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#2595
GRACE FIRST QUARTER OPERATING EARNINGS PER SHARE RISE
56 PERCENT; NET RISES 22 PERCENT AFTER SPECIAL CHARGE
BOCA RATON, FLA., April 27, 1995 -- W. R. Grace & Co. (NYSE:GRA) reported
net operating earnings of 64 cents per share in the first quarter of 1995, an
increase of 56 percent over the 41 cents per share earned in the first quarter
of 1994. Net income in the 1995 quarter was $47.5 million or 50 cents per
share, compared to $38.2 million or 41 cents per share in the 1994 quarter, a
per-share increase of 22 percent. The current quarter includes a $20 million
pre-tax charge for contract termination costs, as well as pension, legal and
other expenses related to corporate governance activities.
Sales for the quarter rose 25 percent to $1.35 billion, compared to $1.08
billion in the year earlier period.
"All of the company's six core businesses and every geographic region
contributed to the excellent results in the quarter," said Thomas A. Holmes,
acting chief executive officer. "The strong earnings momentum that developed in
1994 is clearly continuing in 1995," he said.
Pretax earnings from specialty chemicals rose 97 percent to $79 million in
the first quarter. All core product lines again contributed solidly to the
increase. Packaging earnings rose sharply, reflecting significantly higher
volumes in all regions and resulting in market-share improvements, while
selective price increases compensated for rising raw material costs. Catalysts
and silica products enjoyed an outstanding quarter, with benefits from new fluid
cracking catalyst offerings, robust plastics market demand for
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polyolefin catalysts, overall strength in Europe and increased market
penetration for FCCs and silicas in the Asia Pacific region. Container,
construction and water treatment all registered positive comparisons with the
year ago quarter on the strength of volume increases in all regions.
Pretax earnings from health care rose 23 percent to $54 million. Dialysis
services benefited from continued strong performance in the United States and
from expansion programs in international markets. The homecare division showed
improved results, and the medical products group improved sharply from year ago
levels, which were impacted by higher operating costs incurred to improve
manufacturing processes.
Partly offsetting the increases in operating results were higher interest
and financing costs caused by higher interest rates in the 1995 quarter.
Grace is the world's largest specialty chemicals company and holds a
leadership position in specialized health care.
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W. R. Grace & Co.
Consolidated Statement of Income
QUARTER ENDED MARCH 31
($ Millions Except Per Share)
1995 1994
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Sales $1,345.2 $1,076.8
Other income 5.5 32.5
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Total $1,350.7 $1,109.3
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Cost of goods sold and operating expenses $797.1 $680.6
Selling, general and administrative expenses 340.4 265.4
Depreciation and amortization 65.0 59.3
Interest expense and related financing costs 35.9 21.1
Research and development expenses 36.9 34.0
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Total $1,275.3 $1,060.4
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Income before income taxes $ 75.4 $ 48.9
Provision for income taxes 27.9 10.7
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Net Income $ 47.5 $ 38.2
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Earnings Per Share $ .50 $ .41
Average Number of Shares (Millions) 94.1 93.8
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W. R. Grace & Co.
Operating Results
QUARTER ENDED MARCH 31
($ Millions Except Per Share)
Percent
1995 1994 Change
--------- --------- -------
SALES
Specialty Chemicals $ 853.4 $ 675.4 26.4 %
Health Care 491.8 401.4 22.5
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Total Sales $ 1,345.2 $ 1,076.8 24.9
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OPERATING INCOME
Specialty Chemicals $ 78.9 $ 40.1 96.8
Health Care 53.6 43.7 22.7
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Total Operating Income $ 132.5 $ 83.8 58.1
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OTHER EXPENSES
Interest/Financing $ (35.9) $ (21.1) (70.1)
Other (1.2) (0.8) (50.0)
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Total Other Expenses $ (37.1) $ (21.9) (69.4)
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Pretax Operating Earnings $ 95.4 $ 61.9 54.1
Gain on Sale of Interest in REG -- 27.0 (100.0)
Provision for Environmental/Restructuring -- (40.0) 100.0
Provision for Corporate Governance Expenses (20.0) -- ND
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Pretax Income $ 75.4 $ 48.9 54.2
Provision for Income Taxes 27.9 10.7 (160.7)
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Net Income $ 47.5 $ 38.2 24.3 %
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EARNINGS PER SHARE:
Before Provision for Corporate Governance Expenses $ .64 $ .41 56.1 %
Net Income $ .50 $ .41 22.0 %
Average Number of Shares (Millions) 94.1 93.8
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W. R. Grace & Co.
Specialty Chemicals Supplemental Data
1995 SALES AND PERCENT CHANGE VERSUS PRIOR PERIOD
(Dollars In Millions)
QUARTER ENDED MARCH 31
Amount of Inc/(Dec) Due to:
Sales ----------------------------------------------------
----------------------- Price/
1995 (a) 1994 Vol. Mix Exch. Total
-------- ------ ----- ------- ----- -----
Packaging $390.8 $299.0 24 % 3 % 4 % 31 %
Catalysts/Silicas 164.9 132.0 15 5 5 25
Construction 87.2 70.5 22 - 2 24
Container 87.5 69.8 21 (2) 6 25
Water Treatment 93.1 77.4 17 (1) 4 20
Other 29.9 26.7 3 7 2 12
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Total $853.4 $675.4 20 % 2 % 4 % 26 %
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<FN>
(a) Specialty Chemicals reporting calendar was adjusted to a month-end
reporting basis in 1995. This resulted in approximately four more selling
days in the first quarter of 1995 as compared to the year ago quarter.
W. R. Grace & Co.
GEOGRAPHIC DATA
(Dollars In Millions)
QUARTER ENDED MARCH 31
Pretax
Sales Operating Income
----------------- ------------------
1995 1994 1995 1994
------- ------- ------- -------
North America $ 877 $ 734 $ 86 $ 66
Europe 299 225 25 9
Latin America 63 46 4 --
Asia Pacific 106 72 17 9
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Total $ 1,345 $ 1,077 $ 132 $ 84
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