Lubricant supplier Quaker Chemical posted substantial increases in net income for 2011s fourth quarter and the full year, compared to results in the year-earlier period and 2010.
Conshohocken, Pa.-based Quaker Chemical reported $9.8 million in net income for 2011s fourth quarter, up 42 percent from $6.9 million in the year-earlier period. For the full year 2011, the companys net income reached $43.6 million, up 36.7 percent from $31.9 million for 2010.
The companys net sales totaled $173.3 million in 2011s fourth quarter, up 22 percent from $142.1 million in the year-ago quarter. Full-year 2011 net sales reached $683.2 million, up 25.6 percent from $544.1 million in 2010.
We saw softer volumes due to seasonality and customer actions to decrease inventory levels in the supply chain, said Michael Barry, chairman, CEO and president of Quaker. On the positive side, he noted, the company is continuing to gain new business. In addition, we had a lower tax rate and we are pleased with the contributions from our recent acquisitions.
Quaker last October acquired G.W. Smith & Sons Inc., which manufactures and distributes die casting and other metalworking fluids. In December 2010, Quaker acquired specialty grease manufacturer Summit Lubricants.
The company believes a mix of factors that could impact its results in 2012. According to Barry, the negatives include a sluggish global economy, a lower rate of growth in China, escalating costs in emerging markets, and a stronger U.S. dollar. Offsetting these negatives are the continued recovery of manufacturing in North America, the full-year impact of acquisitions, as well as growth due to our investment in strategic initiatives, he said.