27 October 2009 21:31 [Source: ICIS news]
HOUSTON (ICIS news)--Third-quarter net profit for Quaker Chemical rose 14% to $5.1m (€3.4m) from $4.4m behind cost-cutting actions and lower raw material costs, the US lubricant and metal-finishing-chemicals producer said on Tuesday.
Net sales were $118.9m, down 25% from $159.5m in the 2008 third quarter as volumes declined in all of the company’s regions and market segments, with the exception of modest growth in the Asia Pacific region, Quaker said.
However, third-quarter volumes were 18% higher than the second quarter.
“In the third quarter, we experienced a modest recovery in most end markets as our volumes improved from the second quarter,” chief executive Michael Barry said.
“Over the longer term, we expect our volumes to continue to increase, but it will take time to get back to historical levels as there is still a great deal of uncertainty in our end markets, especially over the next several quarters,” he added.
Barry said the company’s profitability was not currently at the level it needed to be at over the longer term.
Quaker’s selling, general and administrative (SG&A) expenses dropped $3.6m, or 9%, compared with the 2008 third quarter, behind restructuring programmes, lower commissions and lower travel and entertainment expenses, the company said.
After the earnings release, Quaker shares surged in after-hours electronic trading, moving up 80 cents from Tuesday's close, or 4.5%, to $18.41.
($1 = €0.67)
To discuss issues facing the chemical industry go to ICIS connect
For the latest chemical news, data and analysis that directly impacts your business sign up for a free trial to ICIS news - the breaking online news service for the global chemical industry.
Get the facts and analysis behind the headlines from our market leading weekly magazine: sign up to a free trial to ICIS Chemical Business.
|ICIS news FREE TRIAL|
|Get access to breaking chemical news as it happens.|
|ICIS Global Petrochemical Index (IPEX)|
|ICIS Global Petrochemical Index (IPEX). Download the free tabular data and a chart of the historical index|