Q1 Earnings Roundup


Fuchs Petrolub, Ashlands Valvoline segment and BPs lubricants business each reported higher profits for the quarter ending March 31, while profits for SK Lubricants and Quaker Chemical, along with Chemturas petroleum additives net sales, were down for the quarter, compared to year-earlier numbers.


Fuchs Petrolub Group posted net income of 56.8 million (U.S. $63.3 million) for the first quarter, up 7.6 percent from 52.8 million in the year-earlier quarter.

The independent lubricant blenders sales revenue topped 492.6 million for the first quarter, up 7.8 percent from 456.8 million. The Mannheim, Germany-based companys revenue for the first quarter grew 22.7 percent to 146.5 million in Asia-Pacific and Africa, and 17.1 percent to 88.3 million in North and South America, compared to a 2.2 percent decline to 278.3 million Europe.

The [subsidiaries] in the Asia-Pacific, Africa and Central and Eastern Europe regions expanded

their business, Fuchs Chairman Stefan Fuchs said in his letter to shareholders. As anticipated, it was, however, not possible to repeat the high sales revenues recorded in the same quarter of the previous year in Germany. In the North and South America region, the weakening Brazilian economy was apparent. To support the growth initiative, we will continue our program of investments. These investments will focus primarily on Germany, the U.S. and Australia. Examples include construction of a new test bay building in Mannheim, a new grease plant in Chicago and a new facility in Newcastle.

SK Lubricants

SK Lubricants reported a first-quarter operating profit of 56.7 billion South Korean won (U.S. $52.4 million), down 14.5 percent from 66.3 billion won in 2014s first quarter.

Revenue for the period declined to 620.1 billion won, down 17 percent from 747.1 billion won in the year earlier period.

In its business analysis, the company noted the drop in global oil prices led to a weaker Group III base oil margin in the first quarter. SK anticipates that demand for Group III base oil will grow gradually as there is rising demand for environmentally-friendly and highly efficient products.

SK operates a 40,000 barrel per day API Group II/III base oil facility in Ulsan, South Korea (which includes a 26,000 b/d joint venture plant with JX Nippon Oil & Energy) and has joint venture plants in Indonesia and Spain.


Ashlands Valvoline segment reported operating income of $82 million for the quarter ending March 31, up slightly from $81 million in the year-earlier period, which the company attributed primarily to currency headwinds. Sales declined to $481 million, down 4.4 percent from $503 million.

Covington, Ky.-based parent company Ashland said lubricant sales volume reached 40.5 million gallons for the quarter, up 2.3 percent from 39.6 million gallons in the year-earlier quarter. The quarter ending March 31 is the second quarter of Ashlands fiscal year.

Same-store sales at company-owned Valvoline Instance Oil Change grew 7 percent compared to the year-earlier quarter. Across the broader VIOC network, the total number of oil changes rose 7 percent, with a 9 percent increase in premium oil changes. Globally, Valvolines premium-branded lubricant sales volume increased to a 40.7 percent share, up from 37.1 percent a year earlier.


BPs lubricants business reported an underlying replacement cost profit before interest and tax of $345 million in the first quarter, up 12.4 percent from $307 million in 2014s first quarter.

This performance reflects continued momentum in growth markets and improved efficiency resulting in lower costs, partially offset by adverse foreign exchange impacts, the company said in its stock exchange announcement that summarized first quarter results.


Philadelphia-headquartered Chemturas petroleum additives segment reported $159 million in net sales for the first quarter, down 5.8 percent from $171 million in the year earlier quarter.

The decline in net sales compared with the prior year first quarter is primarily the result of a change in our petroleum additives product mix and unfavorable foreign currency translation due to the strengthening of the U.S. dollar, which offset gains in price compared to the prior year, the company stated in its earnings release.

Quaker Chemical

Quaker Chemical, of Conshohocken, Pa., posted $10.6 million in net income for the first quarter, down 20.3 percent from $13.3 million in the year-earlier period.

Net sales for Quaker amounted to $181.3 million, down slightly from $181.7 million.

We are pleased with our results this quarter in spite of a difficult global market with significant foreign exchange headwinds, Quaker Chemical Chairman, CEO and President Michael Barry said in the companys earnings news release. Lower oil prices and a stronger U.S. dollar have changed the dynamics of our customers markets and have negatively impacted both our top and bottom lines. However, our continued market share gains and recent acquisitions have helped us achieve stable sales and earnings despite these extreme changes in our environment.

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