Quaker Chemical Earnings Up


Lubricant supplier Quaker Chemical reported strong results for the quarter ending Dec. 31, and for the year 2007.

Consoshocken, Pa.-based Quaker Chemical on Feb. 26 reported net income of $4.6 million for the fourth quarter, up 53.3 percent from $3 million in the year-earlier period. Fourth-quarter sales reached $142.4 million, up 23.2 percent from $115.5 million in 2006s fourth quarter.

For the full year, Quaker Chemical posted net income of $15.5 million, up 32.4 percent from $11.7 million in 2006. Sales in 2007 totaled $545.6 million, up 18.4 percent from $460.5 million in 2006.

The company attributed the increase in net sales partly to a combination of higher sales prices and volume growth. Volume growth in Asia/Pacific and Europe, higher CMS [chemical management services] revenues, and selling price increases realized across all regions and market segments were the primary reasons for the increase in net sales, according to Quaker.

Quaker Chairman and Chief Executive Officer Ronald Naples said that strong volume growth, continued work with its customers on the pricing front in the face of continued escalation in raw material costs, and improved selling, general and administrative expenses leverage were important parts of the companys profit growth in 2007. Beyond just the financials, we made considerable progress this year on a number of strategic initiatives, from customer penetration to new business development, Naples added.

He said the companys operating cash flow reached its highest level in more than 10 years, providing more resources for growth.

Selling, general and administrative expenses for the fourth quarter reached $35.5 million, up 9.8 percent from $32.3 million in the year-earlier period. For the full year, the same expenses reached $139.4 million, up 15.2 percent from $121 million in 2006. The company attributed most of the total years increase in such expenses to continued planned spending in higher growth areas, primarily China, higher incentive compensation as a result of higher earnings, higher commissions as a result of higher sales, higher level and environmental costs, and inflationary increases.

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