<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): October 27, 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 October 27, 1994, W. R. Grace & Co. ("Company") announced its
consolidated results of operations for the quarter ended September 30, 1994.
The Company's October 27, 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 October 27, 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
--------------------------------
Richard N. Sukenik
Vice President and Controller
Dated: October 27, 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 October 27, 1994 and accompanying
financial and statistical data
<PAGE>
W. R. Grace & Co.
One Town Center Road
Boca Raton, FL 33486
GRACE REPORTS 17 PERCENT RISE IN THIRD QUARTER
PER SHARE OPERATING EARNINGS
BOCA RATON, Fla., October 27, 1994 -- W. R. Grace & Co. reported net
operating earnings of 81 cents per share in the third quarter of 1994, an
increase of 17 percent over the 69 cents per share earned in the 1993 quarter.
Net income in the current quarter was $76 million, compared to a net loss of
$236 million in the year ago quarter, which included a $300 million after-tax
charge related to asbestos insurance coverage.
Sales for the third quarter rose 15 percent to $1.31 billion, compared
to $1.14 billion a year ago.
"The balanced earnings growth from both the specialty chemicals and
health care businesses that we saw in the second quarter continued this
quarter," said J. P. Bolduc, president and chief executive officer. "Volumes
are generally strong, operating margins are improving, European results for
specialty chemicals are recovering nicely, and internal cost control efforts are
having a favorable impact. Selected price increases are being implemented to
offset raw material cost pressures. In all, current trends indicate we will
deliver solid results for the full year," he said.
(more)
<PAGE>
For the first nine months of 1994, operating earnings per share were
$1.91, a 16 percent increase from the $1.64 per share posted for the 1993
period. Including special charges in both periods, the nine months of 1994
showed a net loss of $20 million or 22 cents per share, compared with a net loss
in the 1993 nine-month period of $259 million or $2.86 per share. Nine month
sales rose 13 percent to $3.62 billion from $3.22 billion reported last year.
Pretax earnings from specialty chemicals rose 13 percent to $91 million
in the third quarter, including $4 million of costs associated with additional
European streamlining activities. Excluding these costs, all product lines
contributed to the increase, led by very strong results in construction, water
treatment and paper process chemicals, and container. Quarterly results for
fluid cracking catalysts (FCC) were below year ago levels due to lower North
American volumes, but were more than offset by increases from polyolefin
catalysts, and silicas and adsorbents, plus strong FCC earnings in other
regions. Packaging showed moderate improvement, as higher European and Latin
American results were partly offset by cost pressures in North America.
Pretax earnings from health care businesses rose 23 percent to $66
million, with continued strength from both domestic and international dialysis
as well as the homecare division. Results from the medical products group
lagged the year ago quarter but rose sharply from the previous quarter.
Grace is the world's largest specialty chemicals company and holds a
leadership position in specialized health care.
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W. R. Grace & Co.
Comparative Results
($ Millions Except Per Share)
<TABLE>
<CAPTION>
Percent
1994 1993 Change
---------- ----------- ----------
QUARTER ENDED SEPTEMBER 30
<S> <C> <C> <C>
Sales $1,306.7 $1,136.1 15.0 %
--------- ----------
--------- ----------
Income/(Loss) Before Taxes $ 126.5 $ (366.6) (a) ND
Provision/(Benefit) for Income Taxes 50.5 (130.2) ND
--------- ----------
Net Income/(Loss) $ 76.0 $ (236.4) ND
--------- ----------
--------- ----------
EARNINGS/(LOSS) PER SHARE:
Total $ .81 $ (2.56) (b) ND
--------- ----------
--------- ----------
NINE MONTHS ENDED SEPTEMBER 30
Sales $3,620.4 $3,216.4 12.6 %
--------- ----------
--------- ----------
Loss Before Taxes $ (31.2) (a) $ (218.8) (a) 85.7
Benefit from Income Taxes (11.1) (68.0) (83.7)
--------- ----------
Loss From Continuing Ops $ (20.1) $ (150.8) 86.7
Loss From Discontinued Ops -- (108.4) 100.0
--------- ----------
Net Loss $ (20.1) $ (259.2) 92.2 %
--------- ----------
--------- ----------
LOSS PER SHARE:
Continuing Operations $ (.22) (b) $ (1.66) (b) 86.7 %
Discontinued Operations -- (1.20) 100.0
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Total $ (.22) $ (2.86) 92.3 %
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<FN>
(a) Includes a pretax provision for asbestos insurance reduction in 1994 of
$316.0 ($200.0 after tax) and in 1993 of $475.0 ($300.0 after tax).
(b) Earnings per share before provisions for asbestos insurance reductions are
$.69 for the 1993 3rd quarter and $1.91 and $1.64 for the 1994 and 1993
year-to-date results, respectively.
</TABLE>
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W. R. Grace & Co.
Operating Results
QUARTER ENDED SEPTEMBER 30
($ Millions Except Per Share)
<TABLE>
<CAPTION>
Percent
1994 1993 Change
-------- -------- ---------
<S> <C> <C> <C>
SALES
Specialty Chemicals $ 815.5 $ 734.7 11.0%
Health Care 491.2 401.4 22.4
-------- --------
Total Sales $1,306.7 $1,136.1 15.0
-------- --------
-------- --------
OPERATING INCOME
Specialty Chemicals $ 90.5 $ 80.4 12.6
Health Care 66.4 54.0 23.0
-------- --------
Total Operating Income $ 156.9 $ 134.4 16.7
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OTHER EXPENSES
Interest/Financing $ (30.2) $ (22.5) (34.2)
Other (0.2) (3.5) 94.3
-------- --------
Total Other Expenses $ (30.4) $ (26.0) (16.9)
-------- --------
Pretax Operating Earnings $ 126.5 $ 108.4 16.7
Provision for Income Taxes 50.5 44.8 (12.7)
-------- --------
Net Operating Income $ 76.0 $ 63.6 19.5
Provision for Asbestos Insurance Reduction -- (300.0) 100.0
-------- --------
Net Income/(Loss) $ 76.0 $ (236.4) ND
-------- --------
-------- --------
EARNINGS/(LOSS) PER SHARE:
From Operations $ .81 $ .69 17.4 %
Net Income/(Loss) $ .81 $ (2.56) ND
Average Number of Shares (Millions) 94.0 92.3
</TABLE>
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W. R. Grace & Co.
Operating Results
NINE MONTHS ENDED SEPTEMBER 30
($ Millions Except Per Share)
<TABLE>
<CAPTION>
Percent
1994 1993 Change
-------- --------- -------
<S> <C> <C> <C>
SALES
Specialty Chemicals $2,273.8 $2,112.7 7.6%
Health Care 1,346.6 1,103.7 22.0
-------- --------
Total Sales $3,620.4 $3,216.4 12.6
-------- --------
-------- --------
OPERATING INCOME
Specialty Chemicals $ 209.6 $ 188.9 11.0
Health Care 168.0 135.4 24.1
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Total Operating Income $ 377.6 $ 324.3 16.4
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OTHER EXPENSES
Interest/Financing $ (75.9) $ (63.8) (19.0)
Other (3.9) (4.3) 9.3
-------- --------
Total Other Expenses $ (79.8) $ (68.1) (17.2)
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Pretax Operating Earnings Before
Special Items $ 297.8 $ 256.2 16.2
SPECIAL ITEMS
Gain on Sale of Interest in REG 27.0 -- ND
Provision for Environmental/Restructuring (40.0) -- ND
-------- --------
Pretax Operating Earnings $ 284.8 $ 256.2 11.2
Provision for Income Taxes 104.9 107.0 2.0
-------- --------
Net Operating Income $ 179.9 $ 149.2 20.6
Provision for Asbestos Insurance Reduction (200.0) (300.0) 33.3
-------- --------
Net Loss from Continuing Operations $ (20.1) $ (150.8) 86.7
Loss from Discontinued Operations -- (108.4) 100.0
-------- --------
Net Loss $ (20.1) $ (259.2) 92.2%
-------- --------
-------- --------
EARNINGS/(LOSS) PER SHARE:
From Operations $ 1.91 $ 1.64 16.5%
Continuing Operations $ (.22) $ (1.66) 86.7%
Net Loss $ (.22) $ (2.86) 92.3%
Average Number of Shares (Millions) 93.9 90.8
</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)
<TABLE>
<CAPTION>
QUARTER ENDED SEPTEMBER 30
Amount of Inc/(Dec) Due to:
---------------------------
Sales
--------------------- Price/
1994 1993 Vol. Mix Exch. Total
------- ------ ------ ----- ------ ------
<S> <C> <C> <C> <C> <C> <C>
Packaging $350.9 $315.3 10% (1)% 2% 11%
Catalysts/Silicas 149.7 146.8 (2) 1 3 2
Construction 107.8 90.8 17 1 1 19
Container (a) 84.1 76.2 10 (3) 3 10
Water Treatment 96.6 85.6 10 1 2 13
Other (b) 26.4 20.0 28 3 1 32
------ ------
Total $815.5 $734.7 9% -- 2% 11%
------ ------
------ ------
<CAPTION>
NINE MONTHS ENDED SEPTEMBER 30
Amount of Inc/(Dec) Due to:
---------------------------
Sales
----------------------- Price/
1994 1993 Vol. Mix Exch. Total
-------- -------- ------ ------ ------ ------
<S> <C> <C> <C> <C> <C> <C>
Packaging $980.9 $911.0 9% (1)% -- 8%
Catalysts/Silicas 434.3 415.0 2 3 -- 5
Construction 278.5 240.6 16 -- -- 16
Container (a) 236.4 228.8 4 (1) -- 3
Water Treatment 262.7 244.5 7 1 (1) 7
Other (b) 81.0 72.8 11 -- -- 11
-------- --------
Total $2,273.8 $2,112.7 7% 1% -- 8%
-------- --------
-------- --------
<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>
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<PAGE>
W. R. Grace & Co.
GEOGRAPHIC DATA
(Dollars In Millions)
<TABLE>
<CAPTION>
QUARTER ENDED SEPTEMBER 30
Pretax
Sales Operating Income
---------------------- --------------------
1994 1993 1994 1993
-------- ------- ------ ------
<S> <C> <C> <C> <C>
North America $ 890 $ 779 $111 $113
Europe 265 230 24 (a) 7
Latin America 56 47 7 1
Asia Pacific 96 80 15 13
------ ------ ----- -----
Total $1,307 $1,136 $157 $134
------ ------ ----- -----
------ ------ ----- -----
<CAPTION>
NINE MONTHS ENDED SEPTEMBER 30
Pretax
Sales Operating Income
---------------------- --------------------
1994 1993 1994 1993
-------- ------- ------ ------
<S> <C> <C> <C> <C>
North America $2,466 $2,168 $284 $255
Europe 742 699 42 (a) 26
Latin America 152 129 13 10
Asia Pacific 260 220 39 33
------ ------ ----- -----
Total $3,620 $3,216 $378 $324
------ ------ ----- -----
------ ------ ----- -----
<FN>
(a) Includes costs of $4 million and $10 million, for quarter and year-to-date,
respectively, associated with streamlining certain European chemical
operations.
</TABLE>
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