Quaker Houghton, the global leader in industrial process fluids, announced its second quarter 2024 results yesterday.

Net sales in the second quarter of 2024 were US$ 463.6 million, a decline of approximately 6% compared to US$ 495.4 million in the second quarter of 2023.  This result was primarily due to a decrease in selling price and product mix of approximately 4%, a decline in sales volumes of approximately 1% and an unfavorable impact from foreign currency translation of 1%. 

The decrease in selling price and product mix was primarily attributable to our index-based customer contracts.  The decline in sales volumes was primarily attributable to a continuation of soft end market conditions, primarily in the EMEA and Americas segments, partially offset by an improvement in volumes in the Asia/Pacific segment and new business wins across all segments.

The company reported net income in the second quarter of 2024 of US$ 34.9 million, or US$ 1.94 per diluted share, compared to net income of US$ 29.3 million, or US$ 1.63 per diluted share, in the second quarter of 2023.  Excluding non-recurring and non-core items in each period, the Company's non-GAAP net income and earnings per diluted share were US$ 38.2 million and US$ 2.13 respectively in the second quarter of 2024 compared to US$ 34.8 million and US$ 1.93 respectively in the prior year. 

The Company generated adjusted EBITDA of US$ 84.3 million in the second quarter of 2024, an increase of 5% compared to US$ 80.2 million in the second quarter of 2023, primarily driven by an improvement in gross margins in all segments compared to the prior year.

Andy Tometich, Chief Executive Officer and President, commented, "Quaker Houghton achieved solid results in the second quarter, demonstrating the resilience of our business and delivering year-over-year and sequential earnings growth.  We continue to outperform our end markets, driven by the team's focus and execution, earning profitable new business by enhancing our customer's operations.  Segment margins have also improved year-over-year for the 8th consecutive quarter, helping to mitigate the continued soft end market conditions, primarily in the Americas and EMEA regions.

"Looking ahead, we expect to deliver another year of earnings growth in 2024, despite the challenging end market environment which will likely persist through the end of the year.  We remain committed to advancing our enterprise strategy, enhancing our capabilities, and strengthening our leading portfolio of products and technical capabilities to drive efficiencies and further reinforce the relationship with our customers.  Our balance sheet and cash flow generation are strong, which support our balanced capital allocation strategy and we are well positioned to accelerate our long-term growth initiatives and drive value creation."