Q3: Calumet, Cosan, Valvoline, Quaker, Milacron


Calumet Specialty Products Partners, Cosan‘s Moove lubricants segment and Quaker Chemical each reported net losses, while Milacron‘s Fluid Technologies segment posted a loss in operating earnings for the third quarter. Valvoline‘s operating income from its three segments increased year-over-year for the quarter ending Sept. 30.


Get alerts when new Sustainability Blog articles are available.


Calumet reported a net loss of $4.6 million for the company’s third quarter ended Sept. 30, compared to a $16.5 million net loss in the same period last year.

The Indianapolis-based company posted slightly decreased sales of $929.6 million for the quarter, down almost 3 percent from $953.5 million in the year-earlier period.

Third-quarter specialty products sales volumes reached 24,291 barrels per day, down from 25,708 b/d the year prior. Lubricating oils accounted for 11,937 b/d, a slight increase from 11,716 a year ago. Packaged and synthetic specialty products – including production at the company’s Royal Purple, Bel-Ray, Calumet Packaging and Missouri facilities – fell to 1,384 b/d, down from 2,052 b/d. Wax sales increased, from 1,106 b/d in 2018 to 1,440 b/d, and solvents decreased from 7,728 b/d to 7,493 b/d.


Moove – Cosan’s lubricants production and distribution arm – posted a net loss of 9.6 million Brazilian reals (U.S. $2.3 million net loss), down from a net income of 18.3 million Brazilian reals in the same period last year.

However, the Sao Paulo, Brazil-based company reported net revenue of 1.1 billion Brazilian reals in the third quarter, an almost 9 percent increase.

Moove’s combined lubricant and base oil sales totaled over 95,000 metric tons, up 15 percent from the year-earlier period, when sales volume reached just under 83,000 metric tons. The company said in its earnings release that sales were bolstered by the maturation of international operations.

Cosan, a producer of sugar and ethanol products since 1936, expanded through acquisitions, becoming a distributor of fuels and lubricants beginning in 2008.


Valvoline Inc.’s three operating segments – Core North America, quick lubes and international – totaled $115 million in combined operating income for the quarter ending Sept. 30, up almost 10 percent from the year-earlier period. The quarter ending Sept. 30 is the fourth quarter of Valvoline’s fiscal year.

For the company’s full fiscal year, combined operating income tallied at $415 million, up 1.5 percent from $409 million.

The Lexington, Kentucky-based company’s three segments combined for $629 million in sales, an almost 6 percent increase from $594 million in the same period of 2018. The Core North America segment accounted for the largest portion of those sales in the fourth quarter with $259 million, or 41.1 percent of total sales, followed by quick lubes with $222 million (35.2 percent) and international with $148 million (23.5 percent).

For of the company’s full fiscal year, sales totaled $2.4 billion, a slight increase from $2.3 billion for the previous fiscal year. Core North America accounted for $994 million, or 41.5 percent, of those sales, quick lubes accounted for $822 million, or 34.4 percent, and international totaled $574 million, or 24 percent.

The Core North America segment sold 23.9 million gallons of lubricants in the quarter, down 4 percent from 24.9 million. The company attributed the decline to reductions in branded volume in its retail channel.

Quick-lube lubricants sales volume totaled 7.4 million gallons, a 12 percent increase. Valvoline noted the addition of 33 net new stores during the quarter.

International lubricants sales volumes reached 15.1 million gallons for the quarter, unchanged from a year earlier.

Core North America sold 92.1 million gallons of lubricants for the full fiscal year, down from 98.8 million gallons in 2018, quick lubes solid 28.1 million gallons, up from 24.4 million gallons, and international sold 58.2 million gallons, slightly down from 58.7 million gallons.

“We are pleased with the strong results in the fourth quarter, which exceeded our expectations,” commented Valvoline CEO Sam Mitchell in the company’s earnings release. “We expect to make significant progress in 2020 to accelerate our growth in quick lubes, maintain core North America and develop international.”

Quaker Chemical

Quaker Chemical reported a net loss of $13.1 million for the third quarter, down from net income of $19.7 million in the year-earlier period.

Net sales for the Conshohocken, Pennsylvania-based lubricant supplier reached $325.1 million, a 46 percent increase compared to last year.

The company completed a merger with Houghton International on Aug. 1, forming the new Quaker Houghton. In its earnings release, Quaker Chemical said it acquired all of the issued and outstanding shares of Houghton from Gulf Houghton Lubricants, Ltd. The final purchase consisted of approximately $170.8 million in cash; the issuance of approximately 4.3 million shares of common stock of Quaker Chemical with par value of $1.00, comprising 24.5 percent of the common stock of Quaker at closing; and Quaker’s refinancing of approximately $660 million of Houghton’s net indebtedness at closing, not including cash proceeds from the divestiture.

The third quarter results include a variety of one-time and non-recurring costs, many of them associated with the merger, and without which the company would have made a profit.

The company also provided unaudited, pro forma financial information in its release, based on financial results of Quaker and the prior two months results of Houghton. On a pro forma basis, the combined company posted a net loss of $20 million for the third quarter, or Quakers reported $13.1 million loss plus an additional $7 million loss by Houghton. Pro forma net sales reached $386 million.


Cincinnati-based Milacron’s Fluid Technologies segment reported operating earnings of $5.9 million in the third quarter, down just over 3 percent from $6.1 million in the same period of 2018.

Sales for the segment – which supplies metalworking and industrial fluids – dropped 8 percent to $29.9 million in the third quarter, down from $32.6 million.

“We continue to face, and our results this quarter were impacted by, industry-wide headwinds, the effect of the global slowdown and the ongoing effects of the trade tension between the United States and China,” the company stated in its earnings release.

Milacron entered into an agreement under which Hillenbrand, Inc. will acquire the company in a cash and stock transaction. The acquisition is expected to close by the end of 2019.