UPDATE 1-W.R. Grace posts Q1 loss

* Q1 shr loss $0.54 vs yr-ago profit of $0.24/shr

* Q1 sales fall 10 pct to $682.1 mln * Says sees restructuring expenses in 2009

April 23 (Reuters) - Specialty chemicals company W.R. Grace & Co (GRA.N) swung to a first-quarter loss, hurt by lower volumes, unfavorable currency translation and Chapter 11 expenses.

For the quarter ended 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.

Net sales fell to $477.8 million from $497.1 million a year ago.

W.R. Grace said it recorded a pre-tax charge of $19.1 million in cost reduction and restructuring in the quarter.

The company, which has reduced its workforce and decreased its working capital by almost $90 million, said it was continuing its cost reduction activities and expected to record additional restructuring expenses in 2009.

W.R. Grace had filed for Chapter 11 bankruptcy in April 2001 to resolve asbestos personal injury and property damage claims against it and received approval from a U.S. bankruptcy court to solicit votes for its reorganization plan in March 2009.

The company recorded expenses related to its Chapter 11 proceedings, net of filing entity interest income, of $10.0 million in the first quarter.