PENNSYLVANIA
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No.
23-0993790
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(State
or other jurisdiction of
incorporation
or organization)
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(I.R.S.
Employer
Identification
No.)
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One
Quaker Park
901
E. Hector Street
Conshohocken,
Pennsylvania 19428
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(Address
of principal executive offices)
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(Zip
Code)
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(610)
832-4000
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(Registrant’s
telephone number, including area code)
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(Former
name or former address, if changed since last
report)
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Exhibit No.
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99.1
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Press
Release of Quaker Chemical Corporation dated September 30,
2010.
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99.2 | Supplemental Information related to third quarter ended September 30, 2010. |
QUAKER
CHEMICAL CORPORATION
Registrant
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|||
Date: October
26, 2010
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By:
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/s/
Mark A. Featherstone
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|
Mark
A. Featherstone
Vice
President and
Chief
Financial
Officer
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NEWS
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||
For
Release:
Immediate
|
Contact:
Mark
A. Featherstone
Vice President
and
Chief
Financial Officer
610-832-4160
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·
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Q3
2010 EPS of $0.55, up 22% vs. $0.45 in Q3
2009
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·
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First
nine months 2010 EPS of $2.19, up 192% vs. $0.75 in
2009
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·
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Net
debt-to-total-capital ratio at 15%
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·
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$9.2
million of operating cash flow generated in Q3
2010
|
Quaker Chemical
Corporation
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Condensed Consolidated Statement of
Income
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(Dollars in thousands, except per share
data)
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(Unaudited)
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||||||||||||||||
Three
Months Ended September 30,
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Nine
Months Ended September 30,
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|||||||||||||||
2010
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2009
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2010
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2009
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|||||||||||||
Net
sales
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$ | 137,669 | $ | 118,922 | $ | 401,980 | $ | 319,764 | ||||||||
Cost
of goods sold
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88,641 | 74,450 | 257,081 | 210,541 | ||||||||||||
Gross
profit
|
49,028 | 44,472 | 144,899 | 109,223 | ||||||||||||
%
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35.6 | % | 37.4 | % | 36.0 | % | 34.2 | % | ||||||||
Selling,
general and administrative expenses
|
34,699 | 34,646 | 103,486 | 90,393 | ||||||||||||
Contingencies
charge
|
3,581 | - | 3,581 | - | ||||||||||||
CEO
transition costs
|
1,317 | 1,250 | 1,317 | 2,443 | ||||||||||||
Restructuring
and related charges
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- | - | - | 2,289 | ||||||||||||
Operating
income
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9,431 | 8,576 | 36,515 | 14,098 | ||||||||||||
%
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6.9 | % | 7.2 | % | 9.1 | % | 4.4 | % | ||||||||
Other
(expense) income, net
|
(320 | ) | 217 | 1,566 | 2,027 | |||||||||||
Interest
expense, net
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(1,032 | ) | (1,178 | ) | (3,202 | ) | (3,585 | ) | ||||||||
Income
before taxes and equity in net income of associated
companies
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8,079 | 7,615 | 34,879 | 12,540 | ||||||||||||
Taxes
on income before equity in net income of associated
companies
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1,661 | 2,747 | 8,985 | 4,063 | ||||||||||||
6,418 | 4,868 | 25,894 | 8,477 | |||||||||||||
Equity
in net income of associated companies
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439 | 555 | 734 | 640 | ||||||||||||
Net
income
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6,857 | 5,423 | 26,628 | 9,117 | ||||||||||||
Less:
Net income attributable to noncontrolling interest
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517 | 371 | 1,716 | 829 | ||||||||||||
Net
income attributable to Quaker Chemical Corporation
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$ | 6,340 | $ | 5,052 | $ | 24,912 | $ | 8,288 | ||||||||
%
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4.6 | % | 4.2 | % | 6.2 | % | 2.6 | % | ||||||||
Per share data:
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||||||||||||||||
Net
income attributable to Quaker Chemical Corporation Common Shareholders -
basic
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$ | 0.56 | $ | 0.46 | $ | 2.22 | $ | 0.76 | ||||||||
Net
income attributable to Quaker Chemical Corporation Common Shareholders -
diluted
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$ | 0.55 | $ | 0.45 | $ | 2.19 | $ | 0.75 |
Quaker Chemical
Corporation
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||||
Condensed Consolidated Balance
Sheet
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||||
(Dollars in thousands, except par value and share
amounts)
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(Unaudited)
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||||||||
September
30,
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December
31,
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|||||||
2010
|
2009
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|||||||
ASSETS
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||||||||
Current
assets
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||||||||
Cash
and cash equivalents
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$ | 27,149 | $ | 25,051 | ||||
Construction
fund (restricted cash)
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- | 2,358 | ||||||
Accounts
receivable, net
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117,238 | 108,793 | ||||||
Inventories,
net
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58,807 | 50,040 | ||||||
Prepaid
expenses and other current assets
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13,831 | 12,656 | ||||||
Total
current assets
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217,025 | 198,898 | ||||||
Property,
plant and equipment, net
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65,586 | 67,426 | ||||||
Goodwill
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49,493 | 46,515 | ||||||
Other
intangible assets, net
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7,175 | 5,579 | ||||||
Investments
in associated companies
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9,995 | 8,824 | ||||||
Deferred
income taxes
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31,953 | 31,692 | ||||||
Other
assets
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47,288 | 39,537 | ||||||
Total
assets
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$ | 428,515 | $ | 398,471 | ||||
LIABILITIES
AND EQUITY
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||||||||
Current
liabilities
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||||||||
Short-term
borrowings and current portion of long-term debt
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$ | 939 | $ | 2,431 | ||||
Accounts
and other payables
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59,854 | 60,939 | ||||||
Accrued
compensation
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16,939 | 16,656 | ||||||
Accrued
pension and postretirement benefits
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1,628 | 4,717 | ||||||
Other
current liabilities
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19,865 | 15,224 | ||||||
Total
current liabilities
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99,225 | 99,967 | ||||||
Long-term
debt
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58,445 | 63,685 | ||||||
Deferred
income taxes
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9,268 | 8,605 | ||||||
Accrued
pension and postretirement benefits
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26,678 | 27,602 | ||||||
Other
non-current liabilities
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48,477 | 42,317 | ||||||
Total
liabilities
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242,093 | 242,176 | ||||||
Equity
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||||||||
Common
stock, $1 par value; authorized 30,000,000 shares; issued 11,376,232
shares
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11,376 | 11,086 | ||||||
Capital
in excess of par value
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35,731 | 27,527 | ||||||
Retained
earnings
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140,161 | 123,140 | ||||||
Accumulated
other comprehensive loss
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(7,919 | ) | (10,439 | ) | ||||
Total
Quaker shareholders' equity
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179,349 | 151,314 | ||||||
Noncontrolling
interest
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7,073 | 4,981 | ||||||
Total
shareholders' equity
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186,422 | 156,295 | ||||||
Total
liabilities and equity
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$ | 428,515 | $ | 398,471 |
Quaker Chemical
Corporation
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Condensed Consolidated Statement of Cash
Flows
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For the nine months ended September
30,
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(Dollars in
thousands)
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(Unaudited)
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||||||||
2010
|
2009
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|||||||
Cash
flows from operating activities
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||||||||
Net
income
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$ | 26,628 | $ | 9,117 | ||||
Adjustments
to reconcile net income to net cash provided by operating
activities:
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||||||||
Depreciation
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7,448 | 6,948 | ||||||
Amortization
|
736 | 797 | ||||||
Equity
in net income of associated companies, net of dividends
|
(523 | ) | (610 | ) | ||||
Deferred
compensation and other, net
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1,559 | (30 | ) | |||||
Stock-based
compensation
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2,371 | 1,585 | ||||||
Restructuring
and related charges
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- | 2,289 | ||||||
Gain
on disposal of property, plant and equipment
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(24 | ) | (1,194 | ) | ||||
Insurance
settlement realized
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(1,225 | ) | (1,104 | ) | ||||
Pension
and other postretirement benefits
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(3,184 | ) | (5,877 | ) | ||||
Increase
(decrease) in cash from changes in current assets and current liabilities,
net of acquisitions:
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||||||||
Accounts
receivable
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(7,982 | ) | 951 | |||||
Inventories
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(8,645 | ) | 12,547 | |||||
Prepaid
expenses and other current assets
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(2,656 | ) | 3,283 | |||||
Accounts
payable and accrued liabilities
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5,007 | 10,273 | ||||||
Change
in restructuring liabilities
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- | (4,240 | ) | |||||
Net
cash provided by operating activities
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19,510 | 34,735 | ||||||
Cash
flows from investing activities
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||||||||
Capital
expenditures
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(6,259 | ) | (9,811 | ) | ||||
Payments
related to acquisitions
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(6,862 | ) | (1,000 | ) | ||||
Proceeds
from disposition of assets
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147 | 1,640 | ||||||
Insurance
settlement received and interest earned
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5,099 | 5,164 | ||||||
Change
in restricted cash, net
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(1,516 | ) | 416 | |||||
Net
cash used in investing activities
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(9,391 | ) | (3,591 | ) | ||||
Cash
flows from financing activities
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||||||||
Net
decrease in short-term borrowings
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(1,394 | ) | (1,796 | ) | ||||
Proceeds
from long-term debt
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29 | 3,500 | ||||||
Repayments
of long-term debt
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(5,367 | ) | (22,875 | ) | ||||
Dividends
paid
|
(7,768 | ) | (7,565 | ) | ||||
Stock
options exercised, other
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3,829 | 353 | ||||||
Excess
tax benefit related to stock option exercises
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2,294 | - | ||||||
Distributions
to noncontrolling shareholders
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- | (274 | ) | |||||
Net
cash used in financing activities
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(8,377 | ) | (28,657 | ) | ||||
Effect
of exchange rate changes on cash
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356 | 1,990 | ||||||
Net
increase in cash and cash equivalents
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2,098 | 4,477 | ||||||
Cash
and cash equivalents at the beginning of the period
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25,051 | 20,892 | ||||||
Cash
and cash equivalents at the end of the period
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$ | 27,149 | $ | 25,369 |