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GRACE SECOND QUARTER OPERATING EARNINGS ROSE 11 PERCENT BEFORE ONE-TIME CHARGE FOR ENERGY DIVESTMENT

 GRACE SECOND QUARTER OPERATING EARNINGS ROSE 11 PERCENT
 BEFORE ONE-TIME CHARGE FOR ENERGY DIVESTMENT
 BOCA RATON, Fla., July 23 /PRNewswire/ -- W. R. Grace & Co. (NYSE: GRA) reported an increase of 11 percent in net operating earnings in the 1992 second quarter, before a one-time after-tax charge of $163.1 million resulting from the reporting of the company's oil and gas businesses as a discontinued operation and a provision for the estimated loss on their disposition. Operating results were buoyed by the continued strong contribution from Grace's health care segment, improved results from specialty chemicals and lower interest expense.
 Grace reported a net loss of $99.0 million or $1.11 per share in the second quarter ended June 30, 1992 compared with net income of $57.6 million or 66 cents per share a year ago. Excluding the 1992 nonrecurring charge related to its oil and gas business and a $3.5 million gain in 1991 from its strategic restructuring program, Grace's net operating earnings rose 11 percent to $64.1 million, or 72 cents per share, compared to $57.8 million, or 66 cents per share, recorded in the second quarter of 1991.
 Sales and revenues for the second quarter were off two percent to $1.37 billion due to the absence of sales from businesses sold in 1991. Excluding these units, sales and revenues increased 10 percent.
 Including one-time charges for discontinued operations, the first six months showed a net loss of $93.9 million, or $1.05 per share, compared with net income in the 1991 first half of $88.4 million or $1.02 per share. First half operating earnings were $89.1 million, a two percent decline from the $91.2 million posted for the 1991 first half. On a per share basis, Grace's six-month operating earnings were 99 cents vs. $1.05. Sales and revenues fell six percent to $2.6 billion from $2.8 billion reported last year, again as the result of absence of sales from divested businesses.
 "Results in the second quarter reflect the inherent quality of our businesses and move the company a significant step further in our restructuring program," said J. Peter Grace, chairman and chief executive officer. In commenting on the outlook for the full year, he indicated that the second half traditionally provides the majority of Grace's annual operating earnings. "Our latest estimates suggest each of our core businesses should exceed results from last year's second half. On this basis, reaching our full year objective of at least 10 percent growth is attainable, but will be a challenge, particularly if the European economy does not recover from its present low level," Grace said.
 Operating income for specialty chemicals rose two percent in the quarter to $70.1 million. Contributors to the favorable results included chemical intermediates, catalysts and packaging, partly offset by declines in European water treatment and process chemicals and the non-U.S. construction products business. Sales and revenues of specialty chemicals were $855 million, an increase of four percent over the 1991 quarter.
 Health care continued its record of quarterly improvements with a 25 percent increase in operating income to $25.6 million on a 19 percent rise in sales and revenues to $309 million.
 As a result of continuing restructuring activities, the "Other Businesses" segment is composed primarily of Grace Cocoa and Colowyo Coal. Improvements in second quarter sales and operating income resulted from the inclusion of 100 percent of Colowyo's results in 1992 vs. 50% in 1991. Additionally, the resolution of a Colowyo customer bankruptcy in the 1992 second quarter provided for higher sales prices. These improvements were partly offset by a decline in both sales and earnings of Grace Cocoa, primarily due to volume softness, albeit at a lesser rate than in the 1992 first quarter.
 Grace is the world's largest specialty chemicals company with a leadership position in health care.
 W. R. Grace & Co.
 Comparative Results
 ($ Millions Except Per Share)
 Percent
 1992 1991 Change
 SECOND QUARTER
 Sales and Revenues $ 1,370.8 $ 1,401.3 (2.2)
 Income Before Taxes $ 111.8 $ 100.9 10.8
 Income Taxes 44.5 39.2 13.5
 Income Before
 Minority Interest $ 67.3 $ 61.7 9.1
 Minority Interests (3.2) (0.4) (700.0)
 Income From
 Continuing Ops $ 64.1 $ 61.3 4.6
 Loss From
 Discontinued Ops (163.1) (3.7) (999.9)+
 Net (Loss)/Income $ (99.0) $ 57.6 (271.9)
 Primary Earnings/(Loss) Per Share:
 Continuing
 Operations $ .72 $ .70 2.9
 Total $ (1.11) $ .66 (268.2)
 Fully Diluted Earnings/(Loss)
 Per Share:
 Continuing
 Operations $ .67 $ .67 0.0
 Total $ (0.92) $ .63 (246.0)
 YEAR TO DATE
 Sales and Revenues $ 2,603.5 $ 2,753.7 (5.5)
 Income Before Taxes $ 155.1 $ 154.6 0.3
 Income Taxes 62.3 59.3 5.1
 Income Before
 Minority Interest $ 92.8 $ 95.3 (2.6)
 Minority Interests (3.7) (0.6) (516.7)
 Income From
 Continuing Ops $ 89.1 $ 94.7 (5.9)
 Loss From
 Discontinued Ops (183.0) (6.3) (999.9)+
 Net (Loss)/Income $ (93.9) $ 88.4 (206.2)
 Primary Earnings/(Loss) Per Share:
 Continuing
 Operations $ .99 $ 1.09 (9.2)
 Total $ (1.05) $ 1.02 (202.9)
 Fully Diluted Earnings/(Loss)
 Per Share:
 Continuing
 Operations $ .96 $ 1.06 (9.4)
 Total $ (0.82) $ .99 (182.8)
 -0- 7/23/92
 /CONTACT: Chuck Suits of W. R. Grace & Co., 407-326-2600 or 800-GRACE99/
 (GRA) CO: W. R. Grace & Co. ST: Florida IN: CHM SU: ERN


JB-AW -- FL006 -- 2305 07/23/92 09:14 EDT
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Date:Jul 23, 1992
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