Quaker Chemical Corporation, headquartered in Conshohocken, Pennsylvania, is a leading global provider of process chemicals, chemical specialties, services, and technical expertise to a wide range of industries-including steel, automotive, mining, aerospace, tube and pipe, coatings, and construction materials. Quaker's products, technical solutions, and chemical management services enhance its customers' processes, improve their product quality, and lower their costs.
2008 was a significant year for Quaker, filled with challenges, change and positive steps forward. Through September 2008, Quaker reported record sales and EBITDA, despite unprecedented raw material cost increases, and the stock price hit an all-time high. During the fourth quarter, Quaker felt the impact of the global economic downturn with volumes declining 25%, compared to prior-year levels as many customers took extended downtimes. As a result, we reported a loss of $.25 per share for the fourth quarter. While FY 2008 earnings were $1.05 per share, it was clear that we needed to change with market realities.
Quaker took aggressive actions in late 2008 and early 2009 to adjust its cost structure and to significantly reduce discretionary spending. These actions helped ensure that Quaker remains profitable and emerges from the economic downturn as a strong competitor.
While 2009 will be a challenging year, our continued focus on customer intimacy and process knowledge, as well as our global reach, will sustain us through this difficult period. We continue to expect significant and profitable growth in China in Steel and Metalworking, and we believe we are well positioned to take advantage of growth prospects in Brazil, Russia, India and the Middle East. We are investing in new Coatings products and technologies and expanding our Middletown, Ohio facility as planned.
2008 also marked a significant change in Quaker’s management. In October, Ronald J. Naples retired as CEO after 13 years, and Michael F. Barry, from within the organization, was named CEO and President. In May 2009, Mr. Barry was also named Chairman of the Board.
Michael F. Barry, Chairman, CEO and President, commented, "While 2009 will be a challenging year for Quaker, I remain confident that our business model, strong leadership team and strong associate base, key growth initiatives, and our solid balance sheet will get us through this difficult period in our business and industry in a profitable manner and position us well for the future."
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