Quaker Chemical rebounded with net profits for the full year and fourth quarter last year, after reporting net losses for 2022 and the fourth quarter of that year.
Also known as Quaker Houghton, Quaker Chemical reported net income of $20.2 million in the fourth quarter, improving from a $76 million net loss in the same period in 2022.
Fourth-quarter net sales decreased 4% to $467.1 million for the industrial process fluids company.
“The result was primarily due to a decrease in selling price and product mix of approximately 4% and a decrease in sales volume of approximately 1%, partially offset by a 1% favorable impact from foreign currency translation,” the company noted in its earnings release. “The decrease in selling price and product mix was primarily attributable to a continuation of softer market conditions that have persisted throughout the year, the direct and indirect impacts of the United Auto Workers strike and customer order patterns, partially offset by new business wins in all segments.”
Geographically, Quaker Chemical’s net sales in the fourth quarter increased by 7% to $226.6 million in the Americas, while remaining flat in Europe, Middle East and Africa at $135.7 million and at $104.8 million in Asia-Pacific.
For the full year, the Conshohocken, Pa.-based company’s net income reached $112.7 million, rebounding from a $15.9 million net loss. The company’s net sales increased 1% to $2 billion in 2023.
“We generated record net sales and earnings in 2023, reflecting the considerable improvement in the profitability of our business while managing through a challenging market environment,” CEO and President Andy Tometich said.
For the full year, net sales increased 3% in the Americas to $977.1 million and posted a 2% bump in the EMEA region to $571.3 million, while net sales in Asia-Pacific declined 7% to $404.9 million.