24 April 2013 11:37 [Source: ICIS news]
LONDON (ICIS)--WR Grace reported a first-quarter net income of $52.9m (€40.7m), down 13% from a net income of $60.9m in the prior-year quarter, on the back of lower sales, the US-based catalyst producer said on Wednesday.
First-quarter net sales of $709.9m decreased 5.9% compared with the same quarter the year before. The decrease was due to lower pricing (-5.0%) and unfavourable currency translation (-0.9%), as sales volumes were unchanged, the company added.
Grace’s gross profit of $263.8m for the three months ended 31 March 2013 fell by 4.8% year on year, primarily due to lower sales.
The group’s adjusted earnings before interest and tax (EBIT) decreased 5.8% to $104.9m, primarily because of lower sales, which offset lower manufacturing costs and reduced operating expenses, it added.
Grace’s adjusted EBIT margin of 14.8% was unchanged from the first quarter of 2012.
“Sales and earnings were below our expectations,” said Fred Festa, Grace's chairman and CEO.
“Customer operational issues and delayed orders in Catalysts Technologies led to weaker results than we expected.
“While the economic environment is more challenging than we planned, our productivity focus and operating flexibility enabled us to maintain our operating margin and deliver strong year-over-year earnings growth in Materials Technologies and Construction Products," he added.
Grace said as of 24 April, it expects 2013 adjusted EBIT to be in the range of $540m-560m, an increase of 4-8% compared with 2012 adjusted EBIT of $517.4m.
($1 = €0.77)
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