The W.R. Grace & Co. has reported losses for the first quarter of 2009. Part of the blame can be attributed to the ongoing federal trial against the company and five former executives, who have been accused of knowingly exposing the town of Libby, Montana to deadly asbestos during the company’s mining ventures.
Many residents of Libby have since developed asbestos-related diseases, including mesothelioma.
Grace is also hurting from Chapter 11 expenses, lower volumes, and poor exchange rates.
W.R. Grace & Co, a specialty chemicals company, filed for bankruptcy in 2001, in order to resolve asbestos personal injury and property damage claims. The company received approval from a U.S. bankruptcy court to solicit votes for its reorganization plan in March of this year.
For the quarter ending March 31, the company’s net loss was $38.9 million, or 54 cents a share, compared with a net income of $17.7 million, or 24 cents a share, a year earlier.
W.R. Grace has cut jobs, and has plans to further reduce costs.
Shares of W.R. Grace closed at $7.67 Thursday on the New York Stock Exchange.
The federal trial against the company is ongoing. The prosecution wrapped up their case earlier this week, and court is expected to resume on Monday.
Last week, lawyers for Grace argued that the case should be thrown out, due to suspected perjury and preferential treatment given to a government witness who was a former Grace employee who left the company under bitter circumstances.
The court has been in recess since Tuesday, as the presiding judge is out of state.