Grace Announces Preliminary 2013 First Quarter Earnings; Updates 2013 Earnings Outlook

  Grace Announces Preliminary 2013 First Quarter Earnings; Updates 2013
  Earnings Outlook

Business Wire

COLUMBIA, Md. -- April 10, 2013

W. R. Grace & Co. (NYSE: GRA) announced preliminary 2013 first quarter net
income of $52 million to $53 million, or $0.68 to $0.69 per diluted share.
Preliminary Adjusted EBIT is $104 million to $105 million and preliminary
Adjusted EPS is $0.80 to $0.81 per diluted share.

2013 First Quarter

Preliminary segment operating income of the Grace Catalysts Technologies
business segment is approximately $77 million. Preliminary sales for Catalysts
Technologies are approximately $266 million. Preliminary segment gross margin
is approximately 40 percent and preliminary segment operating margin is
approximately 29 percent.

Catalysts Technologies’ preliminary sales and earnings are below company
expectations primarily due to the loss of expected sales at four large
customers from customer operational issues and customer inventory reductions
(approximately $7 million in earnings) and the delay of expected sales at five
large customers, primarily of our ART joint venture (approximately $5 million
in earnings).

Preliminary segment operating income for the Grace Materials Technologies and
Grace Construction Products business segments increased more than 10 percent
compared with the prior-year quarter, in line with company expectations.

As previously disclosed in Grace’s 2012 Form 10-K, the Venezuelan government
changed the official exchange rate of the bolivar to the U.S. dollar from 4.3
to 6.3 during the first quarter. As a result, Grace recorded a currency
transaction loss of approximately $8 million before taxes in its 2013 first
quarter earnings, of which approximately $2 million is included in Adjusted

2013 Outlook

As of April 10, 2013, Grace expects 2013 Adjusted EBIT to be in the range of
$540 million to $560 million, an increase of 4 to 8 percent compared with 2012
Adjusted EBIT of $517.4 million. The company expects 2013 Adjusted EBITDA to
be in the range of $665 million to $685 million.

European economic conditions are weaker than expected, affecting the sales
growth of all three business segments. In addition, this update anticipates
lower sales volumes in Catalysts Technologies as the business transitions to
new refinery catalyst pricing as announced March 13, 2013. These price
increases are necessary to support Grace’s continued investments in product
technology, technical services, and manufacturing capacity in this business.
Refining catalyst sales volumes are expected to recover as new refining
capacity starts to come on-stream by the end of this year.

Investor Call

Grace will release its full first quarter 2013 financial results at 6:00 a.m.
ET on Wednesday, April 24, 2013. A company-hosted conference call and webcast
will follow at 11:00 a.m. ET that day.

Access to the live webcast and the accompanying slides will be available
through the Investor Information section of the company’s web site, Those without access to the Internet can participate by dialing
+1 877.299.4454 (U.S.) or +1 617.597.5447 (International). The participant
passcode is 60991616. Investors are advised to dial into the call at least ten
minutes early in order to register.

An audio replay will be available at 1:00 p.m. ET on April 24. The replay will
be accessible by dialing +1 888.286.8010 (U.S.) or +1 617.801.6888
(International) and entering the participant passcode 29840878. The replay
will be available for one week.

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 6,500 people in over 40
countries and had 2012 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, propose 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 region, 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 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
Press spacebar to pause and continue. Press esc to stop.