COLUMBIA, Md. (AP) — Chemical and building materials maker W. R. Grace & Co. said Thursday that its second-quarter net income increased 20 percent, bolstered by strong pricing and growth in emerging markets for its materials technologies and construction products businesses.
Its adjusted results beat Wall Street's view, but revenue for the second quarter and 2013 forecast came in below Wall Street's expectations.
The stock fell in afternoon trading.
The Columbia, Md., company earned $82.8 million, or $1.07 per share, for the three months ended June 30. A year earlier it earned $69.3 million, or 90 cents per share.
Removing restructuring costs and other items, earnings were $1.12 per share, compared with adjusted earnings of $1.14 per share in the prior-year period.
This topped the $1.08 per share analysts polled by FactSet expected.
Revenue dropped 3 percent to $802.8 million from $826.7 million, stung by lower pricing and unfavorable foreign currency translation. Wall Street was looking for higher revenue of $816.9 million.
Shares of W. R. Grace dropped $5.67, or 6.8 percent, to $78.11. The stock has traded in a 52-week range of $50.08 to $87.56.
Sales for the catalysts technologies division fell mostly on lower pricing, lower sales volumes and unfavorable currency translation. Materials technologies' sales rose 2 percent on increased prices and higher sales volumes, with emerging market sales up 4.5 percent. At the construction products unit, sales climbed on increased sales volumes and higher prices, with sales in emerging markets up 11.5 percent.
W. R. Grace said it expects 2013 consolidated revenue of about $3.1 billion. Analysts expect $3.2 billion in revenue.