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Sep 30, 2022
Quaker Chemical Q3 2022 Earnings Report
Quaker Houghton's net sales increased due to price and product mix, but volumes were impacted by softer market conditions.
Key Takeaways
Quaker Houghton reported a net sales increase of 10% in Q3 2022, driven by pricing actions and acquisitions, despite volume declines due to softer market conditions, particularly in Europe and Asia/Pacific. The company's net income was $25.9 million, or $1.44 per diluted share, while non-GAAP earnings per diluted share were $1.74. Adjusted EBITDA increased by 6% to $70.3 million.
Net sales increased by 10% to $492.2 million, driven by a 25% increase in selling price and product mix.
Net income was $25.9 million, or $1.44 per diluted share, compared to $31.1 million, or $1.73 per diluted share in the prior year quarter.
Non-GAAP earnings per diluted share were $1.74, compared to $1.63 in the prior year quarter.
Adjusted EBITDA increased by 6% to $70.3 million.
Forward Guidance
Company expects the current uneven demand environment and seasonal demand trends to weigh on end markets in the fourth quarter of 2022 and expects to deliver sequential margin expansion.
Positive Outlook
- Expect to deliver sequential margin expansion in the fourth quarter of 2022
- Continue to work to return to pre-pandemic margin levels
- Focused on improving profitability through additional pricing and cost controls
- Simplifying operating model to align with the macroeconomic environment
- Continuing to prioritize new business wins
Challenges Ahead
- Expect the current uneven demand environment to weigh on our end markets in the fourth quarter
- Expect seasonal demand trends to weigh on our end markets in the fourth quarter
- Volumes were impacted by a softer end market environment, primarily in Europe and China
Historical Earnings Impact
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Avg. Return Before/After Earnings
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