W.R. Grace third-quarter net income down to $75.5 million; sales fall

By Caroline Salls

Pittsburgh, Oct. 24 - W. R. Grace & Co. reported third-quarter net income of $75.5 million, or $0.99 per diluted share, compared with net income of $81.3 million, or $1.07 per diluted share, for the same period of 2011, according to a company news release.

The company said adjusted earnings per share was $1.04 per diluted share for the third quarter of this year, down from $1.16 per diluted share for the quarter ended Sept. 30, 2011.

Grace's net income for the nine months ended Sep. 30 was $205.7 million, or $2.70 per diluted share, compared with $211.3 million, or $2.80 per diluted share for the nine months ended Sept. 30, 2011.

Adjusted EPS was $3.07 per diluted share for the first nine months of 2012, compared with $3.06 per diluted share for the same period of 2011.

"Our results were in line with our plan," chairman and chief executive officer Fred Festa said in the release.

"All three of our operating segments improved base pricing and increased sales volumes as strong growth in the emerging regions offset weaker demand in the advanced economies.

"Our disciplined approach to productivity, cost control and working capital improved earnings and cash flow in the quarter."

Sales, profit results

According to the release, third-quarter sales of $776.6 million declined 10.1% compared with the third quarter of 2011, as improved base pricing and higher sales volumes were offset by lower rare earth surcharges and unfavorable currency translation.

Grace said sales in emerging regions represented 39.1% of sales and grew 16.8% compared with the third quarter of last year. Acquisitions contributed $7.2 million to sales in the quarter, while divestitures decreased sales by $5.3 million.

The company said gross profit of $284.8 million declined 10% from the third quarter of 2011 as improved base pricing and higher sales volumes were more than offset by unfavorable currency translation, unfavorable product mix and the impact of lower rare earth costs and volumes on capitalized inventory values.

Sales for the nine months ended Sept. 30 decreased 1.2% to $2.36 billion, the release said.

W.R. Grace said sales in emerging regions represented 36.3% of sales and grew 14.8% compared with the first nine months of 2011.

Gross profit of $866 million reflected an 0.8% decrease compared with the 2011 period.

2012 outlook

As of Oct. 24, Grace said it updated its outlook for 2012 adjusted EBIT to the range of $510 million to $520 million, an increase of 6% to 9% compared with 2011 adjusted EBIT of $478.6 million.

The company said it expects 2012 adjusted EBITDA in the range of $630 million to $640 million.

Grace's 2012 outlook assumes $3.15 billion in consolidated sales, capital expenditures of $140 million and 77 million diluted shares outstanding at the end of the year.

W.R. Grace, a Columbia, Md.-based specialty chemicals company, filed for bankruptcy on April 2, 2001 in the U.S. Bankruptcy Court for the District of Delaware. Its Chapter 11 case number is 01-01139.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.