Afton Chemical and Valvoline each posted strong earnings for the quarter ending June 30, while profits were down slightly for Fuchs Petrolub and Quaker Chemical, compared to year-earlier results.
NewMarkets Afton Chemical subsidiary reported sales of $617.5 million in the second quarter, up 6.2 percent from $581.3 million in the year earlier period.
Operating profit for the additives segment totaled $109.1 million, up 11.6 percent from $97.8 million in 2013s second quarter. We are pleased with the results of our petroleum additives segment and the overall performance of our business during the first half of this year, NewMarket President and CEO Thomas Gottwald said in the companys earnings release.
Richmond, Va.-based NewMarket posted $66.8 million in overall net income or $5.24 per diluted share in the second quarter, up 4.4 percent from $64 million in net income, or $4.81 per diluted share in the year-ago period.
Ashland reported $90 million in operating income for its Valvoline segment during the three months ending June 30 (the third quarter of Ashlands fiscal year), up almost 17 percent from $77 million in the year-earlier quarter. Valvolines sales in the quarter totaled $532 million, up 3.7 percent from $513 million in the year-ago quarter.
The company said in its earnings release that Valvoline continued on course for a very strong year after reporting growth across all channels in the third quarter.
The international channel reported 10 percent volume growth, with particular strength in Europe and Latin America, the company stated. Same-store sales at company-owned Valvoline Instant Oil Change stores grew more than 3 percent year-over-year, driven by increased oil changes per day, higher average ticket price and higher premium-brand sales. The do-it-yourself channel delivered year-over-year revenue growth behind a strong summer promotion schedule. The installer channel reported 8 percent volume growth as a result of improvements in sales and marketing execution.
Covington, Ky.-based Ashland as a whole reported operating income of $143 million, on revenues of $1.6 billion.
Fuchs Petrolub Group reported earnings after tax of 52.6 million (U.S. $70.6 million) for the second quarter, down 6.1 percent from 56 million in the year-earlier quarter.
Mannheim, Germany-based Fuchs sales revenue reached 462.5 million for the second quarter, down 1.2 percent. Compared to a year earlier, second quarter revenue declined 1.9 percent in Europe to 276.5 million, edged up 0.4 percent to 126.7 million in Asia-Pacific and Africa, and fell 1.9 percent to 77.9 million in North and South America.
The company noted in its interim management report that organic increases in sales revenue in Central and Eastern Europe were not quite able to compensate for lower sales revenues in Germany. In Asia-Pacific, the companies in China and Singapore in particular achieved high increases in absolute and relative terms, Fuchs said. However, currency effects almost completely eroded this growth. All currencies in the region were weaker relative to the euro than in the same period of last year.
Fuchs said that until April 2014, lubricant demand in Japan, Germany, Korea, France, Italy and Spain increased approximately 1 percent over the same period in 2013. In the U.S., on the other hand, lubricant consumption in the early months of 2014 is likely to have declined due to weather conditions, the company stated in its report. The increase in the demand for lubricants in the emerging markets is also likely to be slightly lower than anticipated. From todays perspective, we expect the global lubricant market to grow by around 1 percent in 2014.
Conshohocken, Pa.-based Quaker Chemicals net sales reached $191.3 million in the second quarter, up 3.5 percent from $184.8 million in the year earlier quarter.
The industrial lubricants and metalworking fluids manufacturer posted net income of $15.4 million, down 4 percent from $16.1 million in 2013s second quarter.
We experienced good growth in North America and China, a continued modest recovery in Europe after the long economic downturn, and a significant decline in South America, primarily due to exchange rates and poor economic conditions, Michael Barry, chairman, CEO and president, said in the companys earnings release.