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Grace Reports Second Quarter 2017 Results
Net sales of $429.5 million up 10%
Diluted EPS from continuing operations of $0.64, and Adjusted EPS of $0.84 up 14%
Income from continuing operations attributable to Grace of $43.9 million, and Adjusted EBIT of $104.0 million up 8%
Net cash flow provided by operating activities of $140.5 million and Adjusted Free Cash Flow of $135.6 million year-to-date
Declaring quarterly cash dividend of $0.21 per share
COLUMBIA, MD - July 27, 2017 - W. R. Grace & Co. (NYSE: GRA) announced second quarter net sales of $429.5 million increased 10% compared with the prior-year quarter. Income from continuing operations attributable to Grace for the second quarter was $43.9 million, or $0.64 per diluted share compared with $38.1 million, or $0.54 per diluted share in the prior-year quarter. Adjusted EBIT increased 8% to $104.0 million, and second quarter Adjusted EPS increased 14% to $0.84 per diluted share.
“We had another good quarter of growth," said Fred Festa, Grace’s Chairman and Chief Executive Officer. "Our results reflect continued strong demand in our end markets with very well positioned products and technologies, supported by a disciplined operating framework."
For the six months ended June 30, 2017, net sales of $827.5 million increased 9.8% compared with the prior-year period.
Income from continuing operations was $86.8 million for the six months, an increase of 79.0% compared with $48.5 million for the prior-year period. Adjusted EBIT of $190.8 million increased 6.8% from the prior-year period. Adjusted EBIT margin of 23.1% decreased 60 basis points compared with the prior-year period.
Grace Catalysts Technologies
Second quarter sales for Catalysts Technologies, which includes catalysts and additives for refinery, plastics, and other chemical process applications, as well as polypropylene process technology, were $320.5 million, an increase of 15% compared with the prior-year quarter, primarily due to the polyolefin catalysts acquisition completed last year, and higher organic sales volumes, partially offset by unfavorable currency translation.
Gross margin was 40.4% compared with 46.2% in the prior-year quarter, a decrease of 580 basis points. Gross margin decreased primarily due to regional and product mix, including the effect of the polyolefin catalysts acquisition, higher manufacturing costs and an outage at a customer facility.
Operating income of $101.3 million increased 16% compared with the prior-year quarter. The increase was primarily due to higher sales, higher income from the ART joint venture, and business interruption insurance recoveries related to a customer outage, partially offset by lower gross margins. Operating margin was 31.6%, an increase of 20 basis points compared with the prior-year quarter. Income from
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The following information was filed by W R Grace Co (GRA) on Thursday, July 27, 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-Q Quarterly Report statement of earnings and operation as management may choose to highlight particular information in the press release.