W.R. Grace Beats Street, Shares Jump
W.R. Grace posted a higher-than-expected fourth-quarter profit on Wednesday as the chemicals maker raised prices on catalysts and construction products, helping lift its stock to an all-time high.
The results came after Grace said on Tuesday night its reorganization plan had been approved by a district court, clearing a major hurdle for it to emerge from decade-long bankruptcy protection.
Grace also announced a settlement with residents of Libby, Montana, who had become ill when exposed to asbestos at a Grace mine. Grace will turn over management of a medical trust to local authorities and fund it with $19.5 million, and Libby residents will not contest the bankruptcy exit.
"By eliminating appeals from we think we have significantly reduced the chances that we'll have trouble" exiting bankruptcy protection, Chief Financial Officer Hudson LaForce told Reuters on Wednesday.
Fourth-quarter earnings rose to $58.1 million, or 77 cents per share, from $44.9 million, or 60 cents per share, a year ago.
Excluding bankruptcy costs and other one-time items, Grace earned 89 cents per share.
By that measure, analysts expected earnings of 87 cents per share, according to Thomson Reuters I/B/E/S.
Revenue rose 19% to $825.6 million.
Sales jumped 14% in the company's construction products unit, as it raised prices 4%. Sales rose 21% in the Davison unit, which makes catalysts used in refineries. That unit raised prices 24%, the company said.
"We do see a slowing of the global economy in 2012 compared with 2011, but based on the strength of our products and investments we've made, we expect to grow our volumes 4% to 5% this year," LaForce said.
