company reported income from continuing operations of $0.19 per share in the first quarter of 2006.

The Company will host a conference call to discuss its financial results and general business outlook on Friday, March 2, 2007 at 8:00 a.m. Eastern time. If you wish to participate in the call, dial 800-779-0712 if calling from the United States or Canada, or dial 210-839-8501 if calling from outside North America. When prompted, refer to the pass code, FOE, and the conference leader, David Longfellow. 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 March 2 through 9 p.m. Eastern time on March 9. To access the replay, dial 800-945-5759 if calling from the United States or Canada, or dial 203-369-3502 if calling from outside North America.

The conference call also will be broadcast live over the Internet and will be available for replay through the end of the second quarter. The live broadcast and replay can be accessed through the Investor Information portion of the Company’s Web site at www.ferro.com.

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, telecommunications, pharmaceuticals, building and renovation, appliances, automotive, household furnishings, and industrial products.

Headquartered in Cleveland, Ohio, the Company has approximately 6,700 employees globally and reported 2006 sales of $2.0 billion.

Certain statements in this Ferro 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, which are difficult to predict and often beyond the control of the Company. 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:

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We depend on reliable sources of raw materials and other supplies at a reasonable cost, but availability of such materials and supplies could be interrupted and/or the prices charged for them could escalate.

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The markets in which we participate are highly competitive and subject to intense price competition.

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We are striving to improve operating margins through sales growth, price increases, productivity gains and improved purchasing techniques, but it may not be successful in achieving the desired improvements.

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We are engaged in restructuring programs to improve manufacturing efficiency and reduce costs. If we are not successful in the execution of our restructuring programs we will not realize the expected cost savings.

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Our products are sold into industries where demand is unpredictable, cyclical or heavily influenced by consumer spending.

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The global scope of our operations exposes us to risks related to currency conversion and changing economic, social and political conditions around the world.

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We have a growing presence in the Asia/Pacific region where it can be difficult for an American company to compete lawfully with local competitors.

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Regulatory authorities in the U.S., European Union and elsewhere are taking a much more aggressive approach to regulating hazardous materials and those regulations could affect sales of our products.

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Our operations are subject to stringent environmental, health and safety regulations and compliance with those regulations could require us to make significant investments.

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We depend on external financial resources and any interruption in access to capital markets or borrowings could adversely affect our financial condition.

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Interest rates on some of our external borrowings are variable and our borrowing cost could be affected adversely by interest rate increases.

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Many of our assets are encumbered by liens that have been granted to lenders and those liens affect our flexibility in making timely dispositions of property and businesses.

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We are subject to a number of restrictive covenants in its credit facilities and those covenants could affect our flexibility in funding strategic initiatives.

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We have significant deferred tax assets and our ability to utilize these assets will depend on our future performance.

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We are a defendant in several lawsuits that could have an adverse effect on our financial condition and/or financial performance, unless they are successfully resolved.

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Our businesses depend of a continuous stream of new products and failure to introduce new products could affect our sales and profitability.

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Employee benefit costs, especially post-retirement costs, constitute a significant element of our annual expenses, and funding these costs could adversely affect our financial condition.

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We are exposed to risks associated with acts of God, terrorists and others, as well as fires, explosions, wars, riots, accidents, embargos, natural disasters, strikes and other work stoppages, quarantines and other governmental actions, and other events or circumstances that are beyond the Company’s reasonable control.

Additional information regarding these risk factors can be found in the Company’s Annual Report on Form 10-K for the period ended December 31, 2006.

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 the Company’s 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.

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

Ferro Corporation and Consolidated Subsidiaries
Condensed Consolidated Statements of Income


	Three Months Ended December 31,						Year Ended December 31,
(Dollars in thousands, except per share amounts)	2006			2005			2006			2005

Net Sales	$	497,307		$	457,889		$	2,041,525		$	1,882,305

Cost of Sales		399,962			367,935			1,626,733			1,498,504

Gross Profit		97,345			89,954			414,792			383,801

Selling, General and Administrative Expenses		73,256			75,675			305,211			310,056
Restructuring Charges		23,146			(1,576	)		23,146			3,677

Other Expense (Income):
Interest Expense		16,272			12,057			64,427			46,919
Other Expense (Income), Net		(4,615	)		3,257			(3,580	)		(923	)

Income (Loss) Before Taxes		(10,714	)		541			25,588			24,072
Income Tax Expense (Benefit)		(6,917	)		(761	)		5,026			6,928


Income (Loss) from Continuing Operations		(3,797	)		1,302			20,562			17,144

Loss On Disposal of Discontinued Operations, net		67			317			472			868


Net Income (Loss)		(3,864	)		985			20,090			16,276

Dividends on Preferred Stock		(297	)		(361	)		(1,252	)		(1,490	)


Net Income (Loss) Available to Common Shareholders	$	(4,161	)	$	624		$	18,838		$	14,786



Per Common Share Data:
Basic Earnings (Loss)
From Continuing Operations	$	(0.10	)	$	0.02		$	0.45		$	0.37
From Discontinued Operations		—			(0.01	)		(0.01	)		(0.02	)

	$	(0.10	)	$	0.01		$	0.44		$	0.35

Diluted Earnings (Loss)
From Continuing Operations	$	(0.10	)	$	0.02		$	0.45		$	0.37
From Discontinued Operations		—			(0.01	)		(0.01	)		(0.02	)

	$	(0.10	)	$	0.01		$	0.44		$	0.35


Dividends	$	0.145		$	0.145		$	0.58		$	0.58



Shares Outstanding:
Basic		42,808,264			42,333,902			42,393,974			42,308,772
Diluted		42,454,579			42,345,913			42,422,119			42,344,984
End of Period		42,865,471			42,353,266			42,865,471			42,353,266

Ferro Corporation and Consolidated Subsidiaries
Segment Sales and Segment Income


(Dollars in thousands)	Three Months Ended December 31,						Year Ended December 31,
	2006			2005			2006			2005
Segment Sales
Performance Coatings	$	141,370		$	121,498		$	538,385		$	488,467
Electronic Materials		108,970			91,917			444,463			355,676
Color and Glass Perf. Materials		95,025			82,390			387,540			359,613
Polymer Additives		68,443			71,405			313,500			300,563
Specialty Plastics		61,782			67,386			271,307			279,119
Other		21,717			23,293			86,330			98,867

Total	$	497,307		$	457,889		$	2,041,525		$	1,882,305


Segment Income
Performance Coatings	$	10,508		$	8,167		$	42,094		$	31,600
Electronic Materials		9,259			4,177			35,129			13,463
Color and Glass Perf. Materials		10,297			6,639			43,345			38,879
Polymer Additives		(972	)		2,736			10,986			18,533
Specialty Plastics		2,264			2,711			14,535			13,387
Other		1,672			(769	)		5,674			2,175

Total Segment Income		33,028			23,661			151,763			118,037
Unallocated expenses		(32,085	)		(7,806	)		(65,328	)		(47,969	)
Interest expense		(16,272	)		(12,057	)		(64,427	)		(46,919	)
Interest earned		1,725			110			4,466			538
Foreign currency		(334	)		(245	)		(1,040	)		(1,284	)
Gain on sale of businesses		414			321			67			69
Miscellaneous, net		2,810			(3,443	)		87			1,600

Income (loss) before taxes from continuing operations	$	(10,714	)	$	541		$	25,588		$	24,072

Ferro Corporation and Consolidated Subsidiaries
Condensed Consolidated Balance Sheets


(Dollars in thousands)	Year Ended December 31,
	2006		2005
Assets

Current Assets:
Cash and Cash Equivalents	$	16,985	$	17,413
Accounts and Trade Notes Receivable, net		220,899		182,390
Inventories		254,513		215,257
Other Current Assets		130,208		195,659


Total Current Assets		622,605		610,719

Property, Plant & Equipment, net		526,802		531,139
Intangibles, net		406,340		410,666
Miscellaneous Other Assets		177,190		116,020

Total Assets	$	1,732,937	$	1,668,544



Liabilities and Shareholders’ Equity

Current Liabilities:
Notes and Loans Payable	$	10,764	$	7,555
Accounts Payable		237,018		236,282
Other Current Liabilities		135,102		123,047


Total Current Liabilities		382,884		366,884

Long-Term Debt, less current portion		581,654		546,168
Other Non-Current Liabilities		227,063		266,933

Total Liabilities		1,191,601		1,179,985

Series A Convertible Preferred Stock		16,787		20,468

Shareholders’ Equity		524,549		468,091

Total Liabilities and Shareholders’ Equity	$	1,732,937	$	1,668,544

Ferro Corporation and Consolidated Subsidiaries
Condensed Consolidated Statements of Cash Flows


	Year Ended December 31,
(Dollars in thousands)	2006			2005
Cash flows from Operating Activities
Net Income	$	20,090		$	16,276
Depreciation and amortization		79,501			74,823
Restructuring charges		23,146			3,677
Precious metal deposits		(51,073	)		(11,100	)
Changes in other current assets and liabilities, net		27,689			(29,226	)
Other adjustments, net		(27,723	)		(31,283	)

Net cash provided by continuing operations		71,630			23,167
Net cash used for discontinued operations		(686	)		(1,786	)

Net cash provided by operating activities		70,944			21,381
Cash flows from investing activities
Capital expenditures for plant and equipment		(50,615	)		(42,825	)
Proceeds from sale of assets and businesses		5,130			9,287
Cash investment in Ferro Finance Corp.		(25,000	)		—
Other investing activities		1,767			(2,276	)

Net cash used for investing activities		(68,718	)		(35,814	)
Cash flow from financing activities
Net borrowings under term loans and revolving credit facilities		193,187			46,266
Extinguishment of debentures		(155,000	)		—
Debt issue costs paid		(16,234	)		—
Cash dividends paid		(25,901	)		(25,937	)
Other financing activities		913			(2,192	)

Net cash (used for) provided by financing activities		(3,035	)		18,137
Effect of exchange rate changes on cash		381			(230	)

(Decrease) increase in cash and cash equivalents		(428	)		3,474
Cash and cash equivalents at beginning of period		17,413			13,939

Cash and cash equivalents at end of period	$	16,985		$	17,413


Cash paid during the period for:
Interest	$	62,980		$	44,092
Income taxes	$	10,687		$	9,487

Ferro Corporation and Consolidated Subsidiaries
Supplemental Information

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


(Dollars in thousands)	Three Months Ended December 31,				Year Ended December 31,
	2006		2005		2006		2005
Segment Sales excluding Precious Metals
Performance Coatings	$	141,370	$	121,498	$	538,385	$	488,467
Electronic Materials		62,838		58,104		262,949		229,950
Color and Glass Perf. Materials		85,146		79,834		353,789		351,166
Polymer Additives		68,443		71,405		313,500		300,563
Specialty Plastics		61,782		67,386		271,307		279,119
Other		21,717		23,293		86,330		98,867

Total Sales, Excluding Precious Metals		441,296		421,520		1,826,260		1,748,132

Precious Metals Sales		56,011		36,369		215,265		134,173
Net Sales	$	497,307	$	457,889	$	2,041,525	$	1,882,305

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 to 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.