Grace comments on the effect of Middle East feedstock disruption
W. R. Grace & Co. commented on the fourth quarter and full-year 2019 earnings effect of the temporary feedstock disruptions resulting from the September 14, 2019, attacks on oil and gas production facilities in the Middle East.
“Following the September attacks, certain of our petrochemical and refining customers experienced reduced feedstock supply and temporarily reduced their operating rates and catalyst usage,” said Hudson La Force, Grace’s President and Chief Executive Officer. “Over the past two weeks, we have worked diligently with our customers to determine the immediate and ongoing impact of the incident on their operations. Based on information available to us at this time, including discussions with customers and the public statements of officials in the region, we expect some impact to sales and earnings in the fourth quarter, but we are confident this impact will be temporary. Importantly, the underlying fundamentals of our business in the region remain positive.”
Based on order cancellations and expected order delays resulting from this incident, the Company expects the effect on fourth quarter and full-year 2019 earnings to be between $7 and $8 million. We do not expect this to have any impact to third quarter earnings.
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