Quaker Chemical Corp. reported that its first quarter earnings dropped 40 percent, but said it sees signs of a turnaround in its business, providing fluids and related services primarily for the steel and automotive industries.
Quaker Chemicals first quarter earnings for the period ended March 31 were $2.4 million, or 26 cents per share, down from $4 million, or 45 cents per share, a year earlier. The decline was due mostly to a 6.7 percent drop in sales – to $59.9 million.
The Conshohocken, Pa., company noted that the results were in line with earlier projections. It also noted that the first quarter marked an improvement over the fourth quarter of 2001, when the company earned 20 cents per share.
Chairman and Chief Executive Officer Ronald J. Naples said business improved between January and March. He predicted that sequential quarterly earnings will grow for the rest of the year and that profits for 2002 will exceed 2001.
[W]e were seeing improvement in our businesses, with an increase in the level of activity in our steel and automotive markets in Europe and the U.S., Naples said.
In addition, two North American oil companies said their lubricant operations improved during the first quarter. Sunoco singled out base oil sales as one of its few bright spots for the reporting period. The Philadelphia-based oil company had an overall operating loss of $106 million but said that strong base oil margins helped offset weak performances of other products.
Outside base oil sales from its Tulsa, Okla., refinery averaged 14,300 barrels per day, up from 8,200 b/d during the first quarter of 2001.
Petro-Canada, like most other oil companies, reported a sharp drop in earnings, but it said that its lubricants business continues to improve. The company did not provide details of those operations, which are based at its Mississauga, Ontario, base oil refinery, but said industry margins remain strong and that its own sales of value-added products increased.