US WR Grace’s Q3 net income falls 7.1% to $75.5m on lower sales

24 October 2012 11:58  [Source: ICIS news]

LONDON (ICIS)--WR Grace’s third-quarter net income fell by 7.1% to $75.5m (€58.1m) year on year on falling sales, the US specialty chemicals company said on Wednesday.

Third-quarter sales of $776.6m were a decline of 10.1% compared with the prior-year quarter as “improved base pricing (+3.7%) and higher sales volumes (+1.6%) were offset by lower rare earth surcharges (-9.5%) and unfavourable currency translation (-5.9%)”.

Grace added that sales in emerging regions represented 39.1% of total sales and grew by 16.8% year on year in the three months ending on 30 September.

Acquisitions contributed $7.2m to sales in the quarter, while divestitures decreased sales by $5.3m, the company said.

Adjusted earnings before interest and tax (EBIT) in the third quarter stood at $129.1m, a fall of 9.0% compared with the same period last year.

Grace said the decrease was primarily because of lower segment operating income in its Catalysts Technologies and Materials Technologies businesses, which was partially offset by higher segment operating income in its Construction Products segment and lower corporate expenses.

Grace chairman and CEO Fred Festa said: “All three of our operating segments improved base pricing and increased sales volumes as strong growth in the emerging regions offset weaker demand in the advanced economies.”

“Our disciplined approach to productivity, cost control and working capital improved earnings and cash flow in the quarter,” he added.

As of 24 October, Grace updated its outlook for 2012 adjusted EBIT to the range of $510m-520m, an increase of 6-9% compared with 2011 adjusted EBIT of $478.6m.

($1 = €0.77)

By: Franco Capaldo
+44 (0)20 8652 3214

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