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SECURITIES AND EXCHANGE COMMISSION
Washington, D. C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): APRIL 28, 1994
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W. R. GRACE & CO.
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(Exact name of registrant as specified in its charter)
NEW YORK 1-3720 13-3461988
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(State or other (Commission File (IRS Employer
jurisdiction of Number) Identification No.)
incorporation)
ONE TOWN CENTER ROAD, BOCA RATON, FLORIDA 33486-1010
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(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code: 407/362-2000
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Item 5. OTHER EVENTS.
On April 28, 1994, W. R. Grace & Co. ("Company") announced its
consolidated results of operations for the quarter ended March 31, 1994. The
Company's April 28, 1994 press release and accompanying financial and
statistical data are filed as an exhibit hereto and are incorporated by
reference herein.
Item 7. FINANCIAL STATEMENTS, PRO FORMA FINANCIAL INFORMATION AND EXHIBITS.
The Company's April 28, 1994 press release and accompanying financial
and statistical data are filed as an exhibit hereto.
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SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934,
the Registrant has duly caused this report to be signed by the undersigned
thereunto duly authorized.
W. R. GRACE & CO.
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(Registrant)
By s/Richard N. Sukenik
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Richard N. Sukenik
Vice President and Controller
Dated: May 4, 1994
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W. R. GRACE & CO.
Current Report on Form 8-K
EXHIBIT INDEX
EXHIBIT NO. DESCRIPTION
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99.1 Press Release dated April 28,
1994 and accompanying financial
and statistical data
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GRACE REPORTS 17 PERCENT RISE IN FIRST QUARTER
PER SHARE EARNINGS FROM CONTINUING OPERATIONS
Boca Raton, Fla., April 28, 1994 -- W. R. Grace & Co. reported net
income of $38.2 million, or 41 cents per share, for the first quarter of 1994, a
per share increase of 17 percent, compared to $31.7 million, or 35 cents per
share from continuing operations in the first quarter of 1993. The year ago
quarter included a $3.4 million loss from discontinued operations which reduced
reported net income to $28.3 million or 31 cents per share. Sales for the
quarter rose 9 percent to $1,077 million, compared to $986 million in the year
earlier period.
"With the main phase of our restructuring program nearing completion,
our first quarter results provide further evidence that Grace can sustain solid
earnings growth," said J. P. Bolduc, president and chief executive officer.
"Health care, packaging and catalysts are strong. European earnings were
slightly ahead of the year-ago quarter based on improved results from catalysts,
construction and health care. Overhead reduction and productivity improvement
programs are ongoing."
(more)
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During the 1994 first quarter, the Company recorded a pretax charge of
$40 million to provide for future environmental costs relating primarily to a
previously-divested business, as well as for the estimated costs of previously
announced workforce reductions at the Company's headquarters and its central
research and development facility. Offsetting the charge, and its related tax
benefit, was a $27 million pre and after-tax gain from the sale in January of
Grace's remaining interest in The Restaurant Enterprises Group.
Pretax earnings from specialty chemicals fell four percent to $40.1
million in the first quarter. While earnings from packaging, catalysts and
silicas, and construction products all rose from the year ago quarter on the
strength of increased volumes in most regions, earnings declines in water
treatment and container products more than offset the increases. Water
treatment was primarily impacted by economic weakness in Europe and Brazil, and
container products suffered volume weakness in all regions, primarily as the
result of competitive pressures.
Pretax earnings from health care businesses rose 26 percent to $43.7
million. Dialysis services benefited from continuing strong performance in the
U.S. as well as sharply higher international results. Earnings from the
homecare division also were strong, as it continues to benefit from growth in
base business as well as from recent strategic
(more)
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acquisitions. These results more than offset increased costs in the medical
products group for compliance with FDA good manufacturing practices.
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W.R. Grace & Co.
COMPARATIVE RESULTS
($ Millions Except Per Share)
<TABLE>
<CAPTION>
Percent
1994 1993 Change
-------------- --------------- -------------
QUARTER ENDED MARCH 31
- ----------------------------------------
<S> <C> <C> <C>
Sales $ 1,076.8 $ 986.2 9.2 %
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Income Before Taxes $ 48.9 $ 53.7 (8.9)
Provision for Income Taxes 10.7 22.0 (51.4)
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Income From Continuing Op's $ 38.2 $ 31.7 20.5
Income From Discontinued Op's -- (3.4) 100.0
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Net Income $ 38.2 $ 28.3 35.0 %
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EARNINGS PER SHARE:
Continuing Operations $ .41 $ .35 17.1 %
Discontinued Operations -- (.04) 100.0
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Net Income $ .41 $ .31 32.3 %
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</TABLE>
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W. R. Grace & Co.
Operating Results
QUARTER ENDED MARCH 31
($ Millions Except Per Share)
<TABLE>
<CAPTION>
Percent
1994 1993 Change
-------------- -------------- --------------
<S> <C> <C> <C>
SALES
Specialty Chemicals $ 675.4 $ 648.1 4.2 %
Health Care 401.4 338.1 18.7
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Total $ 1,076.8 $ 986.2 9.2
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OPERATING INCOME
Specialty Chemicals $ 40.1 $ 41.7 (3.8)
Health Care 43.7 34.7 25.9
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Total Operating Income $ 83.8 $ 76.4 9.7
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OTHER EXPENSES
Interest/Financing $ (21.1) $ (19.9) (6.0)
Other (0.8) (2.8) 71.4
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Total Other Expenses $ (21.9) $ (22.7) 3.5
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Pretax Operating Earnings $ 61.9 $ 53.7 15.3
SPECIAL ITEMS
Gain on Sale of Interest in REG 27.0 -- ND
Provision for Environmental/Restructuring (40.0) -- ND
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Pretax Income from Continuing Operations $ 48.9 $ 53.7 (8.9)
Provision for Income Taxes 10.7 22.0 (51.4)
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Income from Continuing Operations $ 38.2 $ 31.7 20.5
Loss from Discontinued Operations -- (3.4) 100.0
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Net Income $ 38.2 $ 28.3 35.0 %
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EARNINGS PER SHARE:
Continuing Operations $ .41 $ .35 17.1 %
Net Income $ .41 $ .31 32.3 %
Average Number of Shares (Millions) 93.8 90.0
</TABLE>
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W.R. Grace & Co.
Specialty Chemicals Supplemental Data
1994 SALES AND PERCENT CHANGE VERSUS PRIOR PERIOD
(Dollars In Millions)
<TABLE>
<CAPTION>
QUARTER ENDED MARCH 31
Amount of Inc/(Dec) Due to:
---------------------------------
Sales
--------------------------------- Price/
1994 1993 Vol. Mix Exch. Total
--------------- --------------- -------- --------- ---------- ---------
<S> <C> <C> <C> <C> <C> <C>
Packaging $ 299.0 $ 287.5 6 % -- (2)% 4 %
Catalysts/Silicas 132.0 123.2 2 8 (3) 7
Construction 70.5 63.7 12 -- (1) 11
Container (a) 69.8 73.6 (5) 1 (1) (5)
Water Treatment 77.4 74.2 5 2 (3) 4
Other (b) 26.7 25.9 4 (1) -- 3
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Total $ 675.4 $ 648.1 4 % 2 % (2)% 4 %
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<FN>
(a) Includes Specialty Polymer Compounds. 1993 restated sales
are as follows:
1st Qtr. $ 73.6
2nd Qtr. 79.0
3rd Qtr. 76.2
4th Qtr. 76.3
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Full Year $ 305.1
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(b) Includes Thermal & Emission Control Systems.
</TABLE>
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W.R. Grace & Co.
GEOGRAPHIC DATA
(Dollars In Millions)
<TABLE>
<CAPTION>
QUARTER ENDED MARCH 31
Pretax
Sales Operating Income
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1994 1993 1994 1993
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<S> <C> <C> <C> <C>
North America $ 734 $ 661 $ 66 $ 56
Europe 225 222 9 6
Latin America 46 38 - 5
Asia Pacific 72 65 9 9
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Total $1,077 $986 $ 84 $ 76
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</TABLE>
