Grace Announces Adjustment to Asbestos-Related Liability

  Grace Announces Adjustment to Asbestos-Related Liability

  *$365 million non-cash, pre-tax charge to be reported in fourth quarter
  *No impact to Adjusted EBIT or Adjusted EPS for the quarter or year

Business Wire

COLUMBIA, Md. -- January 24, 2013

W. R. Grace & Co. (NYSE: GRA) announced today that it will adjust its recorded
asbestos-related liability to $2,065 million from the previous amount of
$1,700 million. Grace will report a $365 million non-cash, pre-tax charge in
its fourth quarter 2012 earnings. This non-cash charge will have no impact on
Adjusted EBIT or Adjusted EPS.

As discussed in the company’s November 9, 2012 teleconference with analysts,
an adjustment to the recorded amount is now necessary to reflect the increased
estimates of the settlement values of the warrant and deferred payment
obligation payable to the asbestos personal injury trust under Grace’s plan of

The company currently estimates the warrant’s value to be $490 million, the
maximum value under the company’s cash settlement agreement with the asbestos
trust. The cash settlement agreement was approved by the bankruptcy court on
December 17, 2012.

The company currently estimates the deferred payment obligation’s value to be
$547 million. The increase in the estimated value of the deferred payment
obligation reflects the company’s improved borrowing costs and the expected
timing of its bankruptcy emergence.

The non-cash charge of $365 million is lower than the range of $375 million to
$475 million that the company had estimated in its November 9 teleconference.

The ultimate cost of settling the asbestos-related liability will be based on
the value of the consideration transferred to the asbestos trusts at emergence
and may vary from the current estimate.

The company will release fourth quarter 2012 earnings before market open on
February 6 and will conduct a conference call with analysts and investors at
11:00 a.m. EST the same day. Conference call dial-in instructions can be found
at the Investor Information page on the company’s web site at

About Grace

Grace is a leading global supplier of catalysts; engineered and packaging
materials; and, specialty construction chemicals and building materials. The
company’s three industry-leading business segments—Grace Catalysts
Technologies, Grace Materials Technologies and Grace Construction
Products—provide innovative products, technologies and services that enhance
the quality of life. Grace employs approximately 6,000 people in over 40
countries and had 2011 net sales of $3.2 billion. More information about Grace
is available at

This announcement contains forward-looking statements, that is, information
related to future, not past, events. Such statements generally include the
words “believes,” “plans,” “intends,” “targets,” “will,” “expects,”
“suggests,” “anticipates,” “outlook,” “continues” or similar expressions.
Forward-looking statements include, without limitation, all statements
regarding Grace’s Chapter 11 case; expected financial positions; results of
operations; cash flows; financing plans; business strategy; budgets; capital
and other expenditures; competitive positions; growth opportunities for
existing products; benefits from new technology and cost reduction
initiatives, plans and objectives; and markets for securities. For these
statements, Grace claims the protection of the safe harbor for forward-looking
statements contained in the Private Securities Litigation Reform Act of 1995.
Like other businesses, Grace is subject to risks and uncertainties that could
cause its actual results to differ materially from its projections or that
could cause other forward-looking statements to prove incorrect. Factors that
could cause actual results to materially differ from those contained in the
forward-looking statements include, without limitation: developments affecting
Grace’s bankruptcy, proposed plan of reorganization and settlements with
certain creditors, the cost and availability of raw materials (including rare
earth) and energy, developments affecting Grace’s underfunded and unfunded
pension obligations, risks related to foreign operations, especially in
emerging regions, acquisitions and divestitures of assets and gains and losses
from dispositions or impairments, the effectiveness of its research and
development and growth investments, its legal and environmental proceedings,
costs of compliance with environmental regulation and those factors set forth
in Grace’s most recent Annual Report on Form 10-K, quarterly report on Form
10-Q and current reports on Form 8-K, which have been filed with the
Securities and Exchange Commission and are readily available on the Internet
at Reported results should not be considered as an indication of
future performance. Readers are cautioned not to place undue reliance on
Grace’s projections and forward-looking statements, which speak only as of the
date thereof. Grace undertakes no obligation to publicly release any revision
to the projections and forward-looking statements contained in this
announcement, or to update them to reflect events or circumstances occurring
after the date of this announcement.


W. R. Grace & Co.
Media Relations
Rich Badmington, +1 410-531-4370
Investor Relations
Mark Sutherland, +1 410-531-4590
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