Net income for the second quarter, which ended June 30, was $75.8 million, or $1 per share, compared to $51 million, or 69 cents per share, the previous year.
"I am pleased with how well the Grace team is executing in today's dynamic operating environment," Grace CEO Fred Festa said in a statement. "The investments we have made are making a significant difference to our results, giving us the confidence to increase our outlook for 2011."
The company also said the company's Chapter 11 bankruptcy proceedings are still pending in court.
Grace raised its sales outlook for the year. It expects sales of $3.25 billion to $3.30 billion. In February it had expected sales of $2.85 billion to $2.95 billion.