KWR - Earnings call transcript Q1 2021 | Quaker Chemical Corporation

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Operator

Greetings and welcome to Quaker Houghton's First Quarter Earnings Release Conference Call. At this time, all participants are in a listen-only mode. A question-and-answer session will follow the formal presentation. [Operator Instructions] As a reminder this conference is being recorded. I would now like to turn the conference over to your host, Mr. and CEO Chairman Barry, President. Michael sir. Please go ahead

Michael Barry

Good morning, everyone.

our me Will, our Traub; are our Hostetter, today Shane CFO; General Controller. Robert Joining Global Counsel; and David

We call. our have slides for conference

them deal has over of find You pandemic. Relations the year changed the www.quakerhoughton.com. great at the section can A our in with website COVID-XX past Investor

requirements. while health of our customers' employees us priority and is meet safety For business has been to our and customers, ensuring our top to our continuity protect the and our

done well of material the our we needs our conditions chain I'm All around global are Quaker of continuing very well despite to challenging and that as plants integration. are service proud operating has the continue year customers our continue impacted as our world supply to pressures increasingly with the COVID to as customer caused current as raw availability. what meet by the team have Houghton

the strong which our COVID if strong We our sales our from EMEA are this relatively increase and the at sequential primarily Asia growth regions results. saw just flat sales revenue you XX%. growing when from between and changes ago sequentially volumes our from This I a with us. showing we all XX% of the anticipate in XX%, ago ago. was the quarter the X% is The up A showed markets. look that growth specialty to and we respectively made. soon segments very XXXX. that impact can ended Americas our continues were surprised impact exclude we from was had a this and XX% end all quarter and interesting out COVID-XX is also expect COVID-XX acquisitions segments with in Overall XX%. impact you quarter. volumes two business broad-based growth in did by come growth first revenue and we the strong XXXX, Overall and as The just of sales to were businesses year to quarter sales sequential regions pleased impact so of was think year starting also first compared as higher sales see play level in our driven fourth negative back growth. to with first year primarily were to on global quarter our being up how in were up China a But small see current our we simply recent not to Pacific by it

first I the point due impact. pre-buying quarter new growth Some it is gain want of major our customers chain say first contributed gains their of year we this this net versus also really growth of ability of in share precisely piece the out sales to had some was approximately may products market X% the due of organic replenishing quarter a our in our that to products, that share of supply our to be analysis but our to performance difficult total take to to shows business this and XXXX. and also as

continue share actively consistently gains good performance to levels given opportunities to on gains. historical these about to about working recently we and or feel market ability on. are have growing to the our our due looking to feel above share And continue we won deliver of X% we good So X% the forward,

positive sales were expected us clear raw for was a in than the in negative a our quarter higher costs. the increase While continued material

I'm stress last material lag sheer of the us say raw so far end the increased time have and the of and have and of continued continued we of times. we expected. second talked the than implement the put raw and has all through The the There longer cost materials have time ensured Overall and into But the will we've businesses raw given increasing this offset increases first chain just between a pressure increases price did that the our to our were is margins XX% effect materials impacted to downward at we operate. year. this raw downward costs of increases at fully we in raw on since pressure duration our to materials higher the raw Further, materials material tremendous knew we and continue availability additional time, customer quarter the in have While increase last proud our on the level and over logistics. that supply gross cost experienced the to quarter that. magnitude increase navigated

in year. and due in the the quarter Synergy are net results to achievement our in the sequential we're steel increase strong in due an achieved quarter also our $XX factor to to in a in we a current overall million pleased So growth. $XX last given the quarter. improvement fourth the to was as increase small we sales the with the liquidity, million sales environment saw our quarter debt the and and adjusted from operating we EBITDA market strong did working our compared in capital Relative acquisition

And of be improve EBITDA at However, second our quarter. of at the net leverage below to the expect times end X.X end first the to continued the the end from of year to times we to the currently quarter. X.X three of debt-to-adjusted ratio times

earlier costs market continuing I do some lower profitability. from the higher as margin As we and of in material factors due of gross shortages. I second second automotive lowest quarter the as the the quarter, as to terms year have to quarter look the to short-term mentioned well forward some semiconductor volume impacts of both see our expect we and headwinds raw

expected where to by expect improve of year. to the However, in the do to be and we we them margins quarters fourth end and return our sequentially third the

previous we our really floor with year, is our the a our expected about guidance, continuing end are or low EBITDA. think of which I As full

few than more However, ago. am on I months a optimistic our was I year

year in While year end expected better the expected to higher our largely the by for strong year's greater margin trends we're demand. our offset may near-term, the higher on up first we demand we're quarter, has place in seeing based slightly is profitability which changed. shape same of but the Essentially pressures the be this

fully However, short-term expected pressures the our nature in be are are margin increases price once implemented. to

year expect expected for So to we levels. exit our to expected products currently our and better demand at returning our margins largely than the

slightly feel better about largely in previous scenario our I envisioned better one though we even up than months end had expectations, as expect few So to ago. place already this a positive similar the a or I

our to essentially leverage profitability above We a step will adjusted net the to by of share taking targeted grow change integration continue in synergies EBITDA cost our have debt and market our complete reach thank and of I to closing, asset. far customers of the are our at In Quaker Houghton valuable conditions us us. this differentiate by marketplace. create in be expertise to want value difficult and continuing for everything and proud how X.X. I all and colleagues our top dedication successfully whose to team in we shareholders our the and facing needs for is safety our People year. for integration our well-being ensuring a business, their critical meeting which And will most are our customers, the us is their priority in and servicing continue and so am current with given has both execution, performed helps our

and and of review Quaker have team will you be remarks. the financials now can't key for accomplish, can the pride and forward. what going some to concludes help, quarter. but I'll we both, customers that that over our for to so I now So my Houghton hand to it for And our reemphasize Shane, investors my able he prepared and for

Shane Hostetter

and Mike good Thanks, morning everyone.

statements, to during actual that into the get quarter uncertainties based to this include on subject materially. results our that like and risks expectations everyone made are are I'd cause for I forward-looking call Before differ and current remind results could to which comments

release forward-looking filed our in of review cautionary and with For these regarding XX-Q Form the further please discussion statements included our risks, statements earnings the SEC.

as risks also discussion In for reference please in our as risk could our statements. XX-Q disclosed impact first our forward-looking company Form a XXXX, well our XX-K addition, of that Form factors quarter

In And pages also yesterday. to are non-GAAP such several with provided call during charts, GAAP reference XX between are reference. charts, make call on our and consistent for addition, this reconciliations filed measures, and there in U.S. I the XX to non-GAAP Mike call press measures and release measures

start strong the quarter rounded Mike previously our to really Looking out the summarized. year, at as

net lower-than-expected offset Our partially raw due on significant was margin sales, by costs driven to record gross performance higher supply chain pressures. quarterly material by

provide which you point and discuss our call quarterly six to charts, into a our our I'll begin seven I further As to financials. in slides look performance,

Americas a XX.X% sales such GSB and growth of with segment due X% helped to of prior in pressures segments due of mainly from impacted prior made last of increased of to increase year, XX% sales significant $X.X million shortage. volumes impacts execution which compared of first net year, in largest costs additional this in the XX% our raw of associated additional line higher quarter. growth EMEA to benefit China synergies, to SG&A Gross including offsetting than global were our have other of now, the solid $XXX.X also impact compared we to but the last and the costs quarter driven APAC's the other acquisition in the recent the are by XX.X% market and story is higher similar a these initial prior higher of versus was were costs, as savings, sales facing the year each year. most last world to was facing, for year to net COVID-XX positive quarter. material of in approximately including record Notably, which primarily companies disruption. as sales input cost had rising the quarter Coral partially increase all But to offset the These X% prior back XX%, increases to to strong was up the and semiconductor the nice of we had truly growth X% December net due foreign synergies from the acquisition increases integration contributing of exchange. the and performance foreign we that effort some Coral travel strong year-over-year. acquisitions due the largely incurred net with excluding been really the quarter, by bounce XX%, top XX.X% X%. and the year. exchange in quarter, and would due due higher right This savings second well from Our to are improvement we is COVID-XX. this the COVID, the was integration of chain were due But SG&A XX.X%. situation. COGS as challenges the million as of supply manufacturing peers year, rest with one-time offset to year-over-year Net being related showed sales from acquisitions, volumes the hitting a of of global margins

So performance in growth the quarter. strong in EBITDA adjusted the net resulted first

the higher of the end to and higher As benefit tax EBITDA million which company's the a an adjusted by had trailing the of you EBITDA quarter, XX-month a increase compared in can really cost the performance. perspective, see prior drove year, the These in of XX% XX.X% to synergies year-over-year, results integration driven in a benefit recent we segments contributed EBITDA as earnings X% tax continued prior each chart adjusted recovery markets, $XXX grew of From rate from the acquisitions million. of in in eight, our quarterly effective an adjusted our of operating to year. were global XX.X% record company's $XX.X

reasonably year rate the been to expect Excluding in of items compared at current ETRs for the both consistent quarter XX% XX.X% our be our each To we to quarter XX% various note, and will tax in one-time XX.X%. period, year. would full do range last second have

year by adjusted XX%, with grew offset compared and higher due EBITDA our earnings as net the expense. to borrowing EPS lower lower interest operating expense, coupled prior partially million net -- tax to of GAAP, $X.XX our slightly a So $X rates strong of were

us and for remaining allocation our by of strategic dividends million this able I This times as $XX reduction, while which periods our of back the invest quarter, a look dividends of primarily to in X.X to such that operating our sustain leverage times of is volumes increase want to compared cash company's was opportunities reducing to Chart net is end-market debt, reported debt operating operating of its normalize. the X.X in improve As to business growth our to increase last targeted $X.X sense, paid trends which end million quarter, debt the capital. the million company an our prudent nine, our major our as quarter's committed which outflow. prioritizing we capital. a in requirements Related to pay of $XX acquisition end on continuing are as by and all includes to acquisitions level, In day-to-day liquidity, this demand where committed make the to Overall, while will cash at dramatically, Despite working driven the come to first outflow $XXX.X the sales million and we increased the needed the year. this ratio leverage requirement emphasize, of below company's cash, steel provide of tin-plating year. was of X.X summarized outflow to $XX.X cash net million of there

pickup summarize, demand to above was gains. and expectations, share strong good had recovery, continued a Quaker in So Houghton due our quarter that to end-market market a

look of remainder quarter the year. to the and the As we second

will expect Michael. to see full volume in our the we million in take than you year. from be strong Houghton. will Though, Thank we performance That We and demand we concludes still mentioned, in I increases and floor in effect QX variability our as shortage. compared $XXX we will XXXX, material raw bit back EBITDA now turn maintain as XX% that as previous for more to volume including Quaker greater prior offset, a improved cost semiconductor the achieved my remarks. guidance, the Mike your increase market adjusted interest And see it a impacts

Michael Barry

Shane. Thanks

questions. Session We will now for open up Question-and-Answer it

Operator

the comes you. of [Operator Thank question. from with Griffin first Deutsche your question line Please with Instructions] Bank. Your Katherine proceed

Katherine Griffin

question. Thanks Hi, morning. the for good taking

just on comment QX. I the lower potentially first, volumes in So wanted around to touch

I you market just I by market more variability And expect little related think maybe semiconductor a color is what variability on wondering Shane like provide and shortage. some trend in volumes you region could mentioned, just how the to if you bit QX? that was to

Michael Barry

here. Sure. our the first spend right – this could customers trying But – the for And We pre-buy in to but it's hand really to – on as do there's us feel mouth really there be factors auto – a well hard supply better. that really we analyze been were think that. to lot industry that it's hard have they're of either replenishing because and there precise as of and many of some United their in chain for so very playing the I it. example, some quarter time places their to to get the products States And at now. running trying We industry, understand steel into

these there could the places of So have – other world, been in other effects. but some of

to shortage continue as So could the well least that – to at here. there quarter just continues be another due overall as semiconductor for impact that think volume some we on

And as impact so we will things think that well.

us for volumes. to hard it's precisely on tell So our

Katherine Griffin

Okay. just the Thanks. then on margins. And gross

could just QX little and talk to more how QX. you bit you If improve in that about a expect

that taking coming if order of curious gross increase I or previous get there's other is actions to you're guidance? – think course it's through in take that but I'm price margin could to

Michael Barry

really are year, of of where the gross margins achieving to synergies were that last we the through through integration and we Yes quarters a third our – lot of in Sure. the the we back look were kind fourth at company. improving were of we

in quarter these through. marketplace. increases to and more have then large And And now first what even in do come first And increases really have through we April. increases that. more going They increases in we and fourth in And the the saw price price and quarter. do them second started to material raw did are and second more the in the came we doing those March we're are and large have in coming through quarter So the to quarter very doing quarter. to is between more continuing price we've done do the

up. kind of catching it's just So

lag we have materials time between period our of a and raw offset time them. We the and in get that talked marketplace price there's this effect our fully go that costs we about up increases to

raw successful So successful. price will it's therefore, we'll as believe price that these anticipating that be really increases do in we to and kind of mid-year. stabilize be we will begin And materials our see let's between towards and you'll the the improvement increases third sequential quarter. quarter then third get to into to fourth say, the then the quarter middle the quarter effect, of year fully second the And

Katherine Griffin

much. very Thanks

Michael Barry

Thank you.

Operator

line Please your question. from Harrison question next proceed Seaport Securities. Global Your of comes the with Mike with

Mike Harrison

morning. good Hi,

Michael Barry

morning, Good Mike.

Mike Harrison

$XX EBITDA little maybe modeling, thinking tracking came tack and number material expecting Maybe in QX it toward of keep in were $XX QX bit million raw Is I could in that in realm if other at guys mind you kind puts of QX. take million been million. and $XX numbers of some and we different the had a the, about? call maybe if we a from on perspective an the Consensus you're inflationary impact for EBITDA you're takes the that impact

Michael Barry

course, it's and we don't will we reasons said call we it's that be quarter just our But we talked that. and somewhat. analysts quarter year. of going why – when thought had of the took our down lowest about was our guidance on And the we be the to And were margin for the – this, end last our had the quarter first of of both have last that lowest that's we really And the volume year give this came We at kind on we too argue – changed that Yes. it with it in it's like then But of than hard it. this on feel say and the would the now – I raw whole expected. through demand specific – much was guidance just quarter materials do quarter that. And something that. that to higher higher –

the definitely year. to yes, our EBITDA So is transpire the of it's quarters changed for this how shape going

Mike Harrison

you're All more on bit right where raw color little materials, and maybe specific the seeing an impact. a

increase that mentioned, things seen overall you've XX% year-end. You since about

up than your plant-based crude-based in some and seeing think, how more pretty I animal-based? and gone raws probably crude-based, you your XX% those at and look of has raw plant-based what oil talk can number. also us materials, much you're about, three maybe substantially is if we base in animal-based give material buckets spend But you of rough that idea

Michael Barry

pressure one part for I area. gone really our most that groups up. all Sure. Tremendous I thing on kind have our up. mean to just It's of on supply put pressure the would tremendous say drums costs freight, constrained of one gone that, thing. not material chain all They raw have

just – precise key the So spend. the that you up. the out much don't up. across vegetable front of they the whole of look me I far get all kind board materials good just go the a whole, And when and definitely crude, but up pretty part other that raw host oils they and numbers chemicals that of used material fats come of make certainly base raw oils have at also in as additive everything a fats, There's is between our going buy we but of in animal as groupings

Mike Harrison

coming Is recovery of would your that more you pulls out is steel aluminum compared segments. this? with the here, All typically lagging just like it seems of business is a business can each as growth then of at metalworking the like of Is more primary the see metals that for metals if I kind rates and metalworking expect the the year-on-year it in taking and more at sneak right. And lag? place real-time then, one business, on it cycle look if I to to what looking

Michael Barry

of our growth Not coming we strong metalworking. -- it there's businesses, about -- know maybe catching out there a when quite COVID back and metals think in was our more business -- I I some don't quite And like last pretty is don't lag saw at out of I think initially year I we were that this in or that up of like I time coming think way. just some but -- don't as

good all showing pretty I for are been to these in we external of what think the markets that businesses. have consistent see them -- growth

Mike Harrison

right. very All Thanks much.

Michael Barry

Mike. Thanks,

Operator

Alexander question comes next with Your from Laurence of the line Jefferies.

Dan Rizzo

everyone morning. on Rizzo Dan doing? How Laurence. It's Good for is

Michael Barry

morning Dan. Good

Dan Rizzo

Good morning.

So material we -- about mentioned obviously, costs. talked you raw extensively

costs also an just people costs? I is just labor and -- was if it pass with important I expect of was more those a how the So conversation others is higher, difficult but extent to wondering to wondering, issue. on shipping your what customers. to obviously, are and was as wondering with costs I that's what go Because

Michael Barry

I think say impact It well. next hasn't. costs I cost biggest would the It's been raw material -- as of drums not besides for has freight costs is us and

the same those it's So -- really consider just of we things raw as materials. kind and

having with we those will customers when we're well. around conversations include as price in conversations increases those So our

Dan Rizzo

response we Okay. And took temporary there out COVID be coming then of this year in kind costs that cognizant of? should to this back year any are that you were

Michael Barry

and with less lot so a did we condition certainly, travel COVID last forth. Dan year the Well, and

much this of been that there travel. and hasn't of far year more kind So too

fact comparisons In last more versus first year quarter of travel we the did last year. probably this

that normal at in China. forth. is now really some and so certainly locked start kind perspective US as of can more a from places the to So Brazil lot but world a down India happen, right are lot. year progresses locked down that now this the place We're still and right Europe pretty have open respects around in in up the that's of still And that back we you and

not say through XXXX. see but would start had we trend I to the we as say levels to overall, year will that we had certainly So let's back some of in the come that

Dan Rizzo

final just then question. And Okay.

effect right India your going and having now. what recovering. through problem that extent? to in So, on terrible a is an was wondering production obviously, region I US that are is and Europe

Michael Barry

really we've been We between far been customers do we've -- work so but challenged to and satisfy been the meet customer able to our our with at able in it's able needs. we've us times material So far shortage, plants raw to COVID-XX our very and closely requirements, that.

So far fine doing we've been area. that in

Dan Rizzo

Thank you very much.

Michael Barry

Thanks, Dan.

Operator

question next CJS proceed the Tanwanteng from Securities. Your comes Please your with Jon line of question. with

Brendan Popson

for Good morning. Popson on This is Brendan Jon.

Just ask just you real just alluded want to and on quick to Brazil impact like but business your it, the India. on from COVID areas in

Michael Barry

Sure. of come But It and the challenging COVID. us -- or certainly issues to way. kind had has of hasn't some impacted shut customers when not us down missed employees any perform from our we've yet major with been that times been we've where able that at the perspective of down to extent have it impacted

Brendan Popson

Okay. And then CEO search? any on Great. update the

Michael Barry

search the continues No, as planned.

year, So now but be the is we search as of would that expect sometime kind get that ongoing. the to right end closer to we concluded of

Brendan Popson

Okay. then for Great. And just last me.

for about out think your and the there? M&A Just today to how seeing appetite you're pipeline

Michael Barry

Yes. Good acquisitions, and We made two this question. one year. December February in one in the of small

debt some There's point be below We we're and debt-to-EBITDA year, down really looking stage, net we we continue We've out mark be times the until said want anything at is an large by think it's would always will this X.X the our our And complete that the done, M&A at of this it's going to we say. perspective, there because get of is won't to that some hard that at and hope end year. to we the that of evaluating. levels be look to to while we a look at but able to number that smaller from acquisitions. that are them

meantime the smaller ones of at and in look these continue to hopefully there. between bring something then So now we'll out and

Brendan Popson

Okay. you. Thank

Michael Barry

you. Thank

Operator

Your Please question. comes next Sidoti. Steve with from proceed O'Hara with question your

Steve O'Hara

Good morning. taking Thanks my Hi. question. for

Michael Barry

morning, Good Steve.

Steve O'Hara

Good morning.

mean, you of thought I guess, I the than your customer at but, to were can't were and replenishment Just of purchases inventory quarter, recall going guys your year I mean, in talking that customer replenishment I the the about year? you the end low back kind expected higher inventories kind of or the, fact that inventory last

Michael Barry

weren't. we No,

Steve O'Hara

-- Okay. okay. I mean

if or being this guess, supply kind line could that's mean, thinking higher are I kind of takes is something these that mean, if I that So, thinking down could could the I maybe that orders chains process to that than rolling mean, I maybe for as of inventories used time, the previously replenish about I case, not but longer right. guess, keep it I'm expected I'm just keep maybe

Michael Barry

a in that of, It's it's Yes. there steel other supply in the our just the that's see longer I world don't visibility because say from great I places just questions is so would from so. or same for hard the -- between, a and everything customers sometimes or just the know think some to what you're see now -- We replenishment some external we to, maybe right are it's should it really for keep -- hard chain around real there's we if there of have. in know actually and on just are that. I stuff get us -- factors amount the But don't just know. I We that but regard. kind the tight think we so example that material for industry. we don't and auto what really you other kind doing. that we think don't but of, have US, have And us at that industry really in asking this It's But -- there's the I that there's possible. certainly not. happened It's disconnect in

Steve O'Hara

Okay.

there in -- the to a in you kind just back going the -- revenue, maybe -- operating a is missed or then sequentially pressures? from because it expecting in income revenue QX. of, more but just, of Okay. the And commentary standpoint, are about Was in the of it terms dip I cost

Michael Barry

reasons It's we be the down somewhat will quarter. our the be Again to hard first pressures. operating just after We think definitely cost the from to going in volumes about. talked predict

getting are as well. price increases We

be the So first prices the quarter. our will in raw versus quarter second higher

plus be somewhat margins a our higher revenue. that rate. So much But down costs because for a will again escalating the on keep be of will

gives the least that variables talking you hopefully So at about. that we're

Steve O'Hara

accept by Yes. typically No, I where an and it's to customers by process this went pricing that's where indexed mean, helpful. this you'd up here's is to do a what visible And going throughout as these your is negotiation to really fairly it say formula? up push this then, went and to it it's that of a industries opposed day. start Is it the other customers of kind to it's next and more

Michael Barry

up it. have and up why have of this up price to here's and have contracts with some going We with -- go example, really index-based that we make continually kind every we okay, But on just And major materials. pricing. our customers say various and our that's is conversation more as Sure. raw another and we're that price have went when what's costs say what's case based majority that -- is happening are where of recently, to materials negotiated in adjusts again I happening months, the just in to for know would I three definitely business but go to to some raw

-- that's the the what majority call I So part. negotiation straight would is so

Steve O'Hara

one. last sorry, -- then And Okay.

mean three-month But there depress mean expect potential are is there it of -- store year. Assuming could and of trend a and the it was that globally, how big kind kind assuming do I way is product? does to inventory to a is you going seems there continues of the lower how -- mean months first mean I of three that -- quarter, that was kind activity economic forward typically if in about buy a replenishment think throughout obviously factor they the be to -- long is that -- kind improve XQ they worth in able some long I to customer? that I then quarter? like the a And happened volumes of a I mean

Michael Barry

of months hold most don't just-in-time product. -- Yes. more of our we weeks that of of a few ship generally frequently. so of And we generally worth can hold kind or I weeks customers mean customers it's find couple type of product. a very They and things our

more? Yes. parts they their own they could amount inventory can higher making be storing parts there producing and But replenish to their So maybe the could that. of try products hold example and to they're or They could chain. cars for their do of somewhat be whatever supply

it's we that just but don't -- So more could happening, that aspect visibility well have it. be that to perfect probably as

Steve O'Hara

Okay. Thanks the time. for

Michael Barry

you. Thank

Operator

Seaport Your proceed Instructions] from a question your question. Global Mike next Harrison Securities. follow-up [Operator with with is Please

Mike Harrison

Hi.

more couple a Just for me.

XXX the of last then aerospace all, MAX It business, of thoughts Any in reduction the and was like air First a airlines big contributor pace are to from declines the on sharp is the at least impacted we as reporting by of start the recovery? Could travel. starting come maybe that aerospace positive year? lap the be obviously, seems back. travel to some

Michael Barry

down and Yes. last third year in so in Good basis first in second and first encouraged in second comparison the let's the quarter down. certainly as lot more seeing aerospace comparison. the versus quarter around aerospace or on year versus a the things bottomed mean to those forth, through are ways we and I so you year, a activity as quarter really we quarter more But third sequential prior year said in the are aerospace last go of were question. quarter say, we

back XXXX to before is be But example now. were for get let's right levels. a back us. a where will will that positive right direction in me type we it be a sequential So will That those feel we It the do we But definitely sector will to trending think, few years, of will to, that take a to -- it say, of coming be that's a levels. I be positive. great longer

Mike Harrison

a than tailwind All just then, about business? industry canning tons the you of right. could within And winning talk share business, the the over new of it of -- stream. maybe be like come? to you how there's And Are coming fair quarters you capacity on your much for on sounds in canning more that can

Michael Barry

take We've over picking as combining offering for been -- a pieces would had our can. strengthened businesses, that's share one as here. had -- have have size it's of business, marketplace. business I mentioned, to business, then customers us it example a can really the been to continue been what new the we've of can can the we of make really in been between of we better and a just -- general, in with really business has through through a say, that last year, And up tight. business Quaker the as good grown in our And that probably, the Can the we what had. years Houghton good the you pandemic Coral really we performing two the past run acquisition

Mike Harrison

All the The some for looks was price/mix is guess, volume as or maybe very right. I it looks sequential recovered even then, nicely like on down Asia year-on-year volume like even And business. X%, pricing me about Pacific improvement. there, last and one

driving as or put material inflation? we see counter the guys that lower will you And price/mix? price is positive, what So place that price to turn in increases raw

Michael Barry

Sure.

general have prices. our I in say, -- So would we lower

We have with mix our country products. for different pricing in Asia a lot of Pacific

than in perspective, So -- certainly COVID it's an look part a been from mix time Asia we lower the overall you tougher to that's India, we've can business of Pacific. of because think sometimes at fine places had, kind perspective, other be been really and what's been but the look having issue maybe when tend doing I there from where prices

I it a happening, do I issue -- more countries, increases of And anything everywhere. getting prices. of So price really lower course, than between mix view as we're kind

of mix is really more issue. it So that

Mike Harrison

to later turn that the expect then in year? positive we should And

Michael Barry

been Yet, when negatively more that. in quarter-over-quarter. we'll raw going I I would second Again, the think, sequential impacted in because should perspective, -- that depends in aspects see pricing should the our general, be a I improvement gross just of quarter, from it the -- So, pricing of margins, outstripping we you think, mix businesses. some materials upon at look definitely revenue have of really

Mike Harrison

very Understood. right. much. All Thanks

Michael Barry

Mike. you, Thank

Operator

Your next question is a follow-up from Steve O'Hara with Sidoti. Please proceed with your question.

Steve O'Hara

the Hi. direct talk you impacts or from infrastructure you Thanks curious, or businesses? follow about customers' your that any if bill about just through up. how go taking either that, possible think for might through could Maybe, from

Michael Barry

We don't industrial there's when that We way But of have into positive. for activity a happening, would quantifying translate more should a think it certainly us. at of this be a a it positive point. lot

Steve O'Hara

there the I of last And terms boost is but idea last -- different, And are the any then, time? of last of you recollection much do have in maybe But proposal kind smaller. saw any Okay. if was curious maybe much mean, think I sizes I just -- obviously, I of from any what you kind mean, was there's time.

Michael Barry

a it Yes. to don't if think us major just what's magnitude, Again, really as depends, there's more is going something more It that you products is type more us, really people help sold. as guess, cars It metal I will I type mentioned. the being of are of and buy help event. but

it's So really for stage. this at to quantify hard us it

Steve O'Hara

color. right. All Okay. Thanks. Appreciate the

Michael Barry

Steve Thanks,

Operator

remarks. Barry back Ladies we Mr. Michael end and to would And session. question-and-answer to gentlemen, closing like the call have for the reached I the turn of

Michael Barry

Okay.

thank conference are you call going no now. will other there Given of today. end questions, to all your I'm interest for we the And

for or you call please again myself. feel And in second meantime, be free have August. for to conference questions quarter or July next late early Quaker will Our in any interest Thanks Houghton. your the if contact in Shane the

Operator

Ladies gentlemen, and this concludes today's conference.

participation. at all for lines you your disconnect time. Thank your may this You

Quaker Chemical (KWR) 9 May 212021 Q1 Earnings call transcript