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GRACE THIRD QUARTER OPERATING EARNINGS UP NINE PERCENT BEFORE ONE-TIME CHARGE FOR IDLED PLANT

 GRACE THIRD QUARTER OPERATING EARNINGS UP NINE
 PERCENT BEFORE ONE-TIME CHARGE FOR IDLED PLANT
 BOCA RATON, Fla., Oct. 26 /PRNewswire/ -- W. R. Grace & Co. (NYSE: GRA) reported a net loss of $82.1 million, or 92 cents per share, in the third quarter ended Sept. 30, 1992 compared with net income of $49.6 million, or 57 cents per share, a year ago. Excluding a previously announced $140 million after-tax charge related to its fumed silica plant in Belgium, Grace's net operating earnings rose nine percent to $58.6 million, or 65 cents per share, compared to $53.9 million, or 61 cents per share, recorded in the third quarter of 1991. Operating results continued to be buoyed by strong results in the company's health care segment and lower interest expense.
 Sales and revenues for the third quarter rose seven percent to $1.43 billion. The prior year quarter included $81 million from subsequently divested businesses, but did not include $26.2 million of Colowyo coal sales since it was reported on the equity method for the first nine months of 1991.
 The first nine months of 1992 showed a net loss of $370.4 million, or $4.14 per share, due to one-time after tax charges, primarily $190 million for the adoption of FAS 106, $155 million for treating its oil and gas businesses as discontinued operations, and $140 million for the Belgian plant. The loss compares with net income of $138.0 million, or $1.59 per share, in the comparable 1991 period. Excluding nonrecurring charges, net operating earnings for the 1992 nine months were $147.7 million, an increase of 2 percent compared to $145.1 million posted in 1991, or $1.65 per share in 1992 vs. $1.67 in the prior year. Sales and revenues declined 1 percent to $4.0 billion from $4.1 billion reported last year, again as the result of absence of sales from divested businesses.
 In announcing the third quarter results, J. P. Bolduc, president and chief operating officer, said, "Continuing weak economic conditions, particularly in Europe, will make it extremely difficult to achieve our goal of 10 percent growth in operating earnings for the full year. However, we remain encouraged by the underlying strength of our core businesses as evidenced by the 11 percent growth in operating earnings in the second quarter followed by the nine percent improvement this quarter."
 In the quarter, operating income from specialty chemicals rose 2 percent to $69.1 million. The increase was primarily attributable to improvement in chemical intermediates, catalysts and packaging, partly offset by declines in the construction and specialty dryer businesses. Sales and revenues of specialty chemicals rose 11 percent to $883 million.
 Health care continued its strong growth trend, with a 29 percent increase in operating income to $27.8 million on a 23 percent rise in sales and revenues to $332 million. Dialysis services, medical products and home care all reported significant improvement.
 Grace's other businesses reported third quarter operating income of $7.4 million, down $1 million from the same period in 1991. Weaker results from Grace Cocoa and the company's minority investment in a Colombian paper mill were only partly offset by higher earnings from Colowyo. Earnings from Colowyo are included at 100 percent in the 1992 quarter compared to 50 percent for the year ago period.
 Grace is the world's largest specialty chemicals company with a leadership position in health care.
 W. R. GRACE & CO.
 Comparative Results
 ($ Millions Except Per Share)
 Percent
 1992 1991 Change
 THIRD QUARTER
 Sales and Revenues $ 1,431.0 $ 1,333.0 7.4
 (Loss)/Income Before
 Taxes $ (37.7) $ 88.8 (142.5)
 Income Taxes 44.5 34.7 28.2
 (Loss)/Income Before
 Minority Interests $ (82.2)(A) $ 54.1 (251.9)
 Minority Interests 0.1 (0.2) ND
 (Loss)/Income From
 Continuing Ops $ (82.1) $ 53.9 (252.3)
 Loss From Discontinued
 Ops -- (4.3) 100.0
 Net (Loss)/Income $ (82.1) $ 49.6 (265.5)
 Primary (Loss)/Earnings Per Share:
 Continuing Operations $ (.92) $ .61 (250.8)
 Total $ (.92) $ .57 (261.4)
 Fully Diluted (Loss)/Earnings Per Share:
 Continuing Operations $ (.92) $ .58 (258.6)
 Total $ (.92) $ .54 (270.4)
 YEAR TO DATE
 Sales and Revenues $ 4,034.5 $ 4,086.7 (1.3)
 Income Before Taxes $ 110.8 $ 243.4 (54.5)
 Income Taxes 104.6 94.0 11.3
 Income Before
 Minority Interests $ 6.2(A) $ 149.4 (95.9)
 Minority Interests (3.6) (0.8) (350.0)
 Income From Continuing
 Ops $ 2.6 $ 148.6 (98.3)
 Loss From Discontinued
 Ops (183.0) (10.6) (999.9)+
 Accounting Change -
 FAS 106 (190.0) -- ND
 Net (Loss)/Income $ (370.4) $ 138.0 (368.4)
 Primary Earnings/(Loss) Per Share:
 Continuing Operations $ .02 $ 1.71 (98.8)
 Accounting Change -
 FAS 106 $ (2.12) -- ND
 Total $ (4.14) $ 1.59 (360.4)
 Fully Diluted Earnings/(Loss) Per Share:
 Continuing Operations $ .02 $ 1.65 (98.8)
 Accounting Change -
 FAS 106 $ (2.12) -- ND
 Total $ (4.14) $ 1.54 (368.8)
 (A)-- 1992 includes a $140.0 provision which reflects the
 closure of the fumed silica plant.
 Reconciliation to Net Operating Earnings
 1992 1991
 Third Third Percent
 Quarter Quarter Change
 (Loss)/Income from
 Continuing Operations ($82.1) $53.9 (252.3)
 Add Back:
 Adjustment to Periodic
 Expense - FAS 106 0.7 -- ND
 Fumed Silica Plant
 Closure 140.0 -- ND
 $58.6 $53.9 8.7
 1992 1991 Percent
 YTD YTD Change
 (Loss)/Income from
 Continuing Operations $2.6 $148.6 (98.3)
 Add Back:
 Adjustment to Periodic
 Expense - FAS 106 5.1 -- ND
 Fumed Silica Plant
 Closure 140.0 -- ND
 Strategic Restructuring -- (3.5) 100.0
 $147.7 $145.1 1.8
 -0- 10/26/92
 /CONTACT: Chuck Suits of W. R. Grace & Co., 407-362-2600 or 800-GRACE99/
 (GRA) CO: W. R. Grace & Co. ST: Florida IN: CHM SU: ERN


SS-AW -- FL001 -- 4572 10/26/92 08:57 EST
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