Quaker Chemical Corporation Announces First Quarter Results

Apr 19, 2001, 01:00 ET from Quaker Chemical Corporation

    CONSHOHOCKEN, Pa., April 19 /PRNewswire/ -- Quaker Chemical Corporation
 (NYSE:   KWR) today announced its earnings for the first quarter ended March 31,
 2001 of $4.0 million or $0.45 per share.  The results for the quarter
 represent a decline in net income of 8% from the comparable period of the
 prior year which was primarily due to a weak U.S. economy as well as the
 negative impact of a stronger dollar against the euro and Brazilian real.
 Absent the negative foreign exchange fluctuations, net income would have been
 down only 1%.
     Net sales for the first quarter were $64.2 million, a 4% decline over the
 comparable period of the prior year. The first quarter sales comparison was
 negatively impacted by a decline in U.S. sales due to a softening U.S.
 economy, the sale of the U.S. pulp and paper business in May 2000, and the
 stronger dollar.  Excluding the impact of these last two factors, net sales
 would have increased 3%, with strong growth in all regions of the world except
 the U.S.
     Ronald J. Naples, Chairman and Chief Executive Officer stated, "Our
 experience in the first quarter was consistent with our expectations noted
 back in January as we exited last year.  We had exchange rates and falling
 U.S. production levels working against us.  But, in many ways, we are seeing
 the positive impact of our global organization and strategy that helped
 stabilize our earnings.  In the first quarter, strong growth in our non-U.S.
 sales, which now make up 60% of our overall revenue, helped offset the decline
 in our U.S. business.  While we expect continued weakness in the U.S., we
 continue to believe our full year earnings will at least meet last year's
 earnings of $1.93 per diluted share."
     Quaker Chemical Corporation, headquartered in Conshohocken, Pennsylvania,
 is a worldwide developer, producer, and marketer of custom-formulated chemical
 specialty products and a provider of chemical management services for
 manufacturers around the globe, primarily in the steel and automotive
 industries.
 
     This release contains forward-looking statements that are subject to
 certain risks and uncertainties that could cause actual results to differ
 materially from those projected in such statements. Such risks and
 uncertainties include, but are not limited to, unanticipated slowdowns in the
 Company's major markets, significant increases in raw material costs, and
 worldwide economic and political conditions and foreign currency fluctuations
 that may affect worldwide results of operations.
 
                          QUAKER CHEMICAL CORPORATION
 
                   Condensed Consolidated Statement of Income
                         For the period ended March 31,
 
                                                       Unaudited
                                                 Dollars in thousands
                                                 except per share data
 
                                                      First Quarter
                                                  2001             2000
 
     Net sales                                  $64,215          $66,994
 
       Cost of goods sold                        38,393           39,106
 
     Gross margin                                25,822           27,888
      %                                            40.2%           41.6%
 
       Selling, general and
        administrative expenses                  19,723           21,636
 
     Operating income                             6,099            6,252
       %                                            9.5%             9.3%
 
       Other income, net                            780              729
       Interest expense, net                       (221)            (290)
     Income before taxes                          6,658            6,691
 
       Taxes on income                            2,064            2,074
                                                  4,594            4,617
 
       Equity in net income of associated
        companies                                   280              267
       Minority interest in net income of
        subsidiaries                               (861)            (513)
 
     Net income                                  $4,013           $4,371
       %                                            6.2%             6.5%
 
     Per share data:
       Net income - basic                         $0.45            $0.49
       Net income - diluted                       $0.45            $0.49
 
     Shares Outstanding:
       Basic                                  8,901,667        8,862,735
       Diluted                                8,963,929        8,928,394
 
     Other Information:
       Depreciation and Amortization             $1,524           $1,580
 
     Note:  Certain reclasses have been made to prior year data to conform to
            current presentation.  Net sales have been restated to conform to
            new reporting requirements relating to shipping and handling.
 
 

SOURCE Quaker Chemical Corporation
    CONSHOHOCKEN, Pa., April 19 /PRNewswire/ -- Quaker Chemical Corporation
 (NYSE:   KWR) today announced its earnings for the first quarter ended March 31,
 2001 of $4.0 million or $0.45 per share.  The results for the quarter
 represent a decline in net income of 8% from the comparable period of the
 prior year which was primarily due to a weak U.S. economy as well as the
 negative impact of a stronger dollar against the euro and Brazilian real.
 Absent the negative foreign exchange fluctuations, net income would have been
 down only 1%.
     Net sales for the first quarter were $64.2 million, a 4% decline over the
 comparable period of the prior year. The first quarter sales comparison was
 negatively impacted by a decline in U.S. sales due to a softening U.S.
 economy, the sale of the U.S. pulp and paper business in May 2000, and the
 stronger dollar.  Excluding the impact of these last two factors, net sales
 would have increased 3%, with strong growth in all regions of the world except
 the U.S.
     Ronald J. Naples, Chairman and Chief Executive Officer stated, "Our
 experience in the first quarter was consistent with our expectations noted
 back in January as we exited last year.  We had exchange rates and falling
 U.S. production levels working against us.  But, in many ways, we are seeing
 the positive impact of our global organization and strategy that helped
 stabilize our earnings.  In the first quarter, strong growth in our non-U.S.
 sales, which now make up 60% of our overall revenue, helped offset the decline
 in our U.S. business.  While we expect continued weakness in the U.S., we
 continue to believe our full year earnings will at least meet last year's
 earnings of $1.93 per diluted share."
     Quaker Chemical Corporation, headquartered in Conshohocken, Pennsylvania,
 is a worldwide developer, producer, and marketer of custom-formulated chemical
 specialty products and a provider of chemical management services for
 manufacturers around the globe, primarily in the steel and automotive
 industries.
 
     This release contains forward-looking statements that are subject to
 certain risks and uncertainties that could cause actual results to differ
 materially from those projected in such statements. Such risks and
 uncertainties include, but are not limited to, unanticipated slowdowns in the
 Company's major markets, significant increases in raw material costs, and
 worldwide economic and political conditions and foreign currency fluctuations
 that may affect worldwide results of operations.
 
                          QUAKER CHEMICAL CORPORATION
 
                   Condensed Consolidated Statement of Income
                         For the period ended March 31,
 
                                                       Unaudited
                                                 Dollars in thousands
                                                 except per share data
 
                                                      First Quarter
                                                  2001             2000
 
     Net sales                                  $64,215          $66,994
 
       Cost of goods sold                        38,393           39,106
 
     Gross margin                                25,822           27,888
      %                                            40.2%           41.6%
 
       Selling, general and
        administrative expenses                  19,723           21,636
 
     Operating income                             6,099            6,252
       %                                            9.5%             9.3%
 
       Other income, net                            780              729
       Interest expense, net                       (221)            (290)
     Income before taxes                          6,658            6,691
 
       Taxes on income                            2,064            2,074
                                                  4,594            4,617
 
       Equity in net income of associated
        companies                                   280              267
       Minority interest in net income of
        subsidiaries                               (861)            (513)
 
     Net income                                  $4,013           $4,371
       %                                            6.2%             6.5%
 
     Per share data:
       Net income - basic                         $0.45            $0.49
       Net income - diluted                       $0.45            $0.49
 
     Shares Outstanding:
       Basic                                  8,901,667        8,862,735
       Diluted                                8,963,929        8,928,394
 
     Other Information:
       Depreciation and Amortization             $1,524           $1,580
 
     Note:  Certain reclasses have been made to prior year data to conform to
            current presentation.  Net sales have been restated to conform to
            new reporting requirements relating to shipping and handling.
 
 SOURCE  Quaker Chemical Corporation