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Grace Reports Fourth Quarter and Full-Year 2015 Results
Adjusted EPS of $1.40; Strong Margin and Cash Flow Performance
4Q15 Adjusted EBIT of $171.3 million up 10% at constant currency
2015 Adjusted EBIT of $618.5 million up 8% at constant currency
2015 Adjusted Free Cash Flow of $437.4 million
2015 cash flow includes a favorable impact of $118.3 million, equivalent to $1.63 per share, due to Grace's low cash tax rate
Completed separation of Grace into two industry-leading public companies
COLUMBIA, MD - February 11, 2016 - W. R. Grace & Co. (NYSE: GRA) announced fourth quarter net income of $20.3 million, or $0.29 per diluted share. Net income for the prior-year quarter was $15.5 million, or $0.21 per diluted share. Adjusted EBIT increased 2% to $171.3 million, and fourth quarter Adjusted EPS increased 2% to $1.40 per diluted share.
Net income for the year ended December 31, 2015, was $144.2 million, or $1.99 per diluted share, compared with $276.3 million, or $3.63 per diluted share for the prior year. Adjusted EBIT decreased 1% to $618.5 million, and full-year Adjusted EPS increased 8% to $4.78 per diluted share.
"We are excited and energized by the opportunities ahead," said Fred Festa, Grace’s Chairman and Chief Executive Officer. "With the completion of our separation into two industry-leading public companies, we enter 2016 as a lean, focused and strategically nimble company. We are focused on our unique growth opportunities, maintaining our ROIC discipline and improving productivity."
Fourth Quarter Results
Fourth quarter net sales of $758.7 million decreased 5.6% compared with the prior-year quarter due to unfavorable currency translation (-6.3%), the effect of the 2015 third quarter devaluation of our Venezuelan operations (-1.5%), and lower pricing (-0.4%), partially offset by higher sales volumes (+2.6%).
Adjusted EBIT of $171.3 million increased 2.0% from the prior-year quarter, and increased approximately 10% at constant currency. Adjusted EBIT margin of 22.6% increased 170 basis points compared with the prior-year quarter.
Adjusted EBIT Return On Invested Capital was 32.3% on a trailing four-quarter basis, compared with 31.2% as of December 31, 2014.
Twelve Month Results
For the year ended December 31, 2015, net sales of $3,051.5 million decreased 5.9% compared with the prior-year period due to unfavorable currency translation (-6.9%) and the effect of Venezuela (-0.4%), partially offset by higher sales volumes (+0.8%) and improved pricing (+0.6%).
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The following information was filed by W R Grace Co (GRA) on Thursday, February 11, 2016 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.