Press Releases
Quaker Chemical Announces First Quarter Results
CONSHOHOCKEN, Pa.,
Mr. Barry continued, "We remain focused on managing our costs and working capital. We generated significant cash flow during the quarter, with our net debt at 2005 levels. As I have mentioned previously, while 2009 will be a challenging year for Quaker and our customers, we remain confident that our business model, strong associate base, key growth initiatives and solid balance sheet will get us through this difficult period in a profitable manner and position us well for the future."
First Quarter 2009 Summary
Net sales for the first quarter were
Gross margins were down approximately
Selling, general and administrative expenses ("SG&A") decreased
As previously announced, the Company implemented an additional
restructuring program in the first quarter of 2009. The first quarter 2009
program included provisions for severance for 60 employees totaling
The increase in other income compared to the first quarter of 2008
reflects a
The decrease in equity income reflects declining steel demand caused by declines in the auto industry that impacted the Company's Japanese affiliate.
Balance Sheet and Cash Flow Items
The Company's net debt-to-total-capital ratio remained strong at 31% as of
The Company is closely monitoring the current circumstances surrounding
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. A major risk is that the
Company's demand is largely derived from the demand for its customers'
products, which subjects the Company to downturns in a customer's business and
unanticipated customer production shutdowns. Other major risks and
uncertainties include, but are not limited to, significant increases in raw
material costs, customer financial stability, worldwide economic and political
conditions, foreign currency fluctuations, and future terrorist attacks such
as those that occurred on
As previously announced,
Quaker Chemical Corporation
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Condensed Consolidated Statement of Income
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(Dollars in thousands, except per share data and share amounts)
---------------------------------------------------------------
(Unaudited)
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Three Months
Ended March 31,
-----------------
2009 2008
---- ----
Net sales $98,507 $147,718
Cost of goods sold 69,793 104,083
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Gross margin 28,714 43,635
% 29.1% 29.5%
Selling, general and administrative expenses 26,697 34,504
Restructuring and related charges 2,289 -
----- ---
Operating (loss) income (272) 9,131
% -0.3% 6.2%
Other income, net 1,454 161
Interest expense, net (1,089) (1,182)
------ ------
Income before taxes 93 8,110
Taxes on income (251) 2,765
---- -----
344 5,345
Equity in net (loss) income of associated companies (142) 112
---- ---
Net income 202 5,457
Less: Net Income attributable to noncontrolling
interest 200 364
--- ---
Net income attributable to Quaker Chemical Corporation $2 $5,093
== ======
% 0.0% 3.4%
Per share data:
---------------
Net income attributable to Quaker Chemical
Corporation - basic $0.00 $0.50
Net income attributable to Quaker Chemical
Corporation - diluted $0.00 $0.50
Quaker Chemical Corporation
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Condensed Consolidated Balance Sheet
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(Dollars in thousands, except par value and share amounts)
----------------------------------------------------------
(Unaudited)
-----------
March 31, December 31,
2009 2008
---- ----
ASSETS
Current assets
Cash and cash equivalents $17,977 $20,892
Construction fund (restricted cash) 7,455 8,281
Accounts receivable, net 89,575 98,702
Inventories, net 46,285 57,419
Prepaid expenses and other current assets 14,987 15,532
------ ------
Total current assets 176,279 200,826
Property, plant, and equipment, net 59,291 60,945
Goodwill 41,889 40,997
Other intangible assets, net 6,123 6,417
Investments in associated companies 7,404 7,987
Deferred income taxes 35,638 34,179
Other assets 40,451 34,088
------ ------
Total assets $367,075 $385,439
======== ========
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities
Short-term borrowings and current portion
of long-term debt $2,673 $4,631
Accounts and other payables 41,933 51,341
Accrued restructuring and related activities 1,804 2,198
Accrued compensation 6,652 7,741
Accrued pension and postretirement benefits 7,369 7,380
Other current liabilities 12,006 10,573
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Total current liabilities 72,437 83,864
Long-term debt 77,629 84,236
Deferred income taxes 7,638 7,156
Accrued pension and postretirement benefits 36,852 37,638
Other non-current liabilities 44,338 42,670
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Total liabilities 238,894 255,564
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Quaker shareholders' equity
Common stock, $1 par value; authorized
30,000,000 shares; issued 10,997,036 10,997 10,833
Capital in excess of par value 25,495 25,238
Retained earnings 117,091 117,089
Accumulated other comprehensive loss (29,490) (27,237)
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Total Quaker shareholders' equity 124,093 125,923
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Noncontrolling interest 4,088 3,952
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Total shareholders' equity 128,181 129,875
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Total liabilities and shareholders'
equity $367,075 $385,439
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Quaker Chemical Corporation
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Condensed Consolidated Statement of Cash Flows
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For the three months ended March 31,
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(Dollars in thousands)
----------------------
(Unaudited)
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2009 2008
---- ----
Cash flows from operating activities
Net income $202 $5,457
Adjustments to reconcile net income to net cash
provided by (used in) operating activities:
Depreciation 2,458 2,680
Amortization 257 300
Equity in net loss (income) of associated
companies, net of dividends 142 (112)
Deferred compensation and other, net (2,852) 1,268
Stock-based compensation 352 376
Restructuring and related charges 2,289 -
Gain on disposal of property, plant and equipment (1,193) (35)
Insurance settlement realized (144) (136)
Pension and other postretirement benefits (1,907) (2,458)
Increase (decrease) in cash from changes in current
assets and current liabilities, net of
acquisitions:
Accounts receivable 7,196 1,159
Inventories 10,060 (2,374)
Prepaid expenses and other current assets 34 (3,037)
Accounts payable and accrued liabilities (6,045) (9,280)
Change in restructuring liabilities (2,652) -
------ ---
Net cash provided by (used in) operating
activities 8,197 (6,192)
----- ------
Cash flows from investing activities
Capital expenditures (2,375) (1,949)
Payments related to acquisitions (1,000) (1,000)
Proceeds from disposition of assets 1,605 65
Insurance settlement received and interest earned 5,056 5,112
Change in restricted cash, net (4,086) (4,976)
------ ------
Net cash used in investing activities (800) (2,748)
---- ------
Cash flows from financing activities
Net decrease in short-term borrowings (1,619) (378)
Proceeds from long-term debt 1,584 9,844
Repayments of long-term debt (7,728) (251)
Dividends paid (2,492) (2,181)
Stock options exercised, other 69 1,486
Distributions to noncontrolling shareholders - -
--- ---
Net cash (used in) provided by financing
activities (10,186) 8,520
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Effect of exchange rate changes on cash (126) 752
Net (decrease) increase in cash and cash
equivalents (2,915) 332
Cash and cash equivalents at the beginning of the
period 20,892 20,195
------ ------
Cash and cash equivalents at the end of the period $17,977 $20,527
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SOURCEQuaker Chemical Corporation -0-04/28/2009 /CONTACT:Mark A. Featherstone , Vice President and Chief Financial Officer, +1-610-832-4160/ /Web Site: www.quakerchem.com / (KWR) CO:Quaker Chemical Corporation ST:Pennsylvania IN: CHM FIN SU: ERN CCA PR -- PH06940 -- 074004/28/2009 16:30 EDT http://www.prnewswire.com
