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Quaker Chemical net income up 42%

01 Nov '06

3 min read

Quaker Chemical Corporation announced record third quarter sales of $116.4 million and a 42 percent net income improvement to $3.1 million, compared to third quarter 2005 sales of $105.8 million and net income of $2.2 million.

Diluted earnings per share increased to $0.32 for the third quarter of 2006 versus $0.23 in the third quarter of last year.

Third Quarter 2006 Summary
Net sales for the third quarter of 2006 were $116.4 million, up 10.1 percent from the third quarter of 2005 due to higher selling prices across all regions and volume growth in the U.S. and China.

Gross margin as a percentage of sales was 31.6 percent for the third quarter of 2006, as compared to 32.0 percent for the third quarter of 2005.

Higher selling prices and stronger performance from the Company's CMS channel helped restore margins to prior year third quarter levels despite continued significant escalations in raw material costs.

The third quarter 2006 gross margin percentage of 31.6 percent shows sequential improvement over the first two quarters of the year in which the Company reported gross margins of 29.6 percent and 30.4 percent, respectively.

Selling, general and administrative expenses for the quarter increased $1.5 million, but decreased as a percentage of sales to 27 percent from 28.3 percent in the prior year third quarter.

Planned new spending in higher growth areas was funded by savings from the Company's restructuring program in the fourth quarter of 2005.

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