Industrial process fluids maker Quaker Houghton’s profit fell in the second quarter as sales struggled to keep pace with surging costs.Net profit of $14.34mn in the three months to end-June fell by 57pc from the same period a year earlier. Operating profit of $31.90mn fell by 18pc during the same period..“Our earnings declined primarily due to ongoing inflationary pressures, Covid-19 disruptions in China, unfavorable foreign currency translation, geopolitical issues and other disruptions that impacted our customers and end markets,” Quaker Houghton Chief Executive Officer and President Andy Tometich said in a statement.The combination of factors increased costs and slowed the rise in sales.Other lubricant blenders have highlighted similar obstacles that also impacted their second-quarter earnings.Inflationary pressures included an unusually steep rise in raw material costs.Base oils prices surged in the first half of the year in response to tighter-than-expected supply in Europe, combined with rising crude and diesel prices.Covid-19-related disruptions in China impacted Quaker Houghton’s Asia-Pacific sales. These rose by 9pc in the second quarter. The increase slowed from a 23pc rise in sales in 2021.The war in Ukraine also impacted second-quarter sales, which fell in Quaker Houghton's Europe, Mideast Gulf and Africa segment from year-earlier levels.Sales in the Americas region rose by 24pc. The sales growth was the fastest of the three regions for a third straight quarter.The company’s second-quarter operating profit margin fell as the 22pc rise in costs outpaced the 13pc rise in sales.The profit margin of 6.48pc was down from 8.92pc during the same period a year earlier.It rose from 6.20pc in the first three months of the year. Margins got support from the implementation of higher selling prices that helped to offset the rise in raw material costs..Quaker Houghton’s Q1 profit falls.Base Oil News stories and analysis also available on ICIS platform
