================================================================================
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT PURSUANT TO SECTION 13 OR 15(d) OF
THE SECURITIES EXCHANGE ACT OF 1934
July 23, 2004
Date of Report (Date of earliest event reported)
QUAKER CHEMICAL CORPORATION
(Exact name of Registrant as specified in its charter)
Commission File Number 0-7154
PENNSYLVANIA No. 23-0993790
(State or other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification No.)
One Quaker Park
901 Hector Street
Conshohocken, Pennsylvania 19428
(Address of principal executive offices)
(Zip Code)
(610) 832-4000
(Registrant's telephone number, including area code)
Not Applicable
(Former name or former address, if changed since last report)
================================================================================
INFORMATION TO BE INCLUDED IN THE REPORT
Item 7. Financial Statements, Pro Forma Financial Information and Exhibits.
The following exhibit is filed as part of this report:
Exhibit No.
-----------
99.1 Press Release of Quaker Chemical Corporation dated
July 23, 2004.
Item 12. Results of Operations and Financial Condition.
On July 23, 2004, Quaker Chemical Corporation announced guidance relating
to its results of operations for the quarter ended June 30, 2004 in a press
release, the text of which is included as Exhibit 99.1 hereto.
-2-
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the
Registrant has duly caused this report to be signed on its behalf by the
undersigned thereunto duly authorized.
QUAKER CHEMICAL CORPORATION
Registrant
Date: July 23, 2004 By: /s/ Michael F. Barry
---------------------------------
Michael F. Barry
Vice President and
Chief Financial Officer
-3-
Exhibit 99.1
[LOGO] Quaker
For Release: NEWS Contact:
Immediate Michael F. Barry
Vice President and
Chief Financial Officer
610/832-8500
- --------------------------------------------------------------------------------
Quaker Chemical Corporation Revises Second Quarter Expectations;
Sees Second Half Make-Up
CONSHOHOCKEN, Pa., July 23 /PRNewswire-FirstCall/ -- Quaker Chemical
Corporation (NYSE: KWR) today announced that it expects earnings per diluted
share for the second quarter ended June 30, 2004, to be around $0.29 per
diluted share. The Company's original earnings expectation for the second
quarter 2004 was for earnings to be similar to the second quarter 2003, as was
communicated in the Company's April 29, 2004, first quarter press release.
The second quarter 2003 earnings per diluted share were $0.36.
Despite record sales in the quarter, higher raw material prices and
slower-than-planned implementation of the Company's cost reduction and product
conversion programs in its new chemical management services (CMS) business
were largely responsible for the shortfall in earnings compared to
expectations.
In its first quarter press release, the Company indicated that it was
experiencing unexpectedly high raw material costs, particularly high crude oil
prices. The impact of higher raw material prices was exacerbated in the
second quarter. The Company has announced and implemented a number of price
increases and surcharges to help offset increases in raw material costs, and
the bulk of the positive impact from these actions will be realized in the
second half of 2004.
The profitability of the Company's new CMS business is dependent on the
Company's identification and implementation of cost reduction programs and
product conversions, as has been noted in the Company's past discussions of
CMS. During the second quarter of 2004, the Company made considerable
progress in both areas, the benefits of which are expected in the second half.
Further, additional product conversions and cost reduction programs are
anticipated for the second half.
Ronald J. Naples, Chairman and Chief Executive Officer, commented, "We're
really pleased with our revenue growth so far this year. Second quarter
profitability was a disappointment, but we're on top of the reasons for the
shortfall and have solid plans in place to get back on track. We are
optimistic that for 2004 we will still achieve earnings around our prior year
level, even though we don't anticipate raw material cost relief. Critical to
making this happen are continued economic recovery in our key markets, the
contribution of announced price increases that take effect in the second half,
and strong follow-through on our progress in product conversion and cost
reduction programs in our CMS business."
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. 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 September 11, 2001.
As previously announced, the Company expects to release its second quarter
earnings on July 29, 2004 (after market close) to be followed by an investor
conference call to discuss second quarter results on July 30, 2004 at
10:30 a.m. (ET). Access the conference by calling 877-269-7756 (toll-free) or
visit Quaker's Web site at http://www.quakerchem.com for a live webcast.
Quaker Chemical Corporation
One Quaker Park, 901 Hector Street, Conshohocken, PA 19428-0809 USA
www.quakerchem.com
T 610.832.4000 F 610.832.8682
SOURCE Quaker Chemical Corporation
-0- 07/23/2004
/CONTACT: Michael F. Barry, Vice President and Chief Financial Officer,
Quaker Chemical Corporation, +1-610-832-8500/
/Web site: http://www.quakerchem.com /
(KWR)
CO: Quaker Chemical Corporation
ST: Pennsylvania
IN: CHM
SU: ERP MAV CCA