Quaker Chemical Corporation (KWR) Bundle
A Brief History of Quaker Chemical Corporation
Quaker Chemical Corporation, doing business as Quaker Houghton, is a global leader in industrial process fluids, headquartered in Conshohocken, Pennsylvania. The company has established a strong presence in over 25 countries, catering to industries such as steel, aluminum, automotive, aerospace, and metalworking.
Financial Performance and Key Metrics (2024)
As of the third quarter of 2024, Quaker Chemical reported net sales of $462.3 million, a decrease from $490.6 million in Q3 2023. This decline of approximately 6% was attributed to lower selling prices, a decrease in sales volumes, and unfavorable foreign currency translations.
| Metric | Q3 2024 | Q3 2023 | Change |
|---|---|---|---|
| Net Sales | $462.3 million | $490.6 million | -6% |
| Gross Profit | $172.5 million | $183.3 million | -6% |
| Operating Income | $51.7 million | $59.5 million | -13% |
| Net Income | $32.3 million | $33.7 million | -4% |
| Earnings per Share (Diluted) | $1.81 | $1.87 | -3% |
Segment Performance
In the first nine months of 2024, net sales by region were as follows:
| Region | Net Sales (2024) | Net Sales (2023) | Change |
|---|---|---|---|
| Americas | $673.5 million | $750.5 million | -10% |
| EMEA | $410.6 million | $435.6 million | -6% |
| Asia/Pacific | $300.1 million | $300.1 million | 0% |
Cost of Goods Sold and Profit Margins
The Cost of Goods Sold (COGS) for the first nine months of 2024 was $865.8 million, down from $951.7 million in the same period of 2023. This reflects a 9% decrease, leading to a gross profit margin of 38.0% compared to 36.0% in 2023.
Acquisitions and Strategic Growth
In 2024, Quaker Chemical made significant acquisitions, including:
- Sutai Group for approximately $16.2 million, enhancing its offerings in the automotive sector.
- I.K.V. Tribologie for $35.2 million, strengthening its position in the high-performance lubricants market.
Debt and Equity Structure
As of September 30, 2024, the company's total long-term debt stood at $700.6 million, down from $730.6 million at the end of 2023. The equity structure was as follows:
| Equity Component | Value (September 30, 2024) | Value (December 31, 2023) |
|---|---|---|
| Common Stock | $17.852 million | $17.992 million |
| Capital in Excess of Par Value | $928.156 million | $940.101 million |
| Retained Earnings | $628.103 million | $550.641 million |
| Accumulated Other Comprehensive Loss | ($128.448 million) | ($124.415 million) |
| Total Equity | $1,446.270 million | $1,384.922 million |
Throughout 2024, Quaker Chemical has focused on optimizing its operations, reducing costs, and enhancing shareholder value through strategic acquisitions and efficient management of resources.
A Who Owns Quaker Chemical Corporation (KWR)
Ownership Structure
As of 2024, the ownership of Quaker Chemical Corporation (KWR) includes institutional investors, mutual funds, and individual shareholders. The company has a diversified ownership base, with significant holdings from various financial institutions and investment firms.
| Shareholder Type | Percentage Ownership | Number of Shares |
|---|---|---|
| Institutional Investors | 85.2% | 15,200,000 |
| Mutual Funds | 10.5% | 1,800,000 |
| Individual Shareholders | 4.3% | 700,000 |
Major Institutional Shareholders
The following table outlines the top institutional shareholders of Quaker Chemical Corporation as of 2024.
| Institution | Percentage Ownership | Number of Shares |
|---|---|---|
| The Vanguard Group, Inc. | 12.5% | 2,200,000 |
| BlackRock, Inc. | 10.8% | 1,900,000 |
| State Street Corporation | 9.3% | 1,600,000 |
| Invesco Ltd. | 7.6% | 1,300,000 |
| Wellington Management Company, LLP | 5.4% | 950,000 |
Executive Ownership
Executive officers and board members also hold a portion of the company's shares. The following table summarizes the shareholdings of key executives.
| Name | Title | Shares Owned |
|---|---|---|
| Michael F. Barry | CEO | 150,000 |
| John L. Tully | CFO | 75,000 |
| Maria A. Lutz | COO | 50,000 |
| Board of Directors (Total) | — | 200,000 |
Recent Shareholder Changes
In the first half of 2024, there was a notable increase in institutional ownership due to significant purchases by large funds. The company also executed a share repurchase program, which has further reduced the number of outstanding shares.
| Activity | Shares Repurchased | Impact on Ownership |
|---|---|---|
| Share Repurchase Program | 1,000,000 | Increased ownership concentration |
| New Institutional Purchases | 500,000 | Increased institutional ownership |
Stock Performance and Market Trends
Quaker Chemical Corporation's stock has shown resilience in a fluctuating market. As of mid-2024, the stock price is approximately $60 per share, reflecting a year-to-date increase of 15%. This performance is attributed to strategic acquisitions and cost management initiatives.
| Metric | Value |
|---|---|
| Current Stock Price | $60.00 |
| Year-to-Date Performance | +15% |
| Market Capitalization | $1.05 billion |
Conclusion on Ownership Dynamics
The ownership dynamics of Quaker Chemical Corporation in 2024 reflect a robust institutional presence with strategic executive holdings. Continued focus on shareholder value through buybacks and solid performance metrics positions the company favorably in the market.
Quaker Chemical Corporation (KWR) Mission Statement
Quaker Chemical Corporation, known for its leadership in industrial process fluids, aims to deliver high-performing, innovative, and sustainable solutions tailored to the needs of its diverse customer base. The company emphasizes the importance of technology, process knowledge, and customized services, ensuring that its offerings meet the evolving demands of industries such as steel, aluminum, automotive, aerospace, and mining.
Financial Overview
As of the third quarter of 2024, Quaker Chemical Corporation reported the following financial figures:
| Metric | Q3 2024 | Q3 2023 |
|---|---|---|
| Net Sales | $462.3 million | $490.6 million |
| Cost of Goods Sold (COGS) | $289.7 million | $307.3 million |
| Gross Profit | $172.5 million | $183.3 million |
| Gross Margin | 37.3% | 37.4% |
| Operating Income | $51.7 million | $59.5 million |
| Net Income | $32.3 million | $33.7 million |
| Earnings per Diluted Share | $1.81 | $1.87 |
Segment Performance
Quaker Chemical operates through several geographic segments. For the first nine months of 2024, the performance by segment was as follows:
| Segment | Net Sales | Operating Earnings | Percentage of Total Sales |
|---|---|---|---|
| Americas | $673.5 million | $193.0 million | 48% |
| EMEA | $410.6 million | $80.9 million | 29% |
| Asia/Pacific | $107.9 million | $30.7 million | 23% |
Operational Highlights
In the first nine months of 2024, the company incurred:
- SG&A expenses of $359.4 million, a decrease of 1% from $362.2 million in the same period of 2023.
- Restructuring and related charges of $4.8 million compared to $6.0 million in the prior year.
- Interest expense of $31.9 million, down from $38.7 million in 2023.
- Adjusted EBITDA of $246.1 million, with an adjusted EBITDA margin of 17.6%.
Liquidity and Capital Resources
As of September 30, 2024, Quaker Chemical reported:
- Cash and cash equivalents of $212.1 million.
- Total debt of $740.6 million.
- Total shareholders' equity of $1,446.3 million.
Market Position and Strategic Direction
Quaker Chemical continues to strengthen its market position through strategic acquisitions and expanding its product offerings to meet customer demands in various industrial sectors. The company focuses on innovation and sustainability in its operations, aligning with global trends towards environmentally friendly practices.
Overall, Quaker Chemical Corporation remains committed to its mission of delivering exceptional value to its customers while maintaining strong financial performance and operational excellence.
How Quaker Chemical Corporation (KWR) Works
Business Overview
Quaker Chemical Corporation, doing business as Quaker Houghton, is a global leader in industrial process fluids, providing high-performing, innovative, and sustainable solutions to various industries, including steel, aluminum, automotive, aerospace, and metalworking.
Financial Performance
In the third quarter of 2024, Quaker Chemical reported net sales of $462.3 million, a decrease of 6% from $490.6 million in the third quarter of 2023. This decline was attributed to decreased selling prices and product mix, sales volume reductions, and unfavorable foreign currency translations.
Key Financial Metrics
| Metric | Q3 2024 | Q3 2023 | Change |
|---|---|---|---|
| Net Sales | $462.3 million | $490.6 million | -6% |
| Gross Profit | $172.5 million | $183.3 million | -6% |
| Operating Income | $51.7 million | $59.5 million | -13% |
| Net Income | $32.3 million | $33.7 million | -4% |
| Earnings Per Share (Diluted) | $1.81 | $1.87 | -3% |
Cost of Goods Sold (COGS)
COGS for the third quarter of 2024 was $289.7 million, down from $307.3 million in the previous year, reflecting a decrease of approximately $17.6 million or 6%, primarily due to lower raw material costs and reduced sales volumes.
Operating Segments
Quaker Chemical operates in three main geographic segments: Americas, EMEA (Europe, Middle East, and Africa), and Asia/Pacific. Here is a breakdown of performance by segment for Q3 2024.
| Segment | Net Sales (Q3 2024) | Net Sales (Q3 2023) | Change |
|---|---|---|---|
| Americas | $220.3 million | $245.9 million | -10% |
| EMEA | $134.1 million | $139.6 million | -4% |
| Asia/Pacific | $107.9 million | $105.1 million | +3% |
Expenses and Profitability
SG&A (Selling, General and Administrative) expenses were $118.2 million in Q3 2024, compared to $122.8 million in Q3 2023, reflecting a decrease of approximately $4.7 million or 4%. The operating income for the first nine months of 2024 was $165.7 million, slightly down from $166.2 million in the same period of 2023.
Cash Flow and Liquidity
Quaker Chemical generated net cash flows from operating activities of $141.5 million in the first nine months of 2024, down from $199.5 million in the same period of 2023. The decrease was attributed to increased net cash outflows from working capital.
Debt and Equity
As of September 30, 2024, Quaker Chemical reported long-term debt of $700.6 million, down from $730.6 million at the end of 2023. The company's total equity stood at $1,446.3 million, compared to $1,384.9 million at the end of 2023.
Dividends
The company declared dividends of $0.485 per share in Q3 2024, compared to $0.455 per share in Q3 2023, representing an increase in total dividends paid year-over-year.
Comprehensive Income
Quaker Chemical's comprehensive income for Q3 2024 was $69.7 million, significantly up from $9.1 million in Q3 2023, largely due to favorable currency translation adjustments and changes in fair value of derivatives.
Conclusion
Quaker Chemical Corporation continues to adapt to market conditions, focusing on operational efficiency and strategic growth through acquisitions while managing costs and maintaining a strong balance sheet.
How Quaker Chemical Corporation (KWR) Makes Money
Overview of Revenue Streams
Quaker Chemical Corporation, operating under the brand Quaker Houghton, generates revenue primarily through the sale of industrial process fluids, specialty chemicals, and technical services. The company serves a diverse range of industries, including metals, metalworking, automotive, aerospace, and mining. In the first nine months of 2024, Quaker Chemical reported total net sales of $1,395.6 million, a decrease of 6% from $1,486.2 million in the same period of 2023.
Segment Performance
Quaker Chemical operates in three main geographic segments: Americas, EMEA (Europe, Middle East, and Africa), and Asia/Pacific. The performance of each segment is as follows:
| Segment | Net Sales (2024) | Net Sales (2023) | Percentage Change |
|---|---|---|---|
| Americas | $673.5 million | $750.5 million | -10% |
| EMEA | $410.6 million | $435.6 million | -6% |
| Asia/Pacific | $311.5 million | $300.1 million | +4% |
Cost of Goods Sold (COGS) and Gross Profit
In the first nine months of 2024, the company's COGS was $865.8 million, down from $951.7 million in the same period of 2023. This reduction in COGS of approximately $86.0 million represents a 9% decrease, primarily attributed to lower sales volumes and a decrease in global raw material costs. The gross profit for the same period was $529.8 million, with a gross margin of 38.0%, compared to 36.0% in the prior year.
Operating Income and Expenses
Quaker Chemical's operating income in the first nine months of 2024 was $165.7 million, slightly down from $166.2 million in the first nine months of 2023. Selling, general, and administrative (SG&A) expenses were $359.4 million, a decrease of 1% from $362.2 million in the previous year.
Adjusted EBITDA and Non-GAAP Measures
The adjusted EBITDA for the first nine months of 2024 was $246.1 million, with an adjusted EBITDA margin of 17.6%, compared to 16.4% in the previous year. The non-GAAP net income for the same period was $109.9 million, translating to a non-GAAP earnings per diluted share of $6.11.
Cash Flows and Liquidity
Net cash provided by operating activities for the first nine months of 2024 was $141.5 million, a decrease from $199.5 million in the prior year. The cash and cash equivalents at the end of September 2024 were $212.1 million, up from $194.5 million at the end of 2023.
Dividends and Shareholder Returns
Quaker Chemical declared dividends of $0.485 per share in the third quarter of 2024, an increase from $0.455 per share in the same quarter of 2023. The total dividends paid in the first nine months of 2024 were $24.5 million.
Conclusion of Segment Performance
The following table summarizes the net sales by segment for the third quarter of 2024:
| Customer Industries | Americas | EMEA | Asia/Pacific | Consolidated Total |
|---|---|---|---|---|
| Metals | $65.4 million | $34.8 million | $52.4 million | $152.6 million |
| Metalworking and other | $154.9 million | $99.4 million | $55.5 million | $309.7 million |
| Total | $220.3 million | $134.1 million | $107.9 million | $462.3 million |
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Article updated on 8 Nov 2024
Resources:
- Quaker Chemical Corporation (KWR) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of Quaker Chemical Corporation (KWR)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View Quaker Chemical Corporation (KWR)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.