As expected, continued raw material cost escalation in the fourth quarter resulted in a lag effect on margins, causing our gross margins to be at their lowest level of the year, said Quaker Chemical CEO and President Michael Barry. In the first quarter of 2011, we have implemented significant price increases in order to restore our margins to more acceptable levels. Despite the negative impact on margins, our volumes remained strong and we were still able to achieve the fourth highest quarterly profit in the companys history.

For the full year 2010, net income reached $34.1 million, up more than 95 percent from $17.5 million for 2009. Net sales for 2010 amounted to $544.1 million, a 20.5 percent increase from $451.5 million during 2009.

Barry noted Quaker posted record earnings in 2010. We are now considerably more profitable than before the global economic crisis, he said. While our revenue has continued to recover, it is still down 6 percent from our high point in 2008. However, our earnings are at an all-time high and more than double from 2008.

While acknowledging current Middle East tensions put greater uncertainty on raw material pricing, Barry emphasized, our goal is to continue our profit growth and build upon the record profits we achieved in 2010. In addition, we expect to continue to make strategic acquisitions and are currently evaluating several opportunities.