W.R. Grace & Co.?s North American sales might decrease as its bankruptcy expenses increase, but the Columbia-based chemicals firm has still proven to be quite profitable for investors in 2007.
Grace last week reported third-quarter financial results, saying earnings fell to $16.7 million from $18.4 million in the same period a year ago. The company said earnings were negatively affected by bankruptcy expenses ? Grace has operated in bankruptcy reorganization since 2001 ? asbestos claims and other matters.
Grace spent $21.3 million on bankruptcy expenses in the quarter, up from $12 million in the third quarter of 2006.
The company last week also agreed to pay $17.9 million to settle eight asbestos property-damage claims, including $14.5 million to the Port of Seattle.
Sales for the third quarter were $783.1 million, a 5.6 percent increase from last year, when revenue was $741.4 million. Though North American sales fell by 8 percent in the quarter, overall sales increased 6 percent, as Grace?s international business grows.
Even with expenses increasing, Grace?s share price has increased more than 53 percent since the beginning of the year.
W.R. Grace is part of The Examiner Top 10, a portfolio of some of the largest publicly traded companies in the Baltimore region.
The Associated Press contributed to this article.
