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Grace Reports Fourth Quarter and Full-Year 2014 Results
Reports 4Q14 Adjusted EPS of $1.37; Announces Additional $500 Million Share Repurchase Program
4Q14 sales increased 4% to $804.1 million, up 7% currency adjusted
4Q14 Adjusted EBIT increased 21% to $167.9 million, up 27% currency adjusted
2014 sales increased 6% to $3.2 billion, up 7% currency adjusted
2014 Adjusted EBIT increased 14% to $626.2 million, up 16% currency adjusted
2014 Adjusted Free Cash Flow of $452.2 million
2014 cash flow includes a favorable impact of $142.5 million, or $1.87 per share due to Grace's low cash tax rate
Columbia, MD - February 5, 2015 - W. R. Grace & Co. (NYSE: GRA) announced fourth quarter net income of $15.5 million, or $0.21 per diluted share. Net income for the prior-year quarter was $29.7 million, or $0.38 per diluted share. Adjusted EBIT increased 21% to $167.9 million, and fourth quarter Adjusted EPS increased 26% to $1.37 per diluted share.
Net income for the year ended December 31, 2014, was $276.3 million, or $3.63 per diluted share, compared with $256.1 million, or $3.30 per diluted share for the prior year. Adjusted EBIT increased 14% to $626.2 million, and full-year Adjusted EPS increased 1% to $4.43 per diluted share.
“We finished 2014 strong,” said Fred Festa, Grace’s Chairman and Chief Executive Officer. “Catalysts Technologies and Construction Products both showed solid fundamentals with good customer demand and strong margins. Materials Technologies saw demand growth in North America and Asia, but weaker demand in Europe. Commodity and currency markets have shifted significantly in the last three months, creating challenges as well as opportunities. We expect that our flexible, global manufacturing footprint, robust technology portfolio and close customer relationships will enable us to adapt quickly and deliver solid business growth in 2015.”
Fourth Quarter Results
Fourth quarter net sales of $804.1 million increased 3.5% compared with the prior-year quarter, due to higher sales volumes (+5.4%) and improved pricing (+1.4%), partially offset by unfavorable currency translation (-3.3%). Acquisitions contributed 2.4% to sales growth.
Segment Gross Margin (which excludes pension costs) of 40.4% increased 390 basis points compared with the prior-year quarter.
Adjusted EBIT of $167.9 million increased 21.1% from the prior-year quarter primarily due to an increase in segment operating income, including the benefit of acquisitions. Adjusted EBIT margin of 20.9% increased 310 basis points compared with the prior-year quarter.
Adjusted EBIT Return On Invested Capital was 31.2% on a trailing four-quarter basis, compared to 27.3% as of December 31, 2013.
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The following information was filed by W R Grace Co (GRA) on Thursday, February 5, 2015 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.