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CONSHOHOCKEN, Pa., Jul 18, 2002 /PRNewswire-FirstCall via COMTEX/ -- Quaker Chemical Corporation (NYSE: KWR) today announced earnings for the three months ended June 30, 2002, of $3.2 million or $0.35 per diluted share. The results for the quarter represent a 35% improvement over the first quarter of 2002 earnings of $0.26 per diluted share. Earnings for the second quarter of 2001 were $4.1 million or $0.45 per diluted share. Net sales for the second quarter were $69.5 million versus $59.9 million for the first quarter of 2002 and $65.1 million for the second quarter of 2001. Excluding the revenue from the two acquisitions made in 2002, net sales for the second quarter would have been $64.2 million. Increased SG&A expenses in the quarter were primarily due to the recent acquisitions of United Lubricants and Epmar, which accounted for approximately one half of the quarterly increase, as well as higher pension, insurance, and other administrative costs. Foreign exchange fluctuations did not significantly impact the above comparisons with 2001.
Earnings for the first half of 2002 were $5.6 million or $0.60 per diluted share. During the first half of 2001, earnings were $8.1 million or $0.90 per diluted share. Net sales for the first half of 2002 were essentially flat with the first half of 2001 at $129 million. Excluding the revenue from the two acquisitions made in 2002, net sales for the first half would have been $123 million.
Ronald J. Naples, Chairman and Chief Executive Officer, stated, "So far, the year has progressed largely as expected, as we've managed significant sequential quarterly progress. We entered 2002 in a very tough industrial production environment throughout the globe. In March we began to see a pickup in our business activity, which has continued at improved levels in the second quarter. In addition, our two recent acquisitions are performing well and have contributed a bit to our bottom line, as well as, of course, to our top line. Looking ahead, based on our current expectations for industrial production levels and market share expansion, we believe we will be back on track in the third quarter showing favorable quarterly earnings growth versus the prior year. This takes us to the expectation of an up year in 2002 as we have previously noted."
Quaker Chemical Corporation, headquartered in Conshohocken, Pennsylvania, is a worldwide developer, producer, and marketer of custom-formulated chemical specialty products and a provider of chemical management services for manufacturers around the globe, primarily in the steel and automotive industries.
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. Such risks and uncertainties include, but are not limited to, further downturns in our customers' businesses, significant increases in raw material costs, worldwide economic and political conditions, foreign currency fluctuations, and future terrorist attacks such as those that occurred on September 11, 2001.
As previously announced, Quaker Chemical's investor conference to discuss second quarter earnings results is scheduled for Friday, July 19, 2002, at 2:30 p.m. (ET). Access the conference by calling 800-922-0755 or visit Quaker's Web site at http://www.quakerchem.com for a live webcast.
Quaker Chemical Corporation Condensed Consolidated Statement of Income For the period ended June 30, Unaudited Dollars in thousands except per share data Second Quarter Six Months 2002 2001 2002 2001 Net sales $69,457 $65,073 $129,384 $129,288 Cost of goods sold 40,495 37,988 76,065 76,381 Gross margin 28,962 27,085 53,319 52,907 % 41.7% 41.6% 41.2% 40.9% Selling, general and administrative expenses 23,279 20,126 43,303 39,849 Operating income 5,683 6,959 10,016 13,058 % 8.2% 10.7% 7.7% 10.1% Other (expense) income, net (28) 379 252 1,159 Interest expense, net (112) (293) (278) (514) Income before taxes 5,543 7,045 9,990 13,703 Taxes on income 1,774 2,184 3,197 4,248 3,769 4,861 6,793 9,455 Equity in net income of associated companies 201 216 184 496 Minority interest in net income of subsidiaries (734) (963) (1,383) (1,824) Net income $3,236 $4,114 $5,594 $8,127 % 4.7% 6.3% 4.3% 6.3% Per share data: Net income -- basic $0.35 $0.45 $0.61 $0.90 Net income -- diluted $0.35 $0.45 $0.60 $0.90 Shares Outstanding: Basic 9,249,925 9,064,679 9,202,378 8,983,623 Diluted 9,308,678 9,124,642 9,262,025 9,044,729 Other Information: Depreciation and Amortization $1,341 $1,582 A $2,652 $3,106 A A Upon adopting SFAS No. 142, "Goodwill and Other Intangible Assets," effective January 1, 2002, the Company no longer amortizes goodwill.The Company recorded goodwill amortization of $255 or $.02 per diluted share and $517 or $.04 per diluted share in the second quarter and six months ended June 30, 2001, respectively. MAKE YOUR OPINION COUNT - Click Here http://tbutton.prnewswire.com/prn/11690X57782243
SOURCE Quaker Chemical Corporation
CONTACT: Michael F. Barry, Vice President and Chief Financial Officer of Quaker Chemical Corporation, +1-610-832-8500
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