01 February 2012 12:11 [Source: ICIS news]
LONDON (ICIS)--WR Grace’s fourth-quarter net income increased by 29% to $58.1m year on year on rising sales revenues and volumes, the US specialty chemicals company said on Wednesday.
Net sales were up by 19% from the same period last year to $825.6m (€627.5m), on the back of improved pricing and higher volumes, partially offset by unfavourable currency translation.
Sales in the emerging regions during the fourth quarter grew 14.6% year on year, Grace added.
Adjusted earnings before interest and tax (EBIT) in the third quarter rose 36% year on year to $108.2m.
“Both segments [Grace Davison and Grace Construction Products] had a solid finish to 2011, and we have good momentum as we start 2012,” said Fred Festa, Grace’s chairman and CEO.
“Our earnings growth reflects the high value of our products and strong execution by our business teams,” he added.
Fourth-quarter sales for the group’s Grace Davison operating segment, which includes specialty catalysts and materials used in a wide range of industrial applications, were $572.0m, an increase of 21% compared with the prior-year quarter, primarily because of improved pricing, up 24%.
The group’s Grace Construction Products operating segment, which includes specialty construction chemical products and specialty building material products used in commercial, infrastructure and residential construction, reported a 14% year-on-year rise in sales during the quarter at $253.6m.
Grace’s total net income for the full year ended 31 December 2011 was $269.4m, up 30% from 2010, while net sales increased 20% year on year to $3.21bn.
As of 1 February 2012, Grace expects 2012 adjusted EBIT to be in the range of $510m-530m, up 6-11% compared with 2011 adjusted EBIT of $478.6m.
Grace also expects consolidated sales in 2012 in the range of $3.25bn-3.35bn, reflecting improved sales volumes and base pricing, partially offset by lower rare earth surcharges and unfavourable currency translation totalling approximately $200m.
Festa said: “We are confident in our 2012 goals. We have the right exposure to higher-growth emerging regions and we will benefit from the investments that we made during the last 18 months in new products, manufacturing capacity and productivity initiatives.
“We are targeting at least $850m in adjusted EBITDA [earnings before interest, tax, depreciation and amortisation] by 2014.”
($1 = €0.76)
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