Quaker Chemical Corporation, operating as Quaker Houghton, reported its financial results for the third quarter and the nine months ended September 30, 2024. The company experienced a decline in net sales, with Q3 2024 net sales at $462.3 million, down 6% from $490.6 million in Q3 2023. For the nine months, net sales totaled $1.396 billion, a decrease of 6% from $1.486 billion in the same period last year. The decline in sales was attributed to a 4% decrease in selling prices and product mix, a 1% decrease in sales volumes, and a 1% unfavorable impact from foreign currency translation.
Gross profit for Q3 2024 was $172.5 million, also down 6% from $183.3 million in Q3 2023. The gross margin remained relatively stable at 37.3%, compared to 37.4% in the prior year. Operating income for Q3 2024 decreased to $51.7 million from $59.5 million in Q3 2023. However, net income for Q3 2024 was $32.4 million, slightly down from $33.7 million in Q3 2023, with diluted earnings per share at $1.81 compared to $1.87 in the previous year.
For the nine-month period, net income increased to $102.5 million from $92.6 million in the same period of 2023, with diluted earnings per share rising to $5.70 from $5.14. The company reported a gross profit of $529.8 million for the nine months, down from $534.5 million in 2023, but the gross margin improved to 38.0% from 36.0%.
Quaker Houghton made strategic acquisitions, including the Sutai Group for approximately $16.2 million in July 2024 and I.K.V. Tribologie IKVT for $35.2 million in February 2024. These acquisitions are expected to enhance the company's product offerings in industrial process fluids. The company also initiated a restructuring program in 2022, resulting in a headcount reduction of approximately 175 positions globally, with completion expected by the end of Q1 2025.
Cash and cash equivalents increased to $212.1 million as of September 30, 2024, up from $194.5 million at the end of 2023. The company reported total assets of $2.736 billion and total liabilities of $1.289 billion as of the same date. The effective tax rate for Q3 2024 was 28.9%, down from 30.9% in Q3 2023, reflecting a favorable mix of pre-tax earnings.
Overall, while Quaker Houghton faced challenges in sales and profitability in Q3 2024, it demonstrated resilience through strategic acquisitions and improved net income for the nine-month period.
About QUAKER CHEMICAL CORP
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