GCP Applied Technologies Reports Second Quarter 2017 Results
- Completed sale of Darex Packaging Technologies for $1.05 billion on July 3, 2017
- Acquired Stirling Lloyd, a specialty liquid waterproofing company
- Reaffirming 2017 full-year guidance
- 2Q17 Net sales up 1.1%; Net Sales, Constant Currency* up 4.7%
- 2Q17 Net income from continuing operations of $1.3 million; Adjusted EBIT* of $42.0 million
- 2Q17 Diluted EPS from continuing operations of $0.02; Adjusted EPS* of $0.23
CAMBRIDGE, MA - August 3, 2017 - GCP Applied Technologies Inc. (NYSE: GCP) today announced second quarter 2017 results.
Total GCP Applied Technologies
|2Q 2017||2Q 2016||% Change|
|Net Sales, Constant Currency*||$297.3||$284.0||4.7%|
|Gross margin||40.1%||41.7%||(160) bps|
|Adjusted Gross Margin*||40.9%||41.8%||(90) bps|
|Income from continuing operations attributable to GCP shareholders||$1.3||$18.6||(93.0)%|
|Adjusted EBIT Margin*||14.6%||15.6%||(100) bps|
*Non-GAAP financial measures. See the tables herein for important information regarding these measures and a reconciliation to the most comparable GAAP measures.
“We are pleased with our accomplishments in the second quarter. We completed the sale of Darex on July 3, acquired Stirling Lloyd and initiated our restructuring and realignment plan,” said President and Chief Executive Officer Gregory E. Poling. “Additionally, our new product introductions are being well-received by customers. We are on track to meet our 2017 financial guidance.”
Second quarter 2017:
- Net sales increased 1.1% and Net Sales, Constant Currency* increased 4.7% primarily due to growth in cement additives and sales associated with our acquisitions of Halex and Stirling Lloyd
- Gross margin of 40.1% decreased 160 basis points due to increases in raw material costs and an inventory fair value adjustment relating to the acquisition of Stirling Lloyd, partially offset by higher pricing
- Adjusted EBIT* of $42.0 million declined 5.2% due to higher operating expenses and lower Adjusted Gross Profit
- Net income from continuing operations was $1.3 million compared to $18.6 million in the prior year period. The decrease was primarily due to increased restructuring expenses, acquisition-related costs and lower gross profit.