Quaker Chemical Corporation (NYSE:KWR) Q1 2018 Earnings Conference Call Transcript

May 01, 2018 • 08:30 am ET

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Quaker Chemical Corporation (NYSE:KWR) Q1 2018 Earnings Conference Call Transcript

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Q & A
Operator
Operator

Thank you. The floor is now open for questions. (Operator Instructions) Our first question is coming from Edward Marshall of Sidoti & Company. Please go ahead.

Analyst
Edward Marshall

Good morning, guys. How are you?

Executive
Michael F. Barry

Good. Good morning, Ed.

Executive
Mary Dean Hall

Well. Thanks.

Analyst
Edward Marshall

Yeah. Good morning. So let me just start with the volume, and looked a little bit weak, only up 1%. I know exiting (ph) a few things in EMEA, it looks like goes up 4%, but then still seems like it's under trend from the prior quarters. Is something in particular that was going on there that you can address at the markets that you serve slow a little bit? I noticed that you said that was just up 2% for the market.

Executive
Michael F. Barry

Yeah. I mean, if you look at some of the markets that we were in, steel, especially cold-rolled steel and so forth, relatively essentially almost flat, automotive was roughly in that 2% range, but having seen some conflicting things around that. So overall we estimated to be around 2%, which is not consistent, really, of what were our expectations going forward. We expect these are kind of markets to be in that kind of modest growth range. And you're right, I mean, I think compared to last year, we had some of the higher growth in both the steel and automotive markets, but this is always where -- our expectations for longer term, these markets.

Analyst
Edward Marshall

As you layer in Houghton. I don't want to get too far ahead. Does that layer in Houghton on your core markets here? Do you think that their volume of markets are growing faster than the market -- than the Quaker market themselves?

Executive
Michael F. Barry

And so -- they are uncertain markets that we're not as large, and so for aluminum, for example, which would have, I think, generally higher growth characteristics for aerospace. They have a bigger position than we do. They do it. They definitely are much more diverse in their end-use markets around another working as well. How that all pans out, I think, we're still in this modest range, I think thus a few percent market growth.

Analyst
Edward Marshall

Got it. And then when we look at the tariffs that were on then warrant -- or at least the way kind of customer reaction, was there a sourcing more in North America, kind of discussion that may have occurred, maybe softer in Asia, picked up a little bit more in North America? And how do you think now that we're kind of half of these tariffs that might change?

Executive
Michael F. Barry

We don't -- and Ed (ph), we don't feel the tariffs really have a meaningful impact on Quaker, because we generally have equal shares in the steel business everywhere around the world. So if there were shifts and we haven't seen, I would say, too many shifts at this point, but if there were shifts, we don't expect it to impact as that much.

Analyst
Edward Marshall

Got it. And the final question from me is, I'm just trying