CONSHOHOCKEN, PA — Quaker Houghton (NYSE: KWR) reported its financial results for the third quarter of 2024, showcasing a mixed performance amidst challenging market conditions. The company posted net sales of $462.3 million, reflecting a 6% decline from $490.6 million in the same period last year. This drop was primarily attributed to reduced selling prices and product mix changes, influenced by index-based contracts and softer end market conditions.
Net income for the quarter stood at $32.3 million, or $1.81 per diluted share, slightly down from $33.7 million, or $1.87 per diluted share, reported in Q3 2023. On a non-GAAP basis, net income was $34.0 million with earnings per diluted share at $1.89. Adjusted EBITDA reached $78.6 million, a 7% decrease from the previous year, driven by the lower net sales.
CEO Andy Tometich emphasized the company’s resilience despite the softer market conditions. “The third quarter once again highlighted the resilience of Quaker Houghton. While end market conditions softened compared to the second quarter of 2024, our volumes remained consistent, driven by new business wins across our portfolio,” said Tometich. He also noted that the company is maintaining a disciplined approach to costs and investments to balance short-term challenges with long-term goals.
Segment-wise, the Asia/Pacific region saw increased net sales due to volume growth and favorable currency impacts, although offset by lower prices. The Americas and EMEA segments experienced declines in sales volumes and price pressures, with the Americas also facing adverse currency translation effects.
Looking ahead, Tometich warned of ongoing market difficulties but expressed confidence in the company’s long-term strategy. “We anticipate the current difficult market conditions will likely persist through the end of the year. Our focus remains on executing on what we can control, driving efficiencies and productivity for our Company and our customers,” he added.
In terms of liquidity, the company generated $141.5 million in operating cash flow year-to-date, with a net leverage ratio of 1.6x. Share repurchases totaled approximately $14.6 million for the quarter.
Despite the challenges, Quaker Houghton remains optimistic about its ability to weather market difficulties and continue to deliver value and growth opportunities for shareholders.
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