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MOSCOW (MRC) -- W.R. Grace reports a
fourth-quarter loss of USD43.5 million, down from a net loss of USD28.3 million
in the year-ago quarter, as weak demand for transportation fuels amid the
COVID-19 pandemic continues to suppress demand for the company’s refinery
catalysts, reported Chemweek.
Results include a a pre-tax non-cash pension mark-to-market adjustment
of USD94.6 million. Adjusted earnings of USD0.88/share was down 32.8% YOY but
beat the analysts’ consensus estimate by two cents, as reported by Refinitiv
(New York). Net sales declined 6.8% YOY, to USD470.2
million
Catalyst Technologies operating income declined 33.6% YOY, to
USD88.8 million, while segment sales dipped 10.6% YOY, to USD348.7
million. Operating income declined primarily due to lower gross profit,
hurricane-related costs of approximately $8 million, and USD6.3 million lower
income from our ART joint venture, partially offset by lower operating expense.
The year-ago period also included USD8 million in business interruption
insurance recoveries. Sales declined primarily due to lower volumes, as well as
certain refiners switching to lower performance catalysts due to the pandemic.
“Global demand for transportation fuels and refinery operating rates have shown
steady improvement over the last two quarters but remain below pre-pandemic
levels,” Grace says.
Materials Technologies operating income increased
23.3% YOY, to USD29.1 million, on sales up 6.0%, to USD121.5 million. “Continued
strength in pharma/consumer end-markets (+21.2%) and stronger demand in coatings
(+10.8%) were partially offset by lower demand in chemical process end-markets
(-12.2%),” Grace says.
Looking ahead. Grace expects sales to grow 7-11%
over 2020, with growth accelerating in the second half of 2021. “We exited 2020
with sales, gross margins, and cash flow nearing pre-pandemic levels, and we are
planning for a strong recovery in 2021, especially in the second half of the
year,” says Hudson La Force, president and CEO. “We are encouraged by the
vaccine rollout, though we are closely watching the level of COVID-19 cases and
related economic indicators. We are well positioned to continue to capture
growth as the recovery progresses.”
As MRC informed
previously, in April 2018, W. R. Grace & Co. completed the USD416 million
acquisition of the Polyolefin Catalysts business of Albemarle
Corporation.
According to MRC's ScanPlast report,
Russia's estimated PE consumption totalled 2,220,640 tonnes in 2020, up by 2%
year on year. Only shipments of low density polyethylene (LDPE) and high density
polyethylene (HDPE) increased. At the same time, polypropylene (PP) shipments to
the Russian market reached 1 240,000 tonnes in 2020 (calculated using the
formula: production, minus exports, plus imports, excluding producers'
inventories as of 1 January, 2020). Supply of exclusively PP random copolymer
increased.
A leader in polyolefin catalysts and licensing, W.R. Grace has
the world’s broadest portfolio of polypropylene and polyethylene catalyst
technologies used to produce thermoplastic resins for a variety of applications.
A leading innovator and strategic partner to its customers, Grace supplies
catalyst solutions for all polyolefin processes, as well as polypropylene
process technology and process controls. Grace employs approximately 3,700
people in over 30 countries. |
