Chemical Blog

Grace beats estimates, upbeat on 2017




W.R. Grace reports fourth-quarter net income of $11.1 million, down 45.3% year-on-year (YOY). Results included a pension mark-to-market adjustment of $61.4 million. Adjusted earnings of 95 cts/share were 32% higher YOY and beat the analysts’ consensus estimate, compiled by Thomson Reuters (New York), by a penny. Net sales increased 3.8% YOY, to $440.8 million

Catalyst technologies sales increased 7.3% YOY, to $328.9 million, on the acquisition of BASF’s polyolefin catalysts business in July of 2016 and higher selling prices. Segment operating income increased 7.1%, to $107.7 million, on the acquisition, higher margins, and higher income from Grace’s ART joint venture.

Materials technologies sales declined 5.4% YOY, to $11.9 million, primarily due to the spin-out of the segment’s Darex product line into GCP Applied Technologies in February 2016. Segment operating income increased 13.3%, to $29.0 million, on lower expenses and manufacturing costs.

By region, YOY sales declined 1.7% in North America and 28.2% in Latin America, but increased 11.2% and 11.0% in EMEA and Asia Pacific, respectively.

Looking ahead, the company expects 2017 adjusted earnings of $3.30–$3.55/share, up 6-15% YOY and ahead of analysts’ consensus estimate of $3.09/share.