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<PAGE>
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): July 26, 1994
-------------
W. R. GRACE & CO.
--------------------------------------------------------
(Exact name of registrant as specified in its charter)
New York 1-3720 13-3461988
- - ---------------- ------------------ -------------------
(State or other (Commission File (IRS Employer
jurisdiction of Number) Identification No.)
incorporation)
One Town Center Road, Boca Raton, Florida 33486-1010
----------------------------------------------------
(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code: 407/362-2000
------------
<PAGE>
Item 5. OTHER EVENTS.
On July 26, 1994, W. R. Grace & Co. ("Company") announced its
consolidated results of operations for the quarter ended June 30, 1994. The
Company's July 26, 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 July 26, 1994 press release and accompanying financial
and statistical data are filed as an exhibit hereto.
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<PAGE>
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.
-----------------------------------
(Registrant)
By /s/Richard N. Sukenik
--------------------------------
Richard N. Sukenik
Vice President and Controller
Dated: July 26, 1994
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<PAGE>
W. R. GRACE & CO.
Current Report on Form 8-K
EXHIBIT INDEX
Exhibit No. Description
- - ----------- -----------
99.1 Press Release dated July 26, 1994 and accompanying financial
and statistical data
<PAGE>
GRACE REPORTS 17 PERCENT INCREASE IN SECOND QUARTER PER
SHARE OPERATING EARNINGS BEFORE REINSTATED ASBESTOS CHARGE
BOCA RATON, Fla., July 26, 1994 -- W. R. Grace & Co. reported an
increase of 17 percent in per share net operating earnings for the second
quarter of 1994, before a reinstated $200 million after-tax charge for asbestos
litigation.
Grace's net operating earnings per share were 70 cents in the current
quarter, compared to 60 cents per share a year ago. Including the asbestos
charge, the Company reported a net loss of $134.3 million or $1.43 per share in
the second quarter of 1994, compared to a net loss of $51.1 million or 57 cents
per share a year ago. The 1993 net loss reflected an after-tax charge of $105
million related to discontinued operations.
Sales for the second quarter rose 13 percent to $1,237 million, compared
to $1,094 million a year ago.
"Improved operating earnings were achieved by both specialty chemicals
and health care, primarily as the result of strong volume gains, and every
region was a solid contributor," said J. P. Bolduc, president and chief
(more)
<PAGE>
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executive officer. "Consistent with our focus on delivering strong, sustainable
earnings growth from our core businesses, we remain dedicated to the process of
lowering costs and improving productivity, and we are continuing to absorb costs
associated with these efforts. These activities will both strengthen our
competitive position and improve the quality of results for the future," he
added.
For the first six months of 1994, operating earnings per share were
$1.10, a 16 percent increase from the $.95 per share posted for the 1993 first
half. Including the special charges in both periods, the first half showed a
net loss of $96.1 million or $1.03 per share, compared with a net loss in the
1993 first half of $22.8 million or 26 cents per share. Six months sales rose
11 percent to $2,314 million from $2,080 million reported last year.
Pretax earnings from specialty chemicals rose 18 percent to $79.0
million in the second quarter in spite of a $6 million provision for additional
costs associated with streamlining European operations. Packaging,
construction, catalysts and silica products, and water treatment all contributed
to the increased earnings based on volume gains from nearly every region.
Container earnings were essentially flat.
(more)
<PAGE>
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Pretax earnings from health care businesses rose 24 percent to $57.9
million with strong support from both domestic and international dialysis
services as well as the homecare division. The medical products group continued
below year-ago levels, but improved versus the previous quarter.
Grace is the world's largest specialty chemicals company and holds a
leadership position in specialized health care.
- 0 -
<PAGE>
W. R. Grace & Co.
Comparative Results
----------------------------------
($ Millions Except Per Share)
<TABLE>
<CAPTION>
Percent
1994 1993 Change
QUARTER ENDED JUNE 30 ---------------- ---------------- ------------
- - ---------------------------------------------
- - ---------------------------------------------
<S> <C> <C> <C>
Sales $ 1,236.9 $ 1,094.1 13.1 %
---------------- ----------------
---------------- ----------------
(Loss)/Income Before Taxes $ (206.6) (a) $ 94.1 (319.6)
(Benefit)/Provision for Income Taxes (72.3) 40.2 (279.9)
---------------- ----------------
(Loss)/Income From Continuing Op's $ (134.3) $ 53.9 (349.2)
Loss From Discontinued Op's -- (105.0) 100.0
---------------- ----------------
Net Loss $ (134.3) $ (51.1) 162.8 %
---------------- ----------------
---------------- ----------------
(LOSS)/EARNINGS PER SHARE:
Continuing Operations $ (1.43) (b) $ .60 (338.3)%
Discontinued Operations -- (1.17) 100.0
---------------- ----------------
Total $ (1.43) $ (.57) 150.9 %
---------------- ----------------
---------------- ----------------
SIX MONTHS ENDED JUNE 30
- - ---------------------------------------------
- - ---------------------------------------------
Sales $ 2,313.7 $ 2,080.3 11.2 %
---------------- ----------------
---------------- ----------------
(Loss)/Income Before Taxes $ (157.7) (a) $ 147.8 (206.7)
(Benefit)/Provision for Income Taxes (61.6) 62.2 (199.0)
---------------- ----------------
(Loss)/Income From Continuing Op's $ (96.1) $ 85.6 (212.3)
Loss From Discontinued Op's -- (108.4) 100.0
---------------- ----------------
Net Loss $ (96.1) $ (22.8) 321.5%
---------------- ----------------
---------------- ----------------
(LOSS)/EARNINGS PER SHARE:
Continuing Operations $ (1.03) (b) $ .95 (208.4)%
Discontinued Operations -- (1.21) 100.0
---------------- ----------------
Total $ (1.03) $ (.26) 296.2 %
---------------- ----------------
---------------- ----------------
<FN>
(a) Includes a pretax provision for asbestos insurance reduction of $316.0
($200.0 after tax).
(b) EPS before asbestos charge is $.70 and $1.10 for the 2nd quarter
and year-to-date, respectively.
</TABLE>
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<PAGE>
W. R. Grace & Co.
Operating Results
Quarter Ended June 30
---------------------
($ Millions Except Per Share)
<TABLE>
<CAPTION>
Percent
1994 1993 Change
-------------- ------------- -------------
<S> <C> <C> <C>
SALES
Specialty Chemicals $ 782.9 $ 729.9 7.3 %
Health Care 454.0 364.2 24.7
-------------- -------------
Total Sales $ 1,236.9 $ 1,094.1 13.1
-------------- -------------
-------------- -------------
OPERATING INCOME
Specialty Chemicals $ 79.0 $ 66.8 18.3
Health Care 57.9 46.7 24.0
-------------- -------------
Total Operating Income $ 136.9 $ 113.5 20.6
-------------- -------------
OTHER EXPENSES
Interest/Financing $ (24.6) $ (21.4) 15.0
Other (2.9) 2.0 245.0
-------------- -------------
Total Other Expenses $ (27.5) $ (19.4) 41.8
-------------- -------------
Pretax Operating Earnings $ 109.4 $ 94.1 16.3
Provision for Income Taxes 43.7 40.2 8.7
-------------- -------------
Net Operating Income $ 65.7 $ 53.6 21.9
Provision for Asbestos Insurance Reduction (200.0) -- ND
-------------- -------------
Net (Loss)/Income from Continuing Operations $ (134.3) $ 53.6 (349.2)
Loss from Discontinued Operations -- (105.0) 100.0
-------------- -------------
Net Loss $ (134.3) $ (51.1) 162.8 %
-------------- -------------
-------------- -------------
EARNINGS/(LOSS) PER SHARE:
From Operations $ .70 $ .60 16.7 %
Continuing Operations $ (1.43) $ .60 (338.3)%
Net Loss $ (1.43) $ (.57) 150.9 %
Average Number of Shares (Millions) 93.9 90.2
</TABLE>
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<PAGE>
W. R. Grace & Co.
Operating Results
Six Months Ended June 30
------------------------
($ Millions Except Per Share)
<TABLE>
<CAPTION>
Percent
1994 1993 Change
--------------- --------------- --------------
<S> <C> <C> <C>
SALES
Specialty Chemicals $ 1,458.3 $ 1,378.0 5.8 %
Health Care 855.4 702.3 21.8
--------------- ---------------
Total Sales $ 2,313.7 $ 2,080.3 11.2
--------------- ---------------
--------------- ---------------
OPERATING INCOME
Specialty Chemicals $ 119.1 $ 108.5 9.8
Health Care 101.6 81.4 24.8
--------------- ---------------
Total Operating Income $ 220.7 $ 189.9 16.2
--------------- ---------------
OTHER EXPENSES
Interest/Financing $ (45.7) $ (41.3) 10.7
Other (3.7) (0.8) 362.5
--------------- ---------------
Total Other Expenses $ (49.4) $ (42.1) 17.3
--------------- ---------------
Pretax Operating Earnings Before Special Items $ 171.3 $ 147.8 15.9
SPECIAL ITEMS
Gain on Sale of Interest in REG 27.0 -- ND
Provision for Environmental/Restructuring $ (40.0) -- ND
--------------- ---------------
Pretax Operating Earnings $ 158.3 $ 147.8 7.1
Provision for Income Taxes 54.4 62.2 (12.5)
--------------- ---------------
Net Operating Income $ 103.9 $ 85.6 21.4
Provision for Asbestos Insurance Reduction (200.0) -- ND
--------------- ---------------
Net (Loss)/Income from Continuing Operations $ (96.1) $ 85.6 (212.3)
Loss from Discontinued Operations -- (108.4) 100.0
--------------- ---------------
Net Loss $ (96.1) $ (22.8) 321.5 %
--------------- ---------------
--------------- ---------------
EARNINGS/(LOSS) PER SHARE:
From Operations $ 1.10 $ .95 15.8 %
Continuing Operations $ (1.03) $ .95 (208.4)%
Net Loss $ (1.03) $ (.26) 296.2 %
Average Number of Shares (Millions) 93.8 90.1
</TABLE>
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<PAGE>
W. R. Grace & Co.
Specialty Chemicals Supplemental Data
1994 Sales and Percent Change Versus Prior Period
-------------------------------------------------
(Dollars In Millions)
QUARTER ENDED JUNE 30
<TABLE>
<CAPTION>
Amount of Inc/(Dec) Due to:
---------------------------
Sales
------------------------- Price/
1994 1993 Vol. Mix Exch. Total
----------- ------------ -------- ---------- --------- --------
<S> <C> <C> <C> <C> <C> <C>
Packaging $ 331.0 $ 308.2 10 % (1)% (2)% 7 %
Catalysts/Silicas 152.6 145.0 5 2 (2) 5
Construction 100.2 86.1 17 -- (1) 16
Container (a) 82.5 79.0 7 (2) (1) 4
Water Treatment 88.7 84.7 8 -- (3) 5
Other (b) 27.9 26.9 6 (1) (1) 4
---------- ------------
Total $ 782.9 $ 729.9 9 % -- (2)% 7 %
---------- ------------
---------- ------------
<CAPTION>
SIX MONTHS ENDED JUNE 30
Amount of Inc/(Dec) Due to:
---------------------------
Sales
--------------------------- Price/
1994 1993 Vol. Mix Exch. Total
------------ ------------- -------- ------- -------- -----
<S> <C> <C> <C> <C> <C> <C>
Packaging $ 630.0 $ 595.7 8 % -- (2)% 6 %
Catalysts/Silicas 284.8 268.2 3 5 (2) 6
Construction 170.7 149.8 15 -- (1) 14
Container (a) 152.3 152.6 2 (1) (1) --
Water Treatment 166.1 158.9 7 1 (3) 5
Other (b) 54.6 52.8 5 (1) (1) 3
------------- -----------
Total $ 1,458.3 $ 1,378.0 7 % 1 % (2)% 6 %
------------- -----------
------------- -----------
<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
-----------
Full Year $ 305.1
-----------
-----------
(b) Includes Grace TEC Systems.
</TABLE>
-4-
<PAGE>
W. R. Grace & Co.
Geographic Data
---------------
(Dollars In Millions)
QUARTER ENDED JUNE 30
<TABLE>
<CAPTION>
Pretax
Sales Operating Income
---------------------------- ----------------------------
1994 1993 1994 1993
----------- ----------- ------------ ------------
<S> <C> <C> <C> <C>
North America $ 842 $ 728 $ 107 $ 86
Europe 252 247 9 (a) 13
Latin America 50 44 6 4
Asia Pacific 93 75 15 11
----------- ----------- ------------ ------------
Total $1,237 $1,094 $ 137 $ 114
----------- ----------- ------------ ------------
----------- ----------- ------------ ------------
<CAPTION>
SIX MONTHS ENDED JUNE 30
Pretax
Sales Operating Income
---------------------------- ----------------------------
1994 1993 1994 1993
----------- ----------- ------------ ------------
<S> <C> <C> <C> <C>
North America $ 1,576 $ 1,389 $ 173 $ 142
Europe 477 469 18 (a) 19
Latin America 96 82 6 9
Asia Pacific 165 140 24 20
----------- ----------- ------------ ------------
Total $2,314 $ 2,080 $ 221 $ 190
----------- ----------- ------------ ------------
----------- ----------- ------------ ------------
<FN>
(a) Includes costs of $6 million associated with streamlining certain European chemical operations.
</TABLE>
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