Grace Reports Fourth Quarter 2013 Adjusted EPS of $1.09
and Provides 2014 Earnings Outlook
Adjusted EBIT of $139 million including UNIPOL acquisition costs
Full-year Adjusted Free Cash Flow improved to $430 million
2014 Adjusted EBIT outlook of $620 to $660 million and Adjusted EBITDA outlook of $765 million to $805 million
$500 million share repurchase program announced
Columbia, MD - February 5, 2014 - W. R. Grace & Co. (NYSE: GRA) announced fourth quarter net income of $29.7 million, or $0.38 per diluted share, compared with a net loss for the prior-year quarter of $184.3 million, or $2.44 per diluted share. Both quarters included charges related to the company’s asbestos-related liability and bankruptcy proceedings. Adjusted EPS for the 2013 fourth quarter was $1.09 per diluted share compared with $1.21 per diluted share for the prior-year quarter.
Net income for the year ended December 31, 2013, was $256.1 million, or $3.30 per diluted share, compared with $40.0 million, or $0.52 per diluted share for the prior year. Adjusted EPS for the year was $4.39 per diluted share compared with $4.53 per diluted share for the prior year.
“Earnings finished as expected with strong results from Materials Technologies and Construction Products,” said Fred Festa, Grace's Chairman and Chief Executive Officer. “Catalysts Technologies increased sales and earnings sequentially and completed the strategically important UNIPOL acquisition. We settled the remaining appeal in our Chapter 11 proceedings, secured our exit financing, and emerged from bankruptcy on February 3. I’m excited about the improved strategic position of our company and looking forward to solid earnings growth in 2014.”
Fourth Quarter Results
Fourth quarter sales of $776.7 million declined 2.6 percent compared with the prior-year quarter as acquisition growth (+1.3 percent) and improved base pricing (+0.4 percent) were offset by lower sales volumes (-2.5 percent), lower rare earth surcharges (-1.7 percent) and unfavorable currency translation (-0.1 percent).
Adjusted EBIT of $138.6 million decreased 3.7 percent compared with $143.9 million in the prior-year quarter. Lower Catalysts Technologies segment operating income more than offset higher segment operating income in Materials Technologies and Construction Products and lower corporate costs. Adjusted EBIT margin decreased to 17.8 percent compared with 18.0 percent in the prior-year quarter. The UNIPOL® Polypropylene Process Technology Licensing and Catalysts Business ("UNIPOL") acquired in December broke even as expected before acquisition costs of approximately $8 million or approximately 1 percent of sales.
Adjusted EBIT Return On Invested Capital was 27.4 percent on a trailing four-quarter basis, compared with 38.9 percent for the prior year. The decrease in Adjusted EBIT Return On Invested Capital was due to lower segment operating income in Catalysts Technologies and higher invested capital related to the UNIPOL acquisition.
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The following information was filed by W R Grace Co (GRA) on Wednesday, February 5, 2014 as an 8K 2.02 statement, which is an earnings press release pertaining to results of operations and financial condition. It may be helpful to assess the quality of management by comparing the information in the press release to the information in the accompanying 10-K Annual Report statement of earnings and operation as management may choose to highlight particular information in the press release.
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Ticker: GRA CIK: 1045309 Form Type:10-K Annual Report Accession Number: 0001045309-14-000032 Submitted to the SEC: Thu Feb 27 2014 2:14:43 PM EST Accepted by the SEC: Thu Feb 27 2014 Period: Tuesday, December 31, 2013 Industry: Chemicals And Allied Products