Quaker Houghton’s Q1 profit falls

Industrial process fluids maker Quaker Houghton saw profit extend its fall in the first three months of the year as cost pressures outweighed strong demand and higher selling prices.

Net profit of $19.82mn in the first three months of the year fell by 49pc from $38.63mn during the same period a year earlier. Gross profit fell by 6pc to $146.07mn.

Profit fell as costs rose by 20pc to $328.10mn.

Pennsylvania, US-based Quaker Houghton cited “significant increases in raw material and other costs” for the higher costs.

Global base oil prices have surged in recent months in response to higher crude and diesel prices and tighter availability of supplies in US and especially in Europe.

The higher costs outpaced the 10pc rise in sales to $474.17mn in the first three months of the year.

Sales rose mostly because of higher selling prices for Quaker Houghton’s products.

“Looking ahead, we are implementing further aggressive and strategic pricing actions to mitigate the current and expected inflationary pressures on our business,” he said.

With costs rising faster than sales, Quaker Houghton’s gross profit margin fell to 30.8pc in the first quarter of the year. The margin was down from 36.3pc during the same period a year earlier and the lowest in more than seven years.