W.R. Grace Jumps On Guidance
COLUMBIA, Md. (
) --
W.R. Grace
(GRA) - Get Report
, the chemical company sent into bankruptcy eight years ago by asbestos claims, lifted its financial guidance for 2009, sending shares in the company soaring Friday.
In an 8-K filing with the
SEC
, Grace said its "core" earnings before interest, taxes and amortization for 2009 will surpass its previous forecast of $357 million, while earnings before interest and taxes will exceed the previous forecast of $241 million.
The company also said it now expects to post net income of $48 million for the full year.
In 2008, Grace earned $121.5 million on revenue of $3.3 billion.
In afternoon trading Friday, Grace shares were changing hands at $22.44, up $2.43, or 12%, on volume of 1.4 million shares. Average daily turnover is about 540,000.
Grace has operated under Chapter 11 protection since 2001, when massing personal-injury asbestos disease claims became too much for it to handle financially. The company, which had estimated that it would need some $1 billion in financing to emerge from court protection, has been attempting to do so by the end of this year.
In February, Grace submitted a reorganization plan to the Delaware bankruptcy court under which it operates as a debtor-in-possession. The company wants to set up a $2.9 billion fund to pay down the claims and shield it from further litigation over its former asbestos products.
Grace has sold off many of its old businesses, and has focused on making sealants and other materials for reducing emissions at energy refineries as well as construction chemicals.
-- Written by Scott Eden in New York
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Scott Eden has covered business -- both large and small -- for more than a decade. Prior to joining TheStreet.com, he worked as a features reporter for Dealmaker and Trader Monthly magazines. Before that, he wrote for the Chicago Reader, that city's weekly paper. Early in his career, he was a staff reporter at the Dow Jones News Service. His reporting has appeared in The Wall Street Journal, Men's Journal, the St. Petersburg (Fla.) Times, and the Believer magazine, among other publications. He's also the author of Touchdown Jesus (Simon & Schuster, 2005), a nonfiction book about Notre Dame football fans and the business and politics of big-time college sports. He has degrees from Notre Dame and Washington University in St. Louis.
