Quaker Chemical attributed the increase in its net sales to a combination of volume growth and higher sales prices. Volume growth came from strong sales in Asia/Pacific, Europe and North America, as well as higher revenue related to the companys CMS channel. Selling price increases occurred across all regions and market segments in part as the result of an ongoing effort to offset higher raw material costs.

We had an outstanding quarter, said Ronald Naples, Quaker chairman and chief executive officer. As is apparent in our income statement, without the one-time environmental charge, we would have had very strong operating income growth.

The drop in operating income Naples alluded to concerned a $3.3 million environment settlement between AC Products Inc., a Quaker subsidiary, and Orange County Water District in California. In the third quarter, Quaker paid $2 million in litigation costs and $1.3 million for a soil and water remediation program, the company said.

We are certainly pleased with our business results and strong cash flow in the quarter which continues the progress we have seen so far this year, Naples said. We are encouraged by the volume growth and by real working capital improvements during the quarter. [And] we remain vigilant to the ongoing challenge of escalating raw material costs. With the settlement of the environmental litigation, we feel good about our long-term future and prospects of continued earnings improvement.

At Milacron, the Industrial Fluids segment – including water-based and oil-based coolants, lubricants and cleaners for metalcutting and metalforming operations – posted net income of $3.5 million for the third quarter, jumping 84 percent from $1.9 million during from the same period in 2006. The company attributed the rise mainly to better pricing and improved operating efficiency.

Quarterly sales for the Industrial Fluids segment totaled $31 million, up from $29 million in the third quarter of 2006. The company said that currency translation accounted for most of the increase.

Overall, Cincinnati-based Milacron reported a net loss of $4.5 million during the quarter, compared to a net loss of $7.2 million in the year-ago quarter. The company said that restructuring costs and other non-recurring costs totaled $1.7 million in the period.

Our efforts to expand our presence in faster-growing, emerging markets continue to pay dividends, said Ronald Brown, chairman, president and chief executive officer of Milacron. Our orders from these markets are up 20 percent year to date.