Adjusted Free Cash Flow was $146.6 million for the six months ended June 30, 2012, compared with $59.6 million in the prior-year period.2012 Outlook As of July 25, 2012, Grace affirmed its outlook for 2012 Adjusted EBIT in the range of $510 million to $530 million, up 6 to 11 percent compared with 2011 Adjusted EBIT of $478.6 million. The company expects 2012 Adjusted EBITDA in the range of $630 million to $650 million. The following updated assumptions are components of Grace’s 2012 outlook:
- Consolidated sales in the range of $3.1 billion to $3.2 billion, reflecting improved sales volumes and base pricing, offset by lower rare earth surcharges and unfavorable currency translation of approximately $175 million and $125 million, respectively.
- Consolidated gross margin in the high end of the 35-37 percent target range with raw material inflation expected to moderate in the second half of 2012;
- An average euro exchange rate of $1.22 for the remainder of the year, compared with an average of $1.38 for the second half of 2011.
- Pension expense of approximately $72 million for the full year, compared with $63 million for 2011; and,
- An effective tax rate of 33.5 percent and a cash tax rate of 14.0 percent.