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GRACE EARNINGS RISE 9 PERCENT FOR THE FOURTH QUARTER AND 8 PERCENT FOR FULL YEAR

 GRACE EARNINGS RISE 9 PERCENT
 FOR THE FOURTH QUARTER AND 8 PERCENT FOR FULL YEAR
 BOCA RATON, Fla., Feb. 6 /PRNewswire/ -- W. R. Grace & Co. (NYSE: GRA) announced a 9 percent increase in net income for the 1991 fourth quarter and an 8 percent boost for all of 1991. A strong contribution from Grace's health care businesses and significant reductions in interest expense were responsible for the improvements, while specialty chemicals continued to provide the bulk of the earnings in each period.
 Net income for the fourth quarter ended December 31, 1991 was $80.6 million, or 91 cents per share, vs. $73.7 million, or 86 cents per share, reported in the 1990 quarter, increases of 9 percent and 6 percent, respectively. Results for the 1991 fourth quarter were favorably impacted by a 25 percent increase in health care earnings and a sharp decline in interest expense compared to the 1990 period.
 Both the 1991 and 1990 fourth quarters and full years were restated to eliminate the sales and revenues of Grace's distribution business, which is being treated as a discontinued operation due to the impending sale of the unit. On this basis, sales and revenues for the 1991 final three months amounted to $1.61 billion, a decline of 6 percent from $1.72 billion in the 1990 quarter. The decline was attributable to the absence of sales from Grace's feed and automotive chemicals units sold during 1991.
 For the full year 1991, Grace's net income rose 8 percent to $218.6 million, compared to $202.8 million in 1990. On a per share basis, earnings were $2.50 in 1991 vs. $2.36 in 1990, an increase of 6 percent. Gains in health care and lower interest expense positively impacted these results. Restated annual sales and revenues amounted to $6.05 billion in 1991, as compared to $5.98 billion for 1990, reflecting increases in health care and core specialty chemical units offset in part by the divestment of various non-strategic operations, which were not core to Grace's worldwide business strategy.
 Summing up Grace's fourth quarter and full year results, J. Peter Grace, chairman and chief executive officer, said: "Given the continued severe recessionary times being experienced worldwide, we are encouraged by the strength of Grace's core businesses in specialty chemicals and health care. We are also confident that Grace's new worldwide business strategy announced in November 1991 will lay the groundwork for earnings growth in 1992 and beyond."
 Operating income after taxes from Grace's specialty chemicals businesses in the 1991 fourth quarter, as well as the full year 1991, was essentially flat with last year's results. 1991 operating income amounted to $82.0 million for the quarter and $261.2 million for all of 1991. Significant improvements were registered in the fourth quarter and full year in Grace's fluid cracking catalyst business worldwide, as well as Grace's packaging and water treatment product lines. However, the economic downturn in certain industries, such as construction and graphic arts, had a dampening effect on Grace's results in other specialty chemical areas. Sales and revenues of specialty chemical products were lower in the fourth quarter and full year than the comparable 1990 periods, totaling $940.8 million and $3.5 billion, respectively. These declines were caused by the sale of non-strategic businesses during 1991.
 Grace health care operations posted a 25 percent increase in after-tax operating income for the fourth quarter of 1991, and a 24 percent rise for the full year -- to $22.4 million for the quarter and $80.1 million for the full year. Health care sales and revenues rose 15 percent in both the fourth quarter and full year, reaching $271.8 million in the quarter and surpassing $1.0 billion in annual sales for the first time.
 Grace's energy business sustained a loss of $0.8 million in the fourth quarter due to depressed oil and gas prices, which caused declines in both onshore and offshore drilling activity. Despite the industry malaise, operating income of $11.2 million was achieved for the full year 1991 as coal mining earnings exceeded 1990 results. Sales and revenues for the quarter showed a modest decline to $130.1 million, while on an annual basis, 1991 was flat with 1990 at $479 million.
 Grace's specialty businesses are undergoing significant restructuring as part of Grace's overall business strategy. On a restated basis, i.e., excluding Grace Distribution, the group posted $13.6 million and $44.2 million in operating income after taxes for the quarter and full year, respectively, on sales and revenues of $270.6 million and $1.0 billion. Divestment of major segments of this group is ongoing, with completion of the sale of its feed operations and Bekaert Textiles occurring in 1991 and Grace Distribution being treated as a discontinued operation due to its impending sale.
 W. R. GRACE & CO.
 RESULTS OF OPERATIONS
 FOURTH QUARTER AND FULL YEAR - 1991 VS 1990 (A)
 ($ MILLIONS, EXCEPT PER SHARE AMOUNTS)
 Fourth Quarter
 Percent
 1991 1990 (A) INC/(DEC)
 Sales and Revenues $1,613.3 $1,723.4 (6.4)pct.
 Operating Income
 Income Before Taxes $ 129.2 $ 108.6 19.0 pct.
 Income Taxes 50.7 32.6 55.5
 Income Before Minority
 Interests $ 78.5 $ 76.0 3.3 pct.
 Minority Interests 0.6 (3.4) ND
 Net Income from
 Continuing OP'S $ 79.1 $ 72.6 9.0 pct.
 Income/(Loss) from
 Discont'd OP'S 1.5 1.1 36.4
 Net Income $ 80.6 $ 73.7 9.4 pct.
 Earnings/(Loss) Per Share
 Continuing Operations $ 0.89 $ 0.85 4.7 pct.
 Discontinued Operations 0.02 0.01 100.0
 Total Earnings Per Share $ 0.91 $ 0.86 5.8 pct.
 Fully Diluted Earnings/
 (Loss) Per Share
 Continuing Operations $ 0.83 $ 0.83 -
 Discontinued Operations 0.02 0.01 100.0 pct.
 Total Fully Diluted EPS $ 0.85 $ 0.84 1.2 pct.
 (A) -- Restated for discontinued operations.
 W. R. GRACE & CO.
 RESULTS OF OPERATIONS
 FOURTH QUARTER AND FULL YEAR - 1991 VS 1990 (A)
 ($ MILLIONS, EXCEPT PER SHARE AMOUNTS)
 Full Year
 Percent
 1991 1990 (A) INC/(DEC)
 Sales and Revenues $6,049.1 $5,984.2 1.1 pct.
 Operating Income
 Income Before Taxes $ 358.7 $ 328.9 9.1 pct.
 Income Taxes 139.0 115.9 20.0
 Income Before Minority
 Interests $ 219.7 $ 213.0 3.1 pct.
 Minority Interests (0.5) (10.7) (95.3)
 Net Income from
 Continuing OP'S $ 219.2 $ 202.3 8.4 pct.
 Income/(Loss) from
 Discont'd OP'S (0.6) 0.5 (220.0)
 Net Income $ 218.6 $ 202.8 7.8 pct.
 Earnings/(Loss) Per Share
 Continuing Operations $ 2.51 $ 2.35 6.8 pct.
 Discontinued Operations (0.01) 0.01 (200.0)
 Total Earnings Per Share $ 2.50 $ 2.36 5.9 pct.
 Fully Diluted Earnings/
 (Loss) Per Share
 Continuing Operations $ 2.41 $ 2.32 3.9 pct.
 Discontinued Operations (0.01) 0.01 (200.0)
 Total Fully Diluted EPS $ 2.40 $ 2.33 3.0 pct.
 (A) -- Restated for discontinued operations.
 -0- 2/6/92
 /CONTACT: Chuck Suits of W. R. Grace & Co., 407-263-2600 or 800-GRACE99/
 (GRA) CO: W. R. Grace & Co. ST: Florida IN: CHM SU: ERN


JJ-AW -- FL009 -- 7734 02/06/92 12:27 EST
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Date:Feb 6, 1992
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