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GRACE TO ADOPT ACCOUNTING CHANGES; PLANS PROVISION FOR FUMED SILICA PLANT

 GRACE TO ADOPT ACCOUNTING CHANGES;
 PLANS PROVISION FOR FUMED SILICA PLANT
 BOCA RATON, Fla., Sept. 16 /PRNewswire/ -- W. R. Grace & Co. (NYSE: GRA) said today that it plans to record one-time charges in the third quarter to adopt FAS 106 and to provide for the expected loss of value in its fumed silica plant in Belgium.
 Grace has elected to adopt Statement of Financial Accounting Standards No. 106 (FAS 106) -- Employers' Accounting for Postretirement Benefits Other Than Pensions -- in the 1992 third quarter, effective Jan. 1, 1992, and will record a one-time provision of approximately $190 million (after tax benefits) as the cumulative effect of the accounting change. Future annual expense resulting from compliance with FAS 106 is expected to be substantially reduced as a result of modifications, to become effective in 1993, to Grace's medical plans. The adoption of FAS 106 will not affect Grace's cash flows, because Grace intends to continue paying the costs of postretirement benefits as they are incurred.
 Grace also expects to record a one-time provision of up to $140 million after taxes in connection with its fumed silica plant in Puurs, Belgium, which recently has been temporarily idled. One of the critical raw material suppliers to Grace's plant was effectively denied a previously promised permit for by-product disposal, resulting in the shutdown of the supplier's plant. As a result, the operation of Grace's plant would require Grace to seek other suppliers and/or take other actions requiring significant additional investment.
 The expected provision would reflect the impairment of the plant's value and additional costs that may be incurred in case of a permanent shutdown. A permanent shutdown would substantially curtail Grace's future cash outlays (estimated to be $12 million after taxes for 1992), resulting in a positive effect on 1993 profitability. Grace is continuing to consider alternatives, including litigation, to recover damages.
 Grace is the world's largest specialty chemicals company with a leadership position in health care.
 -0- 9/16/92
 /CONTACT: Chuck Suits of W. R. Grace, 407-362-2600 or 800-GRACE99/
 (GRA) CO: W. R. Grace & Co. ST: Florida IN: CHM SU:


AW -- FL003 -- 9947 09/16/92 08:51 EDT
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Publication:PR Newswire
Date:Sep 16, 1992
Words:357
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