W.R. Grace & Co. (NYSE:GRA) Q2 2020 Earnings Conference Call - Final Transcript

Jul 30, 2020 • 09:00 am ET


W.R. Grace & Co. (NYSE:GRA) Q2 2020 Earnings Conference Call - Final Transcript


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Ladies and gentlemen, thank you for standing by, and welcome to the W.R. Grace Second Quarter 2020 Earnings Conference Call. [Operator Instructions]

I would now like to hand the conference over to your speaker today, Jeremy Rohen, Vice President, Investor Relations. Thank you. Please go ahead, sir.

Jeremy F. Rohen

Thank you, Raquel. Good morning, everyone, and thank you for joining us today for Grace's Second Quarter 2020 Earnings Call. With me this morning is Hudson La Force, our President and Chief Executive Officer; and Bill Dockman, our Senior Vice President and Chief Financial Officer. Our earnings release and presentation are posted on our website under the Investors section at grace.com. Please note that some of our comments today will contain forward-looking statements based on our current view of our businesses and actual future results may differ materially. Please see our recent SEC filings, which identify the principal risks and uncertainties that could affect future performance. We will discuss certain non-GAAP financial measures, which are described in more detail in this morning's earnings materials. Reconciliations of non-GAAP financial measures and other associated disclosures are contained in our earnings materials and posted on our website. This morning, Hudson will discuss Q2 highlights and our views on Q3 and the underlying long-term strength of our businesses. Bill will provide an overview of our financial results and our Q3 planning assumptions. We'll then open the call for questions.

So with that, please turn to slide four in our earnings presentation, and I'll turn the call over to Hudson.

Hudson La Force

Thank you, Jeremy. Good morning, everyone. I hope you and your families are all safe and healthy. We're proud that our technology plays a role in the pandemic response, and I want to acknowledge the contributions our teams are making during this challenging time. Grace's specialty silicas provide critical functionality in COVID-19 diagnostic test kits, and we expect to supply material for tens of millions of tests this year. Customers using our UNIPOL polypropylene process technologies and catalysts, our manufacturing materials for medical supplies, including masks and ventilator valves, and our employees and foundation have given generously to those in need. We're grateful to be able to help our communities at this time. Please turn to slide five. I'm very pleased with how our teams are managing the unique challenges of the pandemic and recession. They acted early and effectively to fully implement our pandemic response, including significant new safety protocols throughout our global operations. Our workforce remains safe and healthy, and we have experienced no business continuity issues in our global operations or supply chain. Q2 sales and earnings were better than we expected. Although end demand was down significantly in almost all our markets, our customers did not adjust their inventories as quickly as we anticipated. Our value selling and commercial excellence efforts continue to be robust, and our technical teams continue to work closely with customers to deliver the full value of our technologies. In April, we outlined our plans to mitigate the economic effects of