Quaker, Milacron Earnings Up


Lubricant supplier Quaker Chemical and Milacrons Industrial Fluids segment each saw increases in earnings and sales for the quarter ending June 30, compared to the year-earlier period.

Conshohocken, Pa.-based Quaker Chemical on Thursday said its net income reached $4.3 million for the second quarter, up 4 percent from the year-earlier period.

Quakers second-quarter sales reached $158.2 million, up 15 percent from $137.6 million in 2007s second quarter. The company attributed the increase to higher sales prices and foreign exchange rate translation. Volume growth in Asia Pacific and South America, along with higher revenue from chemical management services, was largely offset by volume declines in the companys other regions.

We had a fine second quarter in sales and profits, particularly in consideration of the much quickened escalation of raw material costs in the quarter, and the CEO transition cost charged, said Ronald Naples, Quaker chairman and chief executive officer. Our raw material expense in the quarter dramatically outstripped even the unprecedented levels of the last couple of years.

Quaker’s board of directors has selected Michael Barry, senior vice president and managing director – North America, to assume the CEO role in October, when Naples is scheduled to step down. Milacron said it is recognizing certain accelerated and other costs in accordance with Naples employment, transition and consulting agreement, which are expected to total $5.8 million over the 2008-2010 period. Of the $3.5 million in incremental costs estimated to be incurred in 2008, about $1.9 million was recognized in the second quarter as CEO transition costs.

Milacrons Industrial Fluids segment, which supplies metalworking and industrial fluids, on Thursday reported earnings of $4.6 million, up 30.4 percent from $3.2 million in the year-earlier period. Favorable currency translation effects helped offset declines in the North American market, the Cincinnati-based company said.

Second quarter sales reached $35 million, up 9.4 percent from $32 million in 2007s second quarter. According to Milacron, better pricing and cost-reduction initiatives combined to help offset material cost increases.

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