W. R. Grace & Co. (NYSE: GRA) announced third quarter net income of $75.5 million, or $0.99 per diluted share. Net income for the prior-year quarter was $81.3 million, or $1.07 per diluted share. Adjusted EPS was $1.04 per diluted share compared with $1.16 per diluted share for the prior-year quarter.
Net income for the nine months ended September 30, 2012, was $205.7 million, or $2.70 per diluted share, compared with $211.3 million, or $2.80 per diluted share for the prior-year period. Adjusted EPS was $3.07 per diluted share compared with $3.06 per diluted share for the prior-year period.
“Our results were in line with our plan,” stated Fred Festa, Grace’s Chairman and Chief Executive Officer. “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.”
Third Quarter ResultsThird quarter sales of $776.6 million declined 10.1 percent compared with the prior-year quarter as improved base pricing (+3.7 percent) and higher sales volumes (+1.6 percent) were offset by lower rare earth surcharges (-9.5 percent) and unfavorable currency translation (-5.9 percent). Sales in emerging regions represented 39.1 percent of sales and grew 16.8 percent compared with the prior-year quarter. Acquisitions contributed $7.2 million to sales in the quarter, while divestitures decreased sales by $5.3 million. Gross profit of $284.8 million declined 10.0 percent compared with the prior-year quarter as improved base pricing and higher sales volumes were more than offset by unfavorable currency translation, unfavorable product mix and the impact of lower rare earth costs and volumes on capitalized inventory values. Gross margin of 36.7 percent increased 10 basis points compared with the prior-year quarter, continuing at the top-end of the company’s target range of 35 to 37 percent.
Select the service that is right for you!COMPARE ALL SERVICES
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
- Real Money + Doug Kass Plus 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV