Press Releases
Quaker Chemical Announces Second Quarter Results
-$0.29 diluted EPS compared to breakeven first quarter 2009 - Debt levels reduced 20% fromDecember 2008 - Year-to-date operating cash flow triple 2008 level
CONSHOHOCKEN, Pa.,
Mr. Barry continued, "I am also very pleased with our strong cash
generation in the quarter as our net debt-to-capital ratio is at its lowest
level since the third quarter of 2003. With the high cash flow generation, we
have reduced our debt levels by 20% since the beginning of the year,
maintained our dividend, and continued to invest for the future -- an example
being our Middletown,
Second Quarter Summary
Net sales for the second quarter were
Gross margins were down approximately
Selling, general and administrative expenses ("SG&A") decreased
The Company expects to incur CEO transition costs of
Other income for the second quarter of 2008 includes a net arbitration
award of approximately
Year-to-Date Summary
Net sales for the first half of 2009 were
Gross margins were down approximately
SG&A decreased
Other income for the first half of 2009 includes a
Balance Sheet and Cash Flow Items
The Company's net debt-to-total-capital ratio was 23%, compared to 32% as
of
During the second quarter,
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
----------------------------
Condensed Consolidated Statement of Income
------------------------------------------
(Dollars in thousands, except per share data)
---------------------------------------------------------------
(Unaudited)
------------
Three Months Ended Six Months Ended
June 30, June 30,
-------------------- ----------------------
2009 2008 2009 2008
---- ---- ---- ----
Net sales $102,335 $158,188 $200,842 $305,906
Cost of goods sold 66,298 113,402 136,091 217,485
------ ------- ------- -------
Gross margin 36,037 44,786 64,751 88,421
% 35.2% 28.3% 32.2% 28.9%
Selling, general and
administrative
expenses 29,050 37,153 55,747 71,657
Restructuring and
related charges - - 2,289 -
CEO Transition Costs 1,193 1,880 1,193 1,880
----- ----- ----- -----
Operating income 5,794 5,753 5,522 14,884
% 5.7% 3.6% 2.7% 4.9%
Other income, net 356 1,687 1,810 1,848
Interest expense, net (1,318) (979) (2,407) (2,161)
------ ---- ------ ------
Income before taxes 4,832 6,461 4,925 14,571
Taxes on income 1,567 2,116 1,316 4,881
----- ----- ----- -----
3,265 4,345 3,609 9,690
Equity in net income
of associated companies 227 187 85 299
--- --- -- ---
Net income 3,492 4,532 3,694 9,989
Less: Net income
attributable to
noncontrolling interest 258 211 458 575
--- --- --- ---
Net income
attributable to
Quaker Chemical
Corporation $3,234 $4,321 $3,236 $9,414
====== ====== ====== ======
% 3.2% 2.7% 1.6% 3.1%
Per share data:
---------------
Net income
attributable to
Quaker Chemical
Corporation - basic $0.29 $0.42 $0.29 $0.91
Net income
attributable to
Quaker Chemical
Corporation -
diluted $0.29 $0.41 $0.29 $0.90
Quaker Chemical Corporation
----------------------------
Condensed Consolidated Balance Sheet
-------------------------------------
(Dollars in thousands, except par value and share amounts)
----------------------------------------------------------
(Unaudited)
-----------
June 30, December 31,
2009 2008
---- ----
ASSETS
Current assets
Cash and cash equivalents $24,605 $20,892
Construction fund (restricted
cash) 6,384 8,281
Accounts receivable, net 86,675 98,702
Inventories, net 43,405 57,419
Prepaid expenses and other
current assets 10,759 15,532
------ ------
Total current assets 171,828 200,826
Property, plant and equipment, net 61,463 60,945
Goodwill 44,610 40,997
Other intangible assets, net 6,027 6,417
Investments in associated
companies 7,904 7,987
Deferred income taxes 37,023 34,179
Other assets 38,735 34,088
------ ------
Total assets $367,590 $385,439
======== ========
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities
Short-term borrowings and
current portion of long-term
debt $2,692 $4,631
Accounts and other payables 43,755 51,341
Accrued restructuring and
related activities 590 2,198
Accrued compensation 7,325 7,741
Accrued pension and
postretirement benefits 4,919 7,380
Other current liabilities 13,826 10,573
------ ------
Total current liabilities 73,107 83,864
Long-term debt 68,699 84,236
Deferred income taxes 8,348 7,156
Accrued pension and postretirement
benefits 36,008 37,638
Other non-current liabilities 44,208 42,670
------ ------
Total liabilities 230,370 255,564
------- -------
Quaker shareholders' equity
Common stock, $1 par value;
authorized 30,000,000 shares;
issued 11,049,880 shares 11,050 10,833
Capital in excess of par value 26,210 25,238
Retained earnings 115,254 117,089
Accumulated other comprehensive
loss (19,987) (27,237)
------- -------
Total Quaker shareholders'
equity 132,527 125,923
------- -------
Noncontrolling interest 4,693 3,952
----- -----
Total shareholders' equity 137,220 129,875
------- -------
Total liabilities and
shareholders' equity $367,590 $385,439
======== ========
Quaker Chemical Corporation
----------------------------
Condensed Consolidated Statement of Cash Flows
-----------------------------------------------
For the six months ended June 30,
---------------------------------
(Dollars in thousands)
----------------------
(Unaudited)
-----------
2009 2008
---- ----
Cash flows from operating activities
Net income $3,694 $9,989
Adjustments to reconcile net income to net cash
provided by operating activities:
Depreciation 4,801 5,457
Amortization 522 606
Equity in net income of associated companies, net of
dividends (85) (299)
Deferred income tax -
Deferred compensation and other, net (1,521) 2,498
Stock-based compensation 927 1,762
Restructuring and related charges 2,289 -
Gain on disposal of property, plant and equipment (1,193) (76)
Insurance settlement realized (610) (685)
Pension and other postretirement benefits (3,799) (3,311)
Increase (decrease) in cash from changes in current
assets and current liabilities, net of acquisitions:
Accounts receivable 13,498 1,013
Inventories 15,022 (3,806)
Prepaid expenses and other current assets 3,481 (885)
Accounts payable and accrued liabilities (6,354) (4,146)
Change in restructuring liabilities (3,885) -
------ --
Net cash provided by operating activities 26,787 8,117
------ -----
Cash flows from investing activities
Capital expenditures (5,078) (7,038)
Payments related to acquisitions (1,000) (1,000)
Proceeds from disposition of assets 1,617 117
Insurance settlement received and interest earned 5,100 5,178
Change in restricted cash, net (2,593) (13,818)
------ -------
Net cash used in investing activities (1,954) (16,561)
------ -------
Cash flows from financing activities
Net decrease in short-term borrowings (1,716) (1,488)
Proceeds from long-term debt 1,584 10,000
Repayments of long-term debt (17,252) (2,120)
Dividends paid (5,022) (4,550)
Stock options exercised, other 262 7,628
Distributions to noncontrolling shareholders (90) -
--- --
Net cash (used in) provided by financing
activities (22,234) 9,470
------- -----
Effect of exchange rate changes on cash 1,114 949
Net increase in cash and cash equivalents 3,713 1,975
Cash and cash equivalents at the beginning of the
period 20,892 20,195
------ ------
Cash and cash equivalents at the end of the period $24,605 $22,170
======= =======
SOURCEQuaker Chemical Corporation -0-07/29/2009 /CONTACT:Mark A. Featherstone , Vice President and Chief Financial Officer ofQuaker Chemical Corporation , +1-610-832-4160/ /Web Site: www.quakerchem.com / (KWR) CO:Quaker Chemical Corporation ST:Pennsylvania IN: CHM MAC MNG SU: ERN CCA PR -- PH53784 -- 758407/29/2009 16:30 EDT http://www.prnewswire.com
