Q1 Earnings Roundup


First quarter profits were higher for Fuchs Petrolub SE, Quaker Chemical Corp. and Chemturas Industrial Performance Products segment, but lower at Afton Chemical, all compared to the same period of 2015.

Afton Chemical

Operating profit for Richmond, Virginia-based Afton Chemical was $100.4 million during the three months ended March 31, a reduction of 4.4 percent compared to $105 million for the first quarter in 2015.

Sales revenue for the petroleum additives segment also decreased in the first quarter. Afton, the petroleum additives segment of NewMarket Corp., posted $506.1 million in sales revenue, down 8.8 percent from $555 million during the same period in 2015.

These reductions were mainly due to changes in selling prices and lower shipments, substantially offset by lower raw material costs, NewMarket stated. Lubricant additive shipments dropped 3.4 percent, with declines in North America and Latin America partially offset by increases in Asia-Pacific and Europe.

NewMarket also reported overall net income of $62 million for the first quarter of the year, a 3 percent decrease compared to $64 million posted in the same period in 2015. Earnings per diluted share for 2016 was $5.22, compared to $5.14 per share in the year-before period.

Our operating profit margin for the rolling four quarters ended March 31, 2016 was 17.8 percent, which is consistent with our long-term expectations for the performance of the petroleum additives business, the company noted. We are also nearing the completion of phase one of our Singapore manufacturing facility. Phase two is expected to be completed in 2018, and will more than double our investment there.

Quaker Chemical

Quaker Chemical reported net income of $13 million for the first three months of 2016, compared to $10.4 million for the same period in 2015, a 25 percent increase. Net sales fell 2 percent, from $181.3 million to $178.1 million.

Sales for Quaker Chemical were down, as volume growth from existing operations and acquisitions were more than offset by negative impacts from currency exchange rates and declines in selling price, the Conshohoken, Pennsylvania, company said.

This performance was achieved despite foreign exchange rate headwinds, which negatively impacted our top and bottom line by 5 and 2 percent, respectively, and also, declines in global steel production of approximately 3.5 percent compared to the first quarter of 2015, said Michael Barry, president, chairman and CEO of Quaker Chemical. As our year progresses, we expect to see some decline in growth margin due to timing differences between raw material price changes and our current production adjustments.


Net sales for Chemturas petroleum additives business totaled $151 million for the first quarter of 2016, down 5 percent from $159 million year to year. Its Industrial Performance Products had net sales of $216 million, a 7 percent decrease compared to $232 million.

The Industrial Performance Products segment – which includes the petroleum additives business and urethanes – had operating income of $46 million, a 28 percent increase from $36 million. The reduction in sales revenue for IPP was the result of passing along savings in raw material costs that were driven by low oil prices, Philadelphia-headquartered Chemtura noted.

Our Industrial Performance Products segment bounced back from its weaker fourth quarter as customers picked up their order rates, said Craig Rogerson, Chemturas chairman, president and CEO.


Fuchs reported profit after tax of 59 million (U.S. $68 million), a 3.3 percent increase compared to 57 million for the first quarter in 2015.

The Mannheim, Germany-based independent lubricants blender reported that sales revenue rose 12 percent from 493 million to 550.2 million. Consolidation costs were 28.1 million, up from 20.5 million.

Geographically, the company grew fastest in Europe, where sales rose 26 percent from 278.3 million to 349.4 million. The company attributed the increase to its acquisition of German lubricants manufacturer Pentosin and Stockholm-based Statoil Fuel & Retail Lubricants.

Elsewhere the companys sales revenues fell – 1.4 percent in Asia-Pacific and Africa to 144.4 million, 4.3 percent in North and South America to 85 million.

Unfavorable currency translation canceled out organic growth in Asia-Pacific and Africa, said Fuchs, while weak demand in the oil, gas, mining and steel industries in North America and the economic situation in South America lead to existing operations in those regions to shrink.

Our focus is on organic growth and further strengthening of our market and competitive position worldwide, said Stefan Fuchs, chairman of the executive board at Fuchs. To this end, we want to invest 300 million in the expansion of existing facilities and the construction of new facilities until 2018.

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