November 06, 2018

  • 3Q18 Net sales growth of 4.9%; Net Sales, Constant Currency up 7.2%*
  • 3Q18 Net income from continuing operations of $7.2 million
  • 3Q18 Diluted earnings per share from continuing operations of $0.10
  • 3Q18 Adjusted EPS* growth of 54.5% to $0.34
  • 3Q18 Adjusted EBIT* growth of 9.7% to $39.7 million
  • Updating 2018 financial guidance

CAMBRIDGE, Mass., Nov. 06, 2018 (GLOBE NEWSWIRE) — GCP Applied Technologies Inc. (NYSE: GCP) today announced third quarter 2018 results.

Total GCP Applied Technologies
($ Millions)
3Q 2018 3Q 2017 % Change
Net sales $296.3 $282.4 4.9%
Net Sales, Constant Currency* $302.6 $282.4 7.2%
Gross margin 37.3% 37.9% (60) bps
Adjusted Gross Margin* 37.4% 38.1% (70) bps
Income (loss) from continuing operations attributable to GCP shareholders $7.2 $(18.1) NM
Net income (loss) attributable to GCP shareholders $25.4 $659.2 (96.1)%
Diluted EPS from continuing operations attributable to GCP shareholders $0.10 $(0.25) NM
Adjusted EPS* $0.34 $0.22 54.5%
Adjusted EBIT* $39.7 $36.2 9.7%
Adjusted EBIT Margin* 13.4% 12.8% 60 bps

Gregory E. Poling, GCP’s Chief Executive Officer, said, “We are pleased with our third quarter results, as GCP’s sales and earnings grew due to higher price and volumes as well as contributions from our bolt-on acquisitions and our cost reduction program.”

Poling continued, “Our Specialty Building Materials business performed well with good project work and strong price capture, resulting in improved gross margin and segment operating income. This quarter, we made progress repositioning our Specialty Construction Chemicals business. We are increasing the penetration of VERIFI®, focusing on higher margin admixture markets and technologies, and reducing our overall cost structure.”

Third Quarter 2018:

  • Net sales increased 4.9% and Net Sales, Constant Currency increased 7.2% due to growth in Specialty Construction Chemicals and Specialty Building Materials
  • Gross margin of 37.3% decreased 60 basis points as an increase in SBM’s gross margin was offset by a decline in SCC’s gross margin
  • Income from continuing operations attributable to GCP shareholders was $7.2 million compared to loss from continuing operations of $18.1 million in the third quarter of 2017.  The change was primarily due to lower expenses as a result of a loss recognized during the prior-year quarter on the deconsolidation of our Venezuela operations, partially offset by higher income taxes.
  • Adjusted EBIT of $39.7 million increased 9.7% primarily due to higher SBM segment operating income and lower corporate costs
Third Quarter Segment Performance
Specialty Construction Chemicals
($ Millions)
3Q 2018 3Q 2017 % Change
Net sales $165.4 $156.2 5.9%
Net Sales, Constant Currency* $171.5 $156.2 9.8%
Gross margin 32.5% 34.2% (170) bps
Segment operating income $12.7 $15.7 (19.1)%
Segment operating margin 7.7% 10.1% (240) bps
  • Net sales increased 5.9% and Net Sales, Constant Currency increased 9.8% due to higher volumes in our Concrete and Cement businesses. Volumes increased despite being negatively impacted in September by wet weather and storm-related disruptions in North America and Asia Pacific, as well as planned exits from certain admixture markets.
  • Gross margin declined 170 basis points as price increases were offset by raw material inflation, increases in logistics costs and volatile foreign exchange rates in certain emerging markets
  • Segment operating margin decreased 240 basis points primarily due to lower gross margin
Specialty Building Materials
($ Millions)
3Q 2018 3Q 2017 % Change
Net sales $130.9 $126.2 3.7%
Net Sales, Constant Currency* $131.1 $126.2 3.9%
Gross margin 43.6% 42.9% 70 bps
Segment operating income $34.3 $30.1 14.0%