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Jun 30, 2022
Quaker Chemical Q2 2022 Earnings Report
Quaker Houghton achieved record net sales driven by strong price realization, but earnings declined due to inflationary pressures, COVID-19 disruptions, and geopolitical issues.
Key Takeaways
Quaker Houghton reported record net sales of $492.4 million for Q2 2022, a 13% increase compared to the prior year. However, net income decreased to $14.3 million, or $0.80 per diluted share, compared to $33.6 million, or $1.88 per diluted share in the prior year, primarily due to lower gross margins attributable to significant increases in raw material and other costs.
Net sales reached a record $492.4 million, up 13% year-over-year.
Net income decreased to $14.3 million, or $0.80 per diluted share.
Non-GAAP earnings per diluted share was $1.32 compared to $1.82 in the prior year quarter.
Adjusted EBITDA declined to $58.5 million compared to $70.1 million in the prior year quarter.
Forward Guidance
The company expects to deliver sequential gross margin expansion and earnings growth in the second half of 2022.
Positive Outlook
- Focus on executing on items within their control.
- Actively working with customers to get needed pricing.
- Offsetting the persistent inflationary pressures on margins.
- Remaining vigilant on costs.
- Delivering sequential gross margin expansion and earnings growth in the second half of 2022.
Challenges Ahead
- Significant uncertainty caused by several macroeconomic factors.
- Ongoing inflationary pressures.
- COVID-19 disruptions in China.
- Unfavorable foreign currency translation.
- Geopolitical issues and other disruptions that impacted customers and end markets.
Historical Earnings Impact
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Avg. Return Before/After Earnings
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