Q3 2024 Quaker Chemical Corp Earnings Call Transcript
Key Points
- Quaker Houghton (KWR) delivered stable sales and consistent margins despite challenging market conditions.
- The company achieved a gross margin of 37.3%, in line with the prior year and quarter, demonstrating effective cost management.
- Quaker Houghton (KWR) generated $79 million in adjusted EBITDA and $1.89 in non-GAAP diluted earnings per share, highlighting business resilience.
- The Asia Pacific segment showed strong performance with a 9% increase in volumes year-to-date, driven by new business wins.
- The company has a strong financial position with over $200 million in cash and a net leverage ratio of 1.6 times trailing 12-month adjusted EBITDA.
- Net sales declined by approximately 6% year-over-year, impacted by lower selling prices and product mix.
- The Americas segment experienced a 10% decline in net sales due to lower industrial activity and customer downtimes.
- The EMEA segment faced challenges with a 4% decrease in net sales and higher manufacturing costs.
- The company anticipates continued soft market conditions in the fourth quarter, with potential impacts from seasonal patterns.
- Extended customer downtimes and reduced production rates, particularly in automotive and metals, negatively affected performance.
Greetings, and welcome to the Quaker Houghton third quarter 2024 earnings conference call. (Operator Instructions) As a reminder, this conference is being recorded. I would now like to turn the call over to Jeffrey Schnell, Vice President of Investor Relations. Mr. Schnell, you may begin.
Thank you. Good morning, and welcome to our third quarter 2024 earnings conference call. On the call today are Andy Tometich, our President and Chief Executive Officer; Tom Coler, our Executive Vice President and Chief Financial Officer; and Robert Traub, our General Counsel.
Our comments relate to the financial information released after the close of US markets yesterday, October 31, 2024. Our press release and accompanying slides can be found on our Investor Relations website. Both the prepared commentary and discussion during this call may contain forward-looking statements, reflecting the company's current view of future events and their potential effect on Quaker Houghton's operating and
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