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Dec 31, 2021
Quaker Chemical Q4 2021 Earnings Report
Quaker Houghton's Q4 2021 results announced, showing increased net sales but decreased net income and adjusted EBITDA compared to the prior year.
Key Takeaways
Quaker Houghton reported a 16% increase in net sales to $447.0 million for Q4 2021, driven by price increases and acquisitions. However, net income decreased to $18.1 million, or $1.01 per diluted share, and adjusted EBITDA fell by 7% to $60.7 million due to rising raw material costs and supply chain pressures.
Net sales increased by 16% to $447.0 million due to price increases and acquisitions, offset by volume decline and unfavorable currency impact.
Net income decreased to $18.1 million, or $1.01 per diluted share, compared to $48.5 million, or $2.72 per diluted share in the prior year quarter.
Non-GAAP earnings per diluted share was $1.29 compared to $1.63 in the prior year fourth quarter.
Adjusted EBITDA decreased by 7% to $60.7 million due to higher costs and supply chain issues.
Revenue by Geographic Location
Forward Guidance
The Company expects raw material cost pressures and supply chain disruptions to persist throughout 2022. To mitigate the impact of these ongoing inflationary pressures, they are implementing further price actions and are actively managing their cost structure. They believe these actions will begin to drive a recovery in margins as they progress throughout the year.
Positive Outlook
- Implementing further price actions
- Actively managing cost structure
- Actions will drive recovery in margins
- Well positioned to continue to outpace market growth rates
- Delivering value-added solutions and services to customers
Challenges Ahead
- Raw material cost pressures to persist
- Supply chain disruptions to persist throughout 2022
- Economic environment is uncertain
- Automotive end markets are facing supply chain disruptions
Revenue & Expenses
Visualization of income flow from segment revenue to net income
Historical Earnings Impact
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Avg. Return Before/After Earnings
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