Press Releases
Quaker Chemical Announces Higher Third Quarter Earnings
- Diluted EPS of $0.45, up 55% compared to 2Q 09, and up 10% compared to 3Q 08
- Debt levels reduced 24% from December 2008
- $34.7 million year-to-date operating cash flow
Mr. Barry added, "The third quarter was also another strong quarter in 2009 for cash flow generation. Since the beginning of the year, we generated nearly
Third Quarter Summary
Net sales for the third quarter were
Gross margins were down approximately
Selling, general and administrative expenses ("SG&A") decreased
The Company incurred charges related to the former CEO's supplemental retirement plan of approximately
The increase in equity income is due to stronger financial performance from all the Company's associated companies.
Year-to-Date Summary
Net sales for the first nine months of 2009 were
Gross margins were down approximately
SG&A decreased
Other income for the first nine months of 2009 includes a
Balance Sheet and Cash Flow Items
The Company's net debt-to-total-capital ratio at
This release contains forward-looking statements that are subject to certain risks and uncertainties that could cause actual results to differ materially from those projected in such statements. A major risk is that the Company's demand is largely derived from the demand for its customers' products, which subjects the Company to downturns in a customer's business and unanticipated customer production shutdowns. Other major risks and uncertainties include, but are not limited to, significant increases in raw material costs, customer financial stability, worldwide economic and political conditions, foreign currency fluctuations, and future terrorist attacks such as those that occurred on
As previously announced,
Quaker Chemical Corporation
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Condensed Consolidated Statement of Income
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(Dollars in thousands, except per share data)
---------------------------------------------
(Unaudited)
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Three Months Nine Months
Ended Ended
September 30, September 30,
-------------- --------------
2009 2008 2009 2008
---- ---- ---- ----
Net sales $118,922 $159,506 $319,764 $465,412
Cost of goods sold 74,450 112,981 210,541 330,466
------ ------- ------- -------
Gross margin 44,472 46,525 109,223 134,946
% 37.4% 29.2% 34.2% 29.0%
Selling, general and
administrative expenses 34,646 38,278 90,393 109,935
Restructuring and related charges - - 2,289 -
CEO Transition Costs 1,250 1,625 2,443 3,505
----- ----- ----- -----
Operating income 8,576 6,622 14,098 21,506
% 7.2% 4.2% 4.4% 4.6%
Other income (expense), net 217 (96) 2,027 1,752
Interest expense, net (1,178) (1,044) (3,585) (3,205)
------ ------ ------ ------
Income before taxes and equity
in net income of associated
companies 7,615 5,482 12,540 20,053
Taxes on income 2,747 967 4,063 5,848
----- --- ----- -----
Income before equity in net
income of associated companies 4,868 4,515 8,477 14,205
Equity in net income of
associated companies 555 191 640 490
--- --- --- ---
Net income 5,423 4,706 9,117 14,695
Less: Net income attributable to
noncontrolling interest 371 266 829 841
--- --- --- ---
Net income attributable to
Quaker Chemical Corporation $5,052 $4,440 $8,288 $13,854
====== ====== ====== =======
% 4.2% 2.8% 2.6% 3.0%
Per share data:
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Net income attributable to
Quaker Chemical
Corporation , Common
Shareholders - basic $0.46 $0.41 $0.76 $1.33
Net income attributable to
Quaker Chemical
Corporation , Common
Shareholders - diluted $0.45 $0.41 $0.75 $1.31
Quaker Chemical Corporation
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Condensed Consolidated Balance Sheet
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(Dollars in thousands, except par value and share amounts)
----------------------------------------------------------
(Unaudited)
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September 30, December 31,
2009 2008
---- ----
ASSETS
Current assets
Cash and cash equivalents $25,369 $20,892
Construction fund (restricted cash) 3,805 8,281
Accounts receivable, net 100,926 98,702
Inventories, net 47,163 57,419
Prepaid expenses and other current assets 11,229 15,532
------ ------
Total current assets 188,492 200,826
Property, plant and equipment, net 66,504 60,945
Goodwill 46,362 40,997
Other intangible assets, net 5,852 6,417
Investments in associated companies 8,676 7,987
Deferred income taxes 36,456 34,179
Other assets 38,776 34,088
------ ------
Total assets $391,118 $385,439
======== ========
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities
Short-term borrowings and current
portion of long-term debt $2,835 $4,631
Accounts and other payables 55,495 51,341
Accrued restructuring and related activities 232 2,198
Accrued compensation 13,652 7,741
Accrued pension and postretirement benefits 1,869 7,380
Other current liabilities 16,114 10,573
------ ------
Total current liabilities 90,197 83,864
Long-term debt 64,875 84,236
Deferred income taxes 9,055 7,156
Accrued pension and postretirement benefits 35,946 37,638
Other non-current liabilities 44,746 42,670
------ ------
Total liabilities 244,819 255,564
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Quaker shareholders' equity
Common stock, $1 par value; authorized
30,000,000 shares; issued 11,072,352
shares 11,072 10,833
Capital in excess of par value 26,937 25,238
Retained earnings 117,757 117,089
Accumulated other comprehensive loss (14,515) (27,237)
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Total Quaker shareholders' equity 141,251 125,923
------- -------
Noncontrolling interest 5,048 3,952
----- -----
Total shareholders' equity 146,299 129,875
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Total liabilities and shareholders'
equity $391,118 $385,439
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Quaker Chemical Corporation
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Condensed Consolidated Statement of Cash Flows
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For the nine months ended September 30,
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(Dollars in thousands)
----------------------
(Unaudited)
-----------
2009 2008
---- ----
Cash flows from operating activities
Net income $9,117 $14,695
Adjustments to reconcile net income to net cash
provided by operating activities:
Depreciation 6,948 8,279
Amortization 797 906
Equity in net income of associated companies, net
of dividends (610) (490)
Deferred compensation and other, net (30) 840
Stock-based compensation 1,585 3,642
Restructuring and related charges 2,289 -
Gain on disposal of property, plant and equipment (1,194) (3)
Insurance settlement realized (1,104) (981)
Pension and other postretirement benefits (5,877) (3,541)
Increase (decrease) in cash from changes in current
assets and current liabilities, net of
acquisitions:
Accounts receivable 951 (3,723)
Inventories 12,547 (8,550)
Prepaid expenses and other current assets 3,283 (863)
Accounts payable and accrued liabilities 10,273 788
Change in restructuring liabilities (4,240) -
------ ---
Net cash provided by operating activities 34,735 10,999
------ ------
Cash flows from investing activities
Capital expenditures (9,811) (9,198)
Payments related to acquisitions (1,000) (1,000)
Proceeds from disposition of assets 1,640 139
Insurance settlement received and interest earned 5,164 5,234
Change in restricted cash, net 416 (13,578)
Net cash used in investing activities (3,591) (18,403)
------ -------
Cash flows from financing activities
Net decrease in short-term borrowings (1,796) (1,389)
Proceeds from long-term debt 3,500 10,000
Repayments of long-term debt (22,875) (3,165)
Dividends paid (7,565) (6,994)
Stock options exercised, other 353 13,974
Distributions to noncontrolling shareholders (274) (252)
---- ----
Net cash (used in) provided by financing
activities (28,657) 12,174
------- ------
Effect of exchange rate changes on cash 1,990 (899)
Net increase in cash and cash equivalents 4,477 3,871
Cash and cash equivalents at the beginning of the
period 20,892 20,195
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Cash and cash equivalents at the end of the period $25,369 $24,066
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SOURCE
Mark A. Featherstone Vice President and Chief Financial Officer, +1-610-832-4160
