CONSHOHOCKEN, Pa., April 1, 2025 /PRNewswire/ -- Quaker Houghton (the "Company") (NYSE: KWR), the global leader in industrial process fluids, announced today that it has completed its previously announced acquisition of Dipsol Chemicals Co., Ltd., ("Dipsol") a leading supplier of surface treatment and plating solutions and services primarily for the automotive and other industrial applications, for 23 billion JPY (~$153 million at current rates). Dipsol is headquartered in Japan and operates globally with r ...

Quaker Chemical Corporation (KWR) recently entered into a purchase agreement to acquire Dipsol Chemicals Co. Ltd. for JPY 23 billion (roughly $153 million). Dipsol is a leading supplier of surface treatment and plating solutions and services, mainly for automotive and other industrial applications. It is headquartered in Japan and had revenues of approximately $82 million over the 12-month period ending Dec. 31, 2024. This strategic investment aims to accelerate growth and create shareholder value by using ...

CONSHOHOCKEN, Pa., March 25, 2025 /PRNewswire/ -- Quaker Houghton (the "Company") (NYSE: KWR), the global leader in industrial process fluids, announced today that it has entered into a purchase agreement to acquire Dipsol Chemicals Co., Ltd., ("Dipsol") a leading supplier of surface treatment and plating solutions and services primarily for the automotive and other industrial applications, for  23 billion JPY (~$153 million at current rates), subject to post-closing adjustments.  Dipsol is headquartered in ...

Have you evaluated the performance of Quaker Chemical's (KWR) international operations during the quarter that concluded in December 2024? Considering the extensive worldwide presence of this specialty chemical company, analyzing the patterns in international revenues is crucial for understanding its financial resilience and potential for growth.The global economy today is deeply interlinked, making a company's engagement with international markets a critical factor in determining its financial success and ...

Quaker Chemical Corporation (KWR) recorded earnings of 81 cents per share in the fourth quarter of 2024, down from earnings of $1.12 per share in the year-ago quarter.Barring one-time items, earnings came in at $1.33 per share for the reported quarter, missing the Zacks Consensus Estimate of $1.62.Find the latest earnings estimates and surprises on Zacks Earnings Calendar.Net sales fell around 5% year over year to $444.1 million in the quarter. Sales, however, beat the Zacks Consensus Estimate of $441.7 mil ...

Financial Data and Key Metrics Changes - Fourth quarter net sales were $444 million, a 5% decline from the prior year or 3% lower on a constant currency basis [9][37] - Gross margins were 35.2% in the fourth quarter, impacted by manufacturing absorption, raw material cost increases, and customer production levels [11][40] - Adjusted EBITDA for the fourth quarter was $65 million, with a full year total of $311 million [12][43] - Operating cash flow for 2024 was $205 million, supporting capital allocation priorities [12][54] Business Line Data and Key Metrics Changes - Asia Pacific segment net sales increased approximately 5% year-over-year, driven by a 5% increase in sales volumes [44] - EMEA segment net sales decreased by 7% year-over-year, with a decline in sales volumes and service revenues [46] - Americas segment net sales declined 8% year-over-year, impacted by lower selling prices and volumes [49] Market Data and Key Metrics Changes - Market conditions were persistently soft throughout 2024, with a low to mid single-digit decline in aggregate end markets [9][39] - The company expects end markets to grow approximately 1% to 2% in 2025, primarily in the second half of the year [31][81] Company Strategy and Development Direction - The company aims to return to growth, reduce complexity, and enhance shareholder value through disciplined capital deployment [17][29] - Focus on globalizing operations and aligning resources with faster-growing regions, including India and Southeast Asia [20][21] - Emphasis on customer intimacy and operational efficiencies to drive organic growth [22][23] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the ability to deliver above-market performance despite challenging conditions [10][34] - Expectations for gross margins to be comparable to 2024 levels, with revenue and adjusted EBITDA growth anticipated in 2025 [34][81] - The long-term fundamentals of the industry are viewed positively, with a focus on managing controllable factors [35][58] Other Important Information - The company completed two acquisitions in 2024 and recently acquired Chemical Solutions & Innovations in South Africa [29][56] - A new $20 million cost action plan has been identified, expected to drive approximately $15 million in savings [27][58] Q&A Session Summary Question: Gross margin performance in Q4 - Management acknowledged a decline in gross margins due to various factors but indicated a return to historical levels is expected in 2025 [63][65] Question: Performance in Asia Pacific - Management highlighted strong new business wins in Asia Pacific and expressed optimism about transferring that success to other regions [69][71] Question: Expectations for raw materials in 2025 - Stability in raw materials is anticipated, with no significant volatility expected [90] Question: Volume trends in the Americas - Improvement in volumes is expected throughout 2025, with the first quarter likely being the lowest [92] Question: Impact of new capacity - New capacity is coming online in both Asia and the US, contributing to growth opportunities [95][96] Question: Cost savings initiatives - Cost savings are primarily targeting SG&A, with expectations for SG&A to be flat to modestly up in 2025 [106] Question: Capital allocation priorities - The focus remains on investing in the business through M&A and organic growth, with share repurchases considered opportunistically [112]

Quaker Chemical Corporation (NYSE:KWR) Q4 2024 Earnings Conference Call February 25, 2025 8:30 AM ET Company Participants Jeffrey Schnell - VP, IR Joe Berquist - President and CEO Tom Coler - EVP and CFO Robert Traub - General Counsel Conference Call Participants Mike Harrison - Seaport Research Partners David Begleiter - Deutsche Bank Laurence Alexander - Jefferies Jon Tanwanteng - CJS Securities Arun Viswanathan - RBC Capital Markets Operator Greetings, and welcome to Quaker Houghton Fourth Quarter and Fu ...

Core Insights - Quaker Chemical (KWR) reported a revenue of $444.09 million for the quarter ended December 2024, reflecting a year-over-year decline of 4.9% [1] - The earnings per share (EPS) for the quarter was $1.33, down from $1.78 in the same quarter last year, indicating a significant decrease [1] - The reported revenue exceeded the Zacks Consensus Estimate of $441.71 million by 0.54%, while the EPS fell short of the consensus estimate of $1.62 by 17.90% [1] Financial Performance Metrics - Quaker Chemical's stock has returned +2.4% over the past month, outperforming the Zacks S&P 500 composite, which saw a decline of -0.5% [3] - The company currently holds a Zacks Rank 5 (Strong Sell), suggesting potential underperformance relative to the broader market in the near term [3] Geographic Revenue Breakdown - Revenue from the Americas was reported at $208.59 million, surpassing the average estimate of $201.35 million, but showing a year-over-year decline of 7.9% [4] - Revenue from the Asia/Pacific region was $109.62 million, exceeding the average estimate of $106.70 million, with a year-over-year increase of 4.6% [4] - Revenue from the EMEA region was $125.88 million, below the estimated $130.05 million, reflecting a year-over-year decrease of 7.3% [4]

Core Viewpoint - Quaker Chemical reported quarterly earnings of $1.33 per share, missing the Zacks Consensus Estimate of $1.62 per share, and showing a decline from $1.78 per share a year ago, indicating a significant earnings surprise of -17.90% [1] Financial Performance - The company posted revenues of $444.09 million for the quarter ended December 2024, surpassing the Zacks Consensus Estimate by 0.54%, but down from $467.11 million year-over-year [2] - Over the last four quarters, Quaker Chemical has only surpassed consensus EPS estimates once [2] Stock Performance - Quaker Chemical shares have increased by approximately 0.7% since the beginning of the year, while the S&P 500 has gained 2.2% [3] - The stock is currently rated Zacks Rank 5 (Strong Sell), indicating expectations of underperformance in the near future [6] Earnings Outlook - The current consensus EPS estimate for the upcoming quarter is $1.82 on revenues of $456.95 million, and for the current fiscal year, it is $8.42 on revenues of $1.88 billion [7] - The trend for estimate revisions ahead of the earnings release has been unfavorable, which may impact future stock performance [6] Industry Context - The Chemical - Specialty industry, to which Quaker Chemical belongs, is currently ranked in the bottom 20% of over 250 Zacks industries, suggesting potential challenges for stock performance [8]

Financial Performance - Quaker Houghton reported net sales of $1,839.7 million in 2024, a decrease of 6% from $1,953.3 million in 2023, primarily due to a 4% decrease in selling price and product mix, a 2% decrease in sales volumes, and a 1% unfavorable impact from foreign currency translation[141]. - The company generated net income of $116.6 million or $6.51 per diluted share in 2024, compared to $112.7 million or $6.26 per diluted share in 2023, reflecting lower interest expenses and foreign exchange losses[142]. - Adjusted EBITDA for 2024 was $310.9 million, a decrease of 3% from $320.4 million in 2023, primarily due to lower net sales[142]. - Net cash flows from operating activities were $204.6 million in 2024, down from $279.0 million in 2023, driven by reduced cash inflow from working capital[144]. - The Americas segment accounted for approximately 48% of consolidated net sales in 2024, with net sales of $882.1 million, a decrease of $95.0 million or 10% compared to 2023[211]. Acquisitions and Strategic Initiatives - The Company acquired Chemical Solutions & Innovations (CSI) for approximately $3.9 million in February 2025, enhancing its position in South Africa[21]. - In July 2024, Quaker Houghton acquired the Sutai Group for approximately $16.2 million, strengthening its technology portfolio in the Asia/Pacific region[22]. - The acquisition of I.K.V. Tribologie IKVT for $35.2 million in February 2024 bolstered the Company's position in high-performance lubricants and greases[23]. - Strategic acquisitions are part of the company's business strategy, but successful integration and realization of synergies are critical to avoid adverse financial impacts[56]. Research and Development - Research and development expenses for 2024 were $57.3 million, an increase from $50.3 million in 2023 and $46.0 million in 2022[20]. - The company is committed to continuous product development to meet customer demands for higher performance, but faces risks if competitors introduce superior products[53]. Employee and Operational Insights - The Company had approximately 4,400 full-time employees globally as of December 31, 2024, with around 3,400 employed by non-U.S. subsidiaries[29]. - The company emphasizes the importance of safety culture, implementing ten "lifesaving" rules and several "Live Safe" initiatives to prevent serious injuries[40]. Financial Obligations and Liquidity - The Company had total net debt of $519.4 million as of December 31, 2024, consisting of total borrowings of $708.3 million less cash and cash equivalents of $188.9 million[162]. - The weighted average variable interest rate on outstanding borrowings was approximately 6.1% for the twelve months ended December 31, 2024, with an interest rate of approximately 5.2% on outstanding borrowings as of December 31, 2024[163]. - The Company believes its existing cash and anticipated cash flows will be sufficient to support its operating requirements and fund business objectives for at least the next twelve months[171]. Market and Economic Risks - The company faces significant risks from demand fluctuations in the steel, automotive, aerospace, and industrial equipment industries, which are cyclical[49]. - The company is exposed to economic uncertainties, including inflation, supply chain constraints, and potential downturns in customer industries[45]. - Rising interest rates could increase debt service obligations and negatively impact customer demand for the company's products[70]. - The company is subject to risks from currency fluctuations, particularly between the U.S. dollar and major currencies like the Euro and British pound, affecting profitability[73]. Environmental, Social, and Governance (ESG) Considerations - The company is subject to increasing scrutiny regarding its Environmental, Social, and Governance (ESG) practices, which may impose additional costs and risks[106]. - The company has adopted certain sustainability practices as highlighted in its annual Sustainability Report, which is available on its corporate website[107]. - The company may face reputational challenges if its ESG procedures do not meet stakeholder expectations, potentially harming its financial performance[108]. Legal and Regulatory Risks - The company may experience adverse effects from legislative and regulatory changes, tariffs, and geopolitical tensions, particularly related to Russia and Belarus[44]. - Compliance with complex global regulations is essential, as failure could result in increased costs and operational restrictions[83]. - Ongoing legal proceedings, including environmental matters, could adversely impact liquidity and reputation in the market[82]. Shareholder Returns - The company declared cash dividends totaling $1.88 per share, amounting to $33.6 million for the year ended December 31, 2024, compared to $1.78 per share or $32.0 million for 2023[132]. - The company has authorized a new share repurchase program of up to $150 million, effective immediately with no expiration date[64].