Grace Reports Fourth Quarter and Full-Year 2016 Results
Income from continuing operations attributable to Grace of $12.8 million down 53% and Adjusted EBIT of $118.9 million up 11% for the quarter
Diluted EPS from continuing operations of $0.18 down 54% and Adjusted EPS of $0.95 up 32% for the quarter
Gross margin of 36.7% and Adjusted Gross Margin of 42.8% up 60 bps for the quarter
Net cash flow provided by operating activities of $267.5 million and Adjusted Free Cash Flow of $236.0 million for the full year
Increasing annual cash dividend rate 24% and declaring quarterly cash dividend of $0.21 per share
COLUMBIA, MD - February 8, 2017 - W. R. Grace & Co. (NYSE: GRA) announced fourth quarter income from continuing operations attributable to Grace of $12.8 million, or $0.18 per diluted share. Income from continuing operations attributable to Grace for the prior-year quarter was $27.5 million, or $0.39 per diluted share. Adjusted EBIT increased 11% to $118.9 million, and fourth quarter Adjusted EPS increased 32% to $0.95 per diluted share.
"We finished 2016 with a strong quarter delivering top line revenue growth both year-over-year and sequentially," said Fred Festa, Grace’s Chairman and Chief Executive Officer. "It was a year of significant transition for Grace. We positioned ourselves well for the future by completing the separation of our construction business, acquiring a polyolefin catalysts business, and divesting certain non-core product lines. We made real progress to align costs with our new structure and made effective use of cash."
Fourth Quarter Results
Fourth quarter net sales of $440.8 million increased 4% compared with the prior-year quarter. Compared with the third quarter, net sales grew 9%.
Income from continuing operations was $12.8 million for the fourth quarter, a decrease of 53% compared with $27.5 million for the prior-year quarter, primarily due to the effects of the pension mark-to-market adjustment of $61.4 million. Adjusted EBIT of $118.9 million increased 11% from the prior-year quarter. Adjusted EBIT margin of 27.0% increased 170 basis points compared with the prior-year quarter.
Diluted EPS from continuing operations was $0.18, including a $0.59 unfavorable impact from the pension mark-to-market adjustment, down 54% compared with the prior-year quarter. Adjusted EPS was $0.95, up 32% compared with the prior-year quarter.
Twelve Month Results
For the twelve months ended December 31, 2016, net sales of $1.6 billion decreased 2% compared with the prior-year period.
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The following information was filed by W R Grace Co (GRA) on Wednesday, February 8, 2017 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: 0001045309-17-000022 Submitted to the SEC: Thu Feb 23 2017 4:03:12 PM EST Accepted by the SEC: Thu Feb 23 2017 Period: Saturday, December 31, 2016 Industry: Chemicals And Allied Products