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Grace Reports Fourth Quarter and Full-Year 2017 Results
Net sales for the quarter of $459.5 million up 4%; net sales for the full year of $1.7 billion up 7%
Diluted EPS from continuing operations for the quarter of $(1.81) and for the full year of $0.16, including a charge of $2.10 per share related to U.S. tax reform
Adjusted EPS for the quarter of $0.98 up 3% and for the full year of $3.40 up 10%
Net cash flow provided by operating activities for the full year of $319.2 million, up 19% and Adjusted Free Cash Flow of $274.0 million, up 16%
Increasing annual cash dividend 14% and declaring quarterly cash dividend of $0.24 per share
COLUMBIA, MD - February 8, 2018 - W. R. Grace & Co. (NYSE: GRA) announced that fourth quarter net sales of $459.5 million increased 4% compared with the prior-year quarter. Loss from continuing operations attributable to Grace for the fourth quarter was $123.0 million, or $1.81 per diluted share, compared with income of $17.3 million, or $0.25 per diluted share in the prior-year quarter. Fourth quarter results include a charge of $143 million to reflect the estimated impacts of U.S. tax reform. Fourth quarter Adjusted EBIT decreased 3% to $115.1 million, and fourth quarter Adjusted EPS increased 3% to $0.98 per diluted share.
“I am proud of the way the company delivered seven percent top line growth and ten percent Adjusted EPS growth, overcoming the early obstacles in 2017," said Fred Festa, Grace’s Chairman and Chief Executive Officer. "The company is well positioned to take advantage of market opportunities and strong demand for our differentiated products."
For the twelve months ended December 31, 2017, net sales of $1,716.5 million increased 7% compared with the prior-year period. Income from continuing operations attributable to Grace was $11.2 million for the twelve months, compared with $107.0 million for the prior-year period, and full-year diluted earnings per share were $0.16 compared with $1.52 for the prior-year period. Adjusted EBIT of $414.0 million increased 3% from the prior-year period, and full year Adjusted EPS increased 10%.
Grace Catalysts Technologies
Fourth 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 $344.7 million, an increase of 5% compared with the prior-year quarter primarily due to higher sales volumes and favorable currency translation, partially offset by a decrease in average price due to customer mix.
Gross margin was 42.1% compared with 43.5% in the prior-year quarter, a decrease of 140 basis points primarily due to higher manufacturing costs, including raw materials, and customer and product mix.
Operating income of $109.3 million increased 1% compared with the prior-year quarter. The increase was primarily due to higher sales volumes and favorable currency translation, partially offset by higher
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The following information was filed by W R Grace Co (GRA) on Thursday, February 8, 2018 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.