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Grace Reports Third Quarter 2017 Results
Net sales of $429.5 million up 6%
Diluted EPS from continuing operations of $0.70 up 21%, and Adjusted EPS of $0.90 up 13%
Income from continuing operations attributable to Grace of $47.4 million up 15%, and Adjusted EBIT of $108.1 million up 5%
Net cash flow provided by operating activities of $267.5 million and Adjusted Free Cash Flow of $249.3 million year-to-date
Declaring quarterly cash dividend of $0.21 per share
COLUMBIA, MD - October 25, 2017 - W. R. Grace & Co. (NYSE: GRA) announced that third quarter net sales of $429.5 million increased 6% compared with the prior-year quarter. Income from continuing operations attributable to Grace for the third quarter was $47.4 million, or $0.70 per diluted share compared with $41.2 million, or $0.58 per diluted share in the prior-year quarter. Adjusted EBIT increased 5% to $108.1 million, and third quarter Adjusted EPS increased 13% to $0.90 per diluted share.
“We had another good quarter of sales growth and cash generation," said Fred Festa, Grace’s Chairman and Chief Executive Officer. "We continue to see strong demand across all our businesses, especially for our most differentiated technologies, positioning us for growth into 2018."
For the nine months ended September 30, 2017, net sales of $1,257.0 million increased 9% compared with the prior-year period. Income from continuing operations attributable to Grace was $134.2 million for the nine months, an increase of 50% compared with $89.7 million for the prior-year period. Adjusted EBIT of $298.9 million increased 6% from the prior-year period.
Grace Catalysts Technologies
Third 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 $317.5 million, an increase of 7% compared with the prior-year quarter primarily due to higher sales volumes and favorable currency translation, partially offset by impacts of the hurricane events.
Gross margin was 41.4% compared with 44.6% in the prior-year quarter, a decrease of 320 basis points primarily due to regional and product mix, higher raw materials and energy costs, and a slight decline in pricing driven by customer mix. Gross margin improved by 100 basis points sequentially. Gross profit approximated the prior-year quarter.
Operating income of $103.6 million increased 10% compared with the prior-year quarter. The increase was primarily due to business interruption insurance recoveries related to a customer outage partially offset by lower income from the ART joint venture. Operating margin was 32.6%, an increase of 70 basis points compared with the prior-year quarter. Income from business interruption insurance recoveries in the third quarter was $12 million, and $25 million year-to-date. The ART joint venture
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The following information was filed by W R Grace Co (GRA) on Wednesday, October 25, 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.