BUENOS AIRES, Argentina, Feb. 27 /PRNewswire-FirstCall/ -- EDENOR S.A.
(NYSE: EDN) announces the following Webcast:
What: Edenor Fourth Quarter 2008 Earnings Conference Call
When: Friday, February 27, 9 AM EDT
Where: http://www.videonewswire.com/event.asp?id=56083
How: Live over the Internet --
Simply log on to the web at the address above.
Contact: Ivana Del Rossi, (54 11) 4346 5127, irossi@edenor.com,
investor@edenor.com
If you are unable to participate during the live webcast, the call will be
archived at http://www.edenor.com
To listen by phone
English: (888) 233 8286
(973) 935 8877
Conf. ID: EDENOR
HOUSTON, Feb. 27 /PRNewswire-FirstCall/ -- Harvest Natural Resources, Inc. (NYSE: HNR) today provided an update on operations of its 32 percent owned Venezuelan affiliate, Petrodelta, S.A. (Petrodelta).
Highlights include:
Production from Venezuela in 2008 was approximately 7.3 million barrels of oil equivalent (BOE), including 5.5 million barrels of oil and 10.7 billion cubic feet (Bcf) of natural gas.
Petrodelta's oil production has increased to a high of 19,500 barrels of oil per day (BOPD) and is averaging 18,300 BOPD in February 2009 to comply with output requirements of Venezuela in accordance to its OPEC production quota.
Petrodelta has drilled and completed ten new wells since re-commencing drilling operations in April 2008.
Harvest's 32 percent share of Petrodelta's proved reserves are 43.3 million BOE with approximately 79 percent associated with oil, at year end 2008.
PRODUCTION AND DRILLING OVERVIEW
During 2008, Petrodelta drilled and completed eight development wells and produced approximately 5.5 million barrels of oil, an increase of 1.9 percent over the previous year. Petrodelta also sold 10.7 Bcf of natural gas, a decrease of 20 percent from 2007 due to reservoir management of gas production. On a barrel of oil equivalent basis, Petrodelta sold and produced 7.3 million BOE in 2008, as compared to 7.6 million BOE in 2007.
In review, Harvest Vinccler had two rigs drilling development wells during the second half of 2004, which dramatically increased production from approximately 20,000 BOPD to over 30,000 BOPD in only six months. In January 2005, drilling operations were suspended as Harvest's Venezuelan operations began the process of converting into a mixed company. During the conversion process, production fell to approximately 12,200 BOPD. Drilling operations re-commenced in April 2008 and ten new wells were drilled. Production rates have increased 56 percent to 19,000 BOPD during this period.
Petrodelta has been advised by the Venezuelan Government that production output will remain at approximately 16,000 BOPD effective January 1, 2009, consistent with current OPEC production quotas. However, Petrodelta has been permitted to produce above this guidance for compliance with Venezuela's overall quota, as determined by OPEC.
Drilling and production operations are presently focused in the Uracoa and Temblador fields. Currently, Petrodelta is operating two rigs in the Uracoa field and one rig in the Temblador field. Petrodelta has completed two oil development wells thus far in 2009. In Temblador, drilling operations are targeted to develop previously not accessed portions of the field, and the first new development well was completed in February 2009 with initial production in excess of 1,800 BOPD. Temblador operations were transferred to Petrodelta in February 2008 and production has been increased from 1,200 BOPD to 4,900 BOPD by drilling one well, four workovers and opening of two idle wells. For 2009, the initial drilling program includes plans for drilling development and appraisal wells for maintaining production capacity and appraising the substantial resource bases in the presently non-producing Isleno and El Salto fields.
In addition, Petrodelta shareholders have agreed that the company will remain self-funding and rely solely on internally-generated cash flow to fund operations.
James Edmiston, Harvest's President and Chief Executive Officer said, "Our Venezuelan business continues to post strong operational results in spite of the recent slowdown. I am particularly pleased with the outstanding results in the newly-acquired Temblador Field. The successes to date underscore what we believe is a very bright future for Petrodelta as it continues to develop its world-class asset base."
RESERVES OVERVIEW
At December 31, 2008, Harvest's 32 percent interest in Petrodelta's proved reserves was 43.3 million BOE, consisting of 34.2 million barrels of oil and 54.2 Bcf of natural gas, in accordance with SEC rules. Approximately 79 percent of the company's proved reserves were oil and had a present value discounted at ten percent of $111.4 million, providing nearly 19 years of projected production.
Harvest's probable and possible reserves under SPE/WPC reserve definitions were independently estimated at 33.5 million BOE and 77.9 million BOE, respectively, representing a large multi-year inventory of drilling locations.
The company does not expect to incur any impairment charges related to changes in 2008 proved reserves from the previous year.
Mr. Edmiston continued, "Our balance sheet remains strong and provides Harvest with the financial stability required to endure the current volatility in the world energy and financial markets without sacrificing our growth objectives. We remain focused on our strategy to diversify operations into areas where we have operational control and the ability to apply our technical expertise to build long-term shareholder value."
About Harvest Natural Resources
Harvest Natural Resources, Inc. headquartered in Houston, Texas, is an independent energy company with principal operations in Venezuela, exploration assets in the United States, Indonesia, West Africa and China and business development offices in Singapore and the United Kingdom. For more information visit the Company's website at http://www.harvestnr.com.
"Cautionary note to investors - The United States Securities and Exchange Commission (SEC) permits oil and gas companies, in their filings with the SEC, to disclose only proved reserves that a company has demonstrated by actual production or conclusive formation tests to be economically and legally producible under existing economic and operating conditions. We use certain terms in this press release such as prospective resources, probable reserves, possible reserves, non-proved reserves or other descriptions of volumes of reserves, that SEC guidelines strictly prohibit us from including in filings with the SEC. These estimates are by their nature more speculative than estimates of proved reserves and accordingly, are subject to substantially greater risk of being actually realized by the Company. Investors are urged to consider closely the disclosure in our 2007 Annual Report on Form 10-K and our other public filings with the SEC, available from us on our website at www.harvestnr.com or by submitting a request to us at Harvest Natural Resources, Inc., 1177 Enclave Parkway, Suite 300, Houston, Texas, 77077, Attention: Investor Relations. You can also obtain these filings from the SEC by calling 1-800-SEC-0330 or from the SEC's website at www.sec.gov."
"This press release may contain projections and other forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. They include estimates and timing of expected oil and gas production, oil and gas reserve projections of future oil pricing, future expenses, planned capital expenditures, anticipated cash flow and our business strategy. All statements other than statements of historical facts may constitute forward-looking statements. Although Harvest believes that the expectations reflected in such forward-looking statements are reasonable, it can give no assurance that such expectations will prove to have been correct. Actual results may differ materially from Harvest's expectations as a result of factors discussed in Harvest's 2007 Annual Report on Form 10-K and other public filings."
BASEL, Switzerland, Feb. 27 /PRNewswire-FirstCall/ -- Speaking yesterday at the 2009 USDA Outlook Forum in Washington D.C., Syngenta CEO Mike Mack highlighted the crucial role that agricultural technology can play in improving global food security. "In the face of persistent and growing global challenges, such as rising population, exacerbated by changing diets, limited farmland availability and more erratic climatic conditions, the need to ensure food security and environmental safety is essential. A full modern toolbox including biotechnology, crop protection and seed care is vital to provide solutions," Mack said.
Mike Mack highlighted the importance of science and research in finding alternative sources of energy, combating water scarcity and protecting biodiversity. "Some $30 billion worth of crops were lost to drought in 2007, and at the same time, the world is increasingly looking to biofuels to meet our energy needs," he continued. "Our innovative products allow us to unlock the potential of plants, enabling us to do more with less - feed more people, produce more fuel and fiber, while using less water and decreasing the carbon footprint of agriculture."
"We have just begun realizing the promise of agricultural technology. As amazing as the products we have already produced are, we are only at the early stages of the learning curve," concluded Mack.
Mike Mack spoke alongside other speakers including Tom Vilsack, Secretary of Agriculture, US Department of Agriculture and Lawrence H. Summers, Assistant to President Obama for Economic Policy and Director of the National Economic Council.
Syngenta is one of the world's leading companies with more than 24,000 employees in over 90 countries dedicated to our purpose: Bringing plant potential to life. Through world-class science, global reach and commitment to our customers we help to increase crop productivity, protect the environment and improve health and quality of life. For more information about us please go to www.syngenta.com
This document contains forward-looking statements, which can be identified by terminology such as 'expect', 'would', 'will', 'potential', 'plans', 'prospects', 'estimated', 'aiming', 'on track' and similar expressions. Such statements may be subject to risks and uncertainties that could cause the actual results to differ materially from these statements. We refer you to Syngenta's publicly available filings with the U.S. Securities and Exchange Commission for information about these and other risks and uncertainties. Syngenta assumes no obligation to update forward-looking statements to reflect actual results, changed assumptions or other factors. This document does not constitute, or form part of, any offer or invitation to sell or issue, or any solicitation of any offer, to purchase or subscribe for any ordinary shares in Syngenta AG, or Syngenta ADSs, nor shall it form the basis of, or be relied on in connection with, any contract therefore.
Syngenta International AG
Media Office
CH-4002 Basel
Switzerland
Tel: +41 61 323 23 23
Fax: +41 61 323 24 24
www.syngenta.com
Media contact: Analyst/Investor contacts:
Medard Schoenmaeckers Jennifer Gough
Switzerland +41 61 323 2323 Switzerland +41 61 323 5059
USA +1 202 737 6521
John Hudson
Switzerland +41 61 323 6793
USA +1 202 737 6520
CLEVELAND, Feb. 26 /PRNewswire-FirstCall/ -- OM Group, Inc. (NYSE: OMG)
announced today financial results for the fourth quarter and full year ended
December 31, 2008.
Fourth-quarter and full-year highlights:
-- Full year 2008 net sales grew 70 percent to a record $1.7 billion,
despite a 4 percent drop in net sales during the fourth quarter compared to a
year ago.
-- Fourth-quarter net loss of $1.08 per diluted share included a non-
recurring income tax benefit of $0.71 per diluted share, a non-cash inventory
charge of $0.63 per diluted share, and a non-cash goodwill impairment charge
of $0.29 per diluted share.
-- Cash flow from operating activities climbed in 2008 to $119.7 million
in the fourth quarter, $172.1 million for the full year.
-- Cash balance at year-end was $244.8 million with additional liquidity
available from revolvers of $75 million in the US and euro 25 million in
Finland.
FOURTH-QUARTER RESULTS
Net sales for the fourth quarter of 2008 were $296.6 million compared with
$309.4 million in the corresponding period of 2007. Lower volume across most
end markets, a decrease in metal resale and lower pricing in Advanced
Materials were partially offset by the benefits from higher revenue from the
electronic technologies acquisition and favorable pricing in Advanced
Organics.
Net loss in the fourth quarter of 2008 was $32.7 million, or $1.08 per
diluted share, compared with last year's fourth-quarter net income of $48.0
million, or $1.58 per diluted share. Included in the 2008 period is a non-cash
inventory charge of $26.9 million, or $0.63 per diluted share, to reduce the
carrying value of certain inventory to market value; a non-recurring income
tax benefit of $21.5 million, or $0.71 per diluted share, related to the
company's electing to take foreign tax credits on prior-year U.S. tax returns;
and a non-cash $8.8 million charge, or $0.29 per diluted share, for goodwill
impairment.
"Like many companies, we faced rapidly deteriorating market conditions in
the fourth quarter of 2008, which partially mitigated the significant gains we
had made earlier in the year," said Joseph M. Scaminace, chairman and chief
executive officer. "The impact on profitability from this unprecedented drop
in demand during the fourth-quarter was further compounded by a steep decline
in cobalt prices. Despite these negative macroeconomic forces, we were able to
generate significant cash from operations. Coupled with our low level of debt,
we are pleased with the financial flexibility we created for the company
during the year."
Gross profit fell to $3.6 million, or 1.2 percent of sales, in the fourth
quarter of 2008 versus $84.2 million, or 27.2 percent of sales, in the
comparable 2007 quarter. The decline is attributable primarily to the lower
volumes and the rapid decline in the cobalt reference price and its effect on
selling prices relative to raw material costs. Included in the 2008 period was
an inventory adjustment of $26.9 million to reduce the carrying value of
certain inventory to market value.
Selling, general and administrative (SG&A) expenses increased to $40.7
million, or 13.7 percent of sales, in the fourth quarter of 2008 compared with
$28.7 million, or 9.3 percent of sales, in the fourth quarter of 2007, due
primarily to the acquired electronic technologies businesses that were not
included in the 2007 period.
Operating loss in the fourth quarter of 2008 was $46.0 million compared
with operating profit of $55.5 million in the prior-year period, driven
primarily by the decline in gross profit and an $8.8 million goodwill
impairment charge.
Loss from continuing operations was $33.0 million, or $1.09 per diluted
share, in the fourth quarter of 2008, compared with income from continuing
operations of $46.4 million, or $1.53 per diluted share, in the fourth quarter
of 2007. Income tax in the fourth quarter of 2008 was a net benefit of $18.8
million, which includes the foreign tax credit benefit of $21.5 million
previously mentioned and income tax expense of $21.1 million related to
earlier periods of 2008, due to a change in the effective income tax rate for
the full year 2008 made during the fourth quarter.
Net cash provided by operating activities in the fourth quarter of 2008
was $119.7 million compared with $12.2 million in the fourth quarter of 2007.
The increase was the result of lower net working capital driven primarily by
lower cobalt prices.
FULL-YEAR RESULTS
Net sales for 2008 were a record $1.7 billion compared with $1.0 billion
in 2007. The improvement was driven by higher product selling prices,
acquisitions, increased cobalt metal resale and sales volume growth. 2008 net
income was $135.0 million, or $4.45 per diluted share, compared with $246.9
million, or $8.15 per diluted share, in 2007. Included in the results from
2007 are $63.1 million of income from discontinued operations and a $72.3
million gain on the sale of discontinued operations, both related principally
to the Nickel business that was sold in the first quarter of 2007. Income from
continuing operations was $134.9 million, or $4.45 per diluted share, for 2008
compared with $111.5 million, or $3.68 per diluted share, in 2007.
Gross profit rose to $352.5 million in 2008 compared with $313.2 million
in 2007. As a percentage of net sales, gross profit fell to 20.3 percent from
30.7 percent, due primarily to the rapid decline in the cobalt reference price
in the second half of the year and its effect on selling prices relative to
raw material costs as well as $27.7 million in adjustments to reduce the
carrying value of certain inventory to market value.
SG&A expenses were $166.1 million in 2008 compared with $117.0 million in
2007. The increase was due primarily to expenses from the acquired coatings
and electronic technologies businesses. Operating profit fell to $177.6
million, or 10.2 percent of sales, in 2008 versus $196.2 million, or 19.2
percent of sales, in 2007.
Net cash provided by operating activities rose to $172.1 million in 2008
compared with $41.0 million last year. This improved performance was
attributable to higher income from continuing operations and cash provided by
working capital as cobalt prices fell in the second half of 2008. Cash
provided by operations as well as available credit facilities should provide
adequate liquidity for OMG's working capital, debt service and capital
expenditure requirements in 2009.
BUSINESS SEGMENT RESULTS
Advanced Materials
In the fourth quarter of 2008, net sales for the Advanced Materials
segment were $194.1 million compared with $222.3 million in the fourth quarter
of last year. The decrease was driven by lower sales volume of metal resale,
lower product selling prices due to a decrease in the reference price for
cobalt, and lower overall volume. Excluding metal resale and copper by-product
sales, volume fell 4 percent in the fourth quarter of 2008 compared with the
same quarter last year.
Operating loss for the segment for the fourth quarter was $16.0 million
compared with a profit of $64.5 million in the prior-year quarter. The impact
of a rapid decline in cobalt reference price, lower volume and higher
manufacturing and non-cobalt raw material costs led to the decline in profit.
For the 2008 fourth quarter, cobalt prices averaged $20.81 per pound compared
with $32.54 per pound during the third quarter of 2008 and $32.68 per pound
during the fourth quarter of 2007. The current period includes an inventory
charge of $19.9 million to reduce the carrying value of certain inventory to
market value.
Full year 2008 net sales for the segment were $1.2 billion, compared with
$721.9 million in 2007. Increased product selling prices, higher cobalt metal
resale and copper by-product sales, and higher volumes contributed to the
increase. Operating profit fell to $203.5 million in 2008 compared with $212.6
million in 2007 due to $20.7 million of inventory charges to reduce the
carrying value of certain inventory to market value, an unfavorable currency
impact and increased manufacturing and non-cobalt raw material costs. These
decreases were partially offset by higher volume, favorable pricing and
increased copper by-product sales.
Specialty Chemicals
Net sales from the Specialty Chemicals segment were $102.7 million in the
fourth quarter of 2008 compared with $87.2 million in the same quarter last
year. The improvement was due primarily to acquisitions and higher selling
prices in Advanced Organics, partially offset by lower volumes.
Operating loss was $19.1 million in the fourth quarter of 2008 compared
with operating profit of $3.1 million in the prior-year quarter, due to lower
volume, a $7.0 million inventory charge to reduce the carrying value of
certain inventory to market value, additional expenses from the newly acquired
businesses and the goodwill impairment charge.
Full year 2008 net sales for the segment increased to $546.7 million,
compared with $303.9 million in 2007. Acquisitions and increased product
selling prices were the main factors leading to the sales improvement,
partially offset by lower volumes. Operating profit was $11.2 million in 2008
compared with $18.2 million in 2007 as benefits from acquisitions were offset
by decreased volume, the charge for goodwill impairment and inventory
adjustments.
OUTLOOK
"At the present time, we see no immediate recovery from the prevalent
uncertainty and weak end-market demand created in the fourth quarter of 2008,"
said Scaminace. "Likewise, we expect cobalt prices in 2009 to remain lower on
a year-over-year basis, which will further challenge our relative earnings
potential. While both will influence the rate at which we can continue to
implement our growth strategy in 2009, our focus and resolve to achieve our
stated goals of delivering sustainable and profitable volume growth and
driving consistent financial performance remain unchanged."
Scaminace noted that the company is dealing with the uncertain economic
outlook by implementing a number of additional cost containment measures aimed
at further leveraging margin growth and profitability, including eliminating
2009 salary increases where possible, reducing headcount, reprioritizing
capital projects and cutting discretionary spending. "With the benefit of a
strong, clean balance sheet, we are cautiously optimistic that we are in a
sound position to manage through the economic uncertainty ahead," Scaminace
concluded.
WEBCAST INFORMATION
OM Group has scheduled a conference call and live audio broadcast on the
Web for 10 a.m. Eastern time today. Investors may access the live audio
broadcast by logging on to www.omgi.com. A copy of management's presentation
materials will be available on OMG's Web site at the time of the call. The
company recommends visiting the Web site at least 15 minutes prior to the
webcast to download and install any necessary software. A webcast audio replay
will be available on the "Investor Relations - Presentations" page of the
company's Web site three hours after the call.
ABOUT OM GROUP, INC.
OM Group, Inc. is a diversified global developer, producer and marketer of
value-added specialty chemicals and advanced materials that are essential to
complex chemical and industrial processes. Key technology-based end-use
applications include affordable energy, portable power, clean air, clean
water, and proprietary products and services for the microelectronics
industry. Headquartered in Cleveland, Ohio, OM Group operates manufacturing
facilities in the Americas, Europe, Asia and Africa. For more information,
visit the company's Web site at http://www.omgi.com/.
FORWARD-LOOKING STATEMENTS
The foregoing discussion may include forward-looking statements for
purposes of the safe harbor provisions of the Private Securities Litigation
Reform Act of 1995. Such forward-looking statements are based upon specific
assumptions and are subject to uncertainties and factors relating to the
company's operations and business environment, all of which are difficult to
predict and many of which are beyond the control of the company. These
uncertainties and factors could cause actual results of the company to differ
materially from those expressed or implied in the forward-looking statements
contained in the foregoing discussion. Such uncertainties and factors include:
the potential impact that the recent global economic and financial market
crisis may have on our business and operations, including future goodwill
impairments; the direction and pace of our strategic transformation, including
identification of and the ability to finance potential acquisitions; the
operation of our critical business facilities without interruption; the speed
and sustainability of price changes in cobalt; the potential for lower of cost
or market write-downs of the carrying value of inventory necessitated by
decreases in the market price of cobalt or the selling prices of the Company's
finished products; the availability of competitively priced supplies of raw
materials, particularly cobalt; the demand for metal-based specialty chemicals
and products in the Company's markets; the impact of environmental regulations
on our operating facilities and the impact of new or changes to current
environmental, health and safety laws on our products and their use by our
customers; the effect of fluctuations in currency exchange rates on the
Company's international operations; the effect of non-currency risks of
investing and conducting operations in foreign countries, including political,
social, economic and regulatory factors; the effect of changes in domestic or
international tax laws; and the general level of global economic activity and
demand for the Company's products.
OM Group, Inc. and Subsidiaries
Condensed Consolidated Balance Sheets
December 31, December 31,
2008 2007
(In thousands)
ASSETS
Current assets
Cash and cash equivalents $244,785 $100,187
Accounts receivable 130,217 178,481
Inventories 306,128 413,434
Other current assets 114,286 64,431
Total current assets 795,416 756,533
Property, plant and equipment, net 245,202 288,834
Goodwill 268,677 322,172
Intangible assets 84,824 46,454
Notes receivable from joint venture
partner 13,915 24,179
Other non-current assets 26,393 31,038
Total assets $1,434,427 $1,469,210
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities
Short-term debt and current
portion of long-term debt $80 $513
Accounts payable 89,470 214,244
Accrued income taxes 17,677 32,040
Accrued employee costs 31,168 34,707
Other current liabilities 21,074 25,435
Total current liabilities 159,469 306,939
Long-term debt 26,064 1,136
Deferred income taxes 26,764 29,645
Minority interests 47,429 52,314
Other non-current liabilities 44,052 50,790
Total stockholders' equity 1,130,649 1,028,386
Total liabilities and stockholders'
equity $1,434,427 $1,469,210
OM Group, Inc. and Subsidiaries
Condensed Statements of Consolidated Income
Three Months Ended For the Year Ended
December 31, December 31,
2008 2007 2008 2007
(In thousands, except per
share data)
Net sales $296,599 $309,367 $1,736,849 $1,021,501
Cost of products sold
(excluding lower of cost or
market charge) 266,079 225,182 1,356,573 708,257
Lower of cost or market
inventory charge 26,922 - 27,728 -
Gross profit 3,598 84,185 352,548 313,244
Goodwill impairment 8,800 - 8,800 -
Selling, general and
administrative expenses 40,748 28,733 166,126 117,009
Operating profit (45,950) 55,452 177,622 196,235
Other income (expense):
Interest expense (305) (297) (1,597) (7,820)
Loss on redemption of Notes - - - (21,733)
Interest income 511 8,279 1,920 23,922
Foreign exchange gain
(loss) (4,613) 2,138 (3,744) 8,100
Other income (expense), net (1,348) 550 (1,913) (449)
(5,755) 10,670 (5,334) 2,020
Income (loss) from continuing
operations before income tax
(expense) benefit and
minority interest (51,705) 66,122 172,288 198,255
Income tax (expense) benefit 18,842 (18,596) (16,076) (76,311)
Minority partners' share of
(income) loss (155) (1,085) (21,301) (10,405)
Income (loss) from continuing
operations (33,018) 46,441 134,911 111,539
Discontinued operations:
Income from discontinued
operations, net of tax 303 1,546 92 63,057
Gain on sale of discontinued
operations, net of tax - - - 72,270
Total income from discontinued
operations, net of tax 303 1,546 92 135,327
Net income (loss) $(32,715) $47,987 $135,003 $246,866
Net income (loss) per common
share - basic:
Continuing operations $(1.09) $1.55 $4.48 $3.73
Discontinued operations 0.01 0.05 - 4.52
Net income $(1.08) $1.60 $4.48 $8.25
Net income (loss) per common
share - assuming dilution:
Continuing operations $(1.09) $1.53 $4.45 $3.68
Discontinued operations 0.01 0.05 - 4.47
Net income $(1.08) $1.58 $4.45 $8.15
Weighted average shares
outstanding
Basic 30,180 30,040 30,124 29,937
Assuming dilution 30,180 30,397 30,358 30,276
OM Group, Inc. and Subsidiaries
Condensed Statements of Consolidated Cash Flows
For the Year Ended
2008 2007
(In thousands)
Operating activities
Net income $135,003 $246,866
Adjustments to reconcile net income
to net cash provided by
operating activities:
Total income from discontinued
operations (92) (135,327)
Loss on redemption of Notes - 21,733
Depreciation and amortization 56,116 33,229
Share-based compensation expense 7,621 7,364
Minority partners' share of
income 21,301 10,405
Gain on cobalt forward purchase
contracts (4,002) (6,735)
Interest income receivable from
joint venture partner 3,776 (3,776)
Lower of cost or market inventory
charge 27,728 -
Goodwill impairment 8,800 -
Other non-cash items 7,358 (25,169)
Changes in operating assets and
liabilities, excluding the effect of
business acquisitions:
Accounts receivable 48,641 (38,364)
Inventories 76,985 (165,694)
Accounts payable (124,712) 92,161
Refundable, prepaid and accrued
income taxes (64,455) 17,455
Other, net (27,944) (13,144)
Net cash provided by operating
activities 172,124 41,004
Investing activities
Expenditures for property, plant and
equipment (30,712) (19,357)
Net proceeds from the sale of the
Nickel business - 490,036
Proceeds from settlement of cobalt
forward purchase contracts 10,736 -
Other investing activities 2,042 (335,430)
Net cash provided by (used for)
investing activities (17,934) 135,249
Financing activities
Payments of long-term debt and
revolving line of credit (45,513) (400,000)
Proceeds from the revolving line of
credit 70,000 -
Premium for redemption of notes - (18,500)
Payment of loan from consolidated
joint venture partner (2,657)
Distributions to joint venture
partners (26,184) (1,350)
Payment related to surrendered shares (3,251) -
Proceeds from exercise of stock
options 874 11,344
Excess tax benefit on exercise of
stock options 28 1,744
Net cash used for financing
activities (6,703) (406,762)
Effect of exchange rate changes on
cash (2,889) 1,440
Cash and cash equivalents
Increase (decrease) from continuing
operations 144,598 (229,069)
Discontinued operations - net cash
provided by operating activities - 48,508
Discontinued operations - net cash
used for investing activities - (1,540)
Balance at the beginning of the year 100,187 282,288
Balance at the end of the year $244,785 $100,187
OM Group, Inc. and Subsidiaries
Segment Information
Three Months Ended For the Year Ended
December 31, December 31,
(In thousands) 2008 2007 2008 2007
Net Sales
Advanced Materials $194,122 $222,271 $1,192,423 $721,874
Specialty Chemicals 102,739 87,196 546,675 303,897
Intersegment items (262) (100) (2,249) (4,270)
$296,599 $309,367 $1,736,849 $1,021,501
Operating profit (loss)
Advanced Materials $(16,025) $64,450 $203,545 $212,609
Specialty Chemicals (19,125) 3,132 11,168 18,176
Corporate (8,623) (11,444) (37,540) (35,807)
Intersegment items (2,177) (686) 449 1,257
$(45,950) $55,452 $177,622 $196,235
OM Group, Inc. and Subsidiaries
Non-GAAP Financial Measure
Three months ended Three months ended
December 31, 2008 December 31, 2007
$ Diluted EPS $ Diluted EPS
(in thousands, except
per share data)
Net income (loss) as
reported $(32,715) $(1.08) $47,987 $1.58
Less:
Total income from
discontinued operations 303 0.01 1,546 0.05
Income (loss) from
continuing operations -
as reported $(33,018) $(1.09) $46,441 $1.53
Special items -- income
(expense):
Election to take Foreign
Tax Credits on Prior
Year Returns 21,536 0.71 - -
Goodwill impairment (8,800) (0.29) - -
Interest income on Notes
receivable from JV partner - - 3,776 0.12
Tax expense related to
interest income on Notes
from JV partner - - (982) (0.03)
Tax expense related to
repatriation of foreign
cash - - (6,911) (0.22)
Income (loss) from continuing
operations - as adjusted
for special items $(45,754) $(1.51) $50,558 $1.66
Weighted average shares
outstanding - diluted 30,180 30,397
Year ended Year ended
December 31, 2008 December 31, 2007
$ Diluted EPS $ Diluted EPS
(in thousands except per
share data)
Net income as reported $135,003 $4.45 $246,866 $8.15
Less:
Total income from
discontinued operations 92 - 135,327 4.47
Income from continuing
operations - as reported $134,911 $4.45 $111,539 $3.68
Special items -- income
(expense):
Election to take
Foreign Tax Credits on
Prior Year Returns 46,636 1.54 - -
Goodwill impairment (8,800) (0.29) - -
REM - inventory step-up
(COGS), net of tax (1,222) (0.04) - -
Tax assessment in Canada (763) (0.03) - -
Environmental charges at
closed New Jersey site - - (3,857) (0.13)
Loss on redemption of Notes - - (21,733) (0.72)
Tax benefit related to
redemption of Notes - - 7,607 0.25
Tax expense related to
repatriation of foreign
cash - - (45,700) (1.51)
Interest income on Notes
receivable from JV partner - - 4,526 0.15
Tax expense related to
interest income on Notes
from JV partner - - (1,177) (0.04)
Income from continuing
operations - as adjusted
for special items $99,060 $3.26 $171,873 $5.68
Weighted average shares
outstanding - diluted 30,358 30,276
Use of Non-GAAP Financial Information:
"Income from continuing operations - as adjusted for special items" is a
non-GAAP financial measure that the Company's management has used as an
important metric in evaluating the performance of the Company's business for
2008. The above table presents a reconciliation of the Company's GAAP
results, as reported (both net income and income from continuing operations),
to its non-GAAP results after adjusting for the special items shown. The
Company believes that the non-GAAP financial measure presented in the above
table facilitates a comparative assessment of the Company's operating
performance by its management. In addition, the Company believes that this
non-GAAP financial measure will enhance investors' understanding of the
performance of the Company's operations during 2008 and of the comparability
of the 2008 results to the results of prior periods.
BASEL, Switzerland, Feb. 26 /PRNewswire-FirstCall/ -- Syngenta announced today that the Board of Directors will propose to shareholders at the Annual General Meeting on April 21, 2009, to name Stefan Borgas as a new member of the Syngenta Board.
Stefan Borgas (45) is Chief Executive Officer of Lonza, one of the world's leading suppliers to the pharmaceutical, healthcare and life science industries, headquartered in Basel. Prior to joining Lonza in 2004 he worked in various senior international functions for BASF. Stefan Borgas holds a degree in business administration from the University of Saarbruecken, Germany, and an MBA from the University of St. Gallen, Switzerland.
Syngenta is one of the world's leading companies with more than 24,000 employees in over 90 countries dedicated to our purpose: Bringing plant potential to life. Through world-class science, global reach and commitment to our customers we help to increase crop productivity, protect the environment and improve health and quality of life. For more information about us please go to www.syngenta.com.
Media contact: Analyst/Investor contacts:
Medard Schoenmaeckers Jennifer Gough
Switzerland +41 61 323 2323 Switzerland +41 61 323 5059
USA +1 202 737 6521
John Hudson
Switzerland +41 61 323 6793
USA +1 202 737 6520
This document contains forward-looking statements, which can be identified by terminology such as 'expect', 'would', 'will', 'potential', 'plans', 'prospects', 'estimated', 'aiming', 'on track' and similar expressions. Such statements may be subject to risks and uncertainties that could cause the actual results to differ materially from these statements. We refer you to Syngenta's publicly available filings with the U.S. Securities and Exchange Commission for information about these and other risks and uncertainties. Syngenta assumes no obligation to update forward-looking statements to reflect actual results, changed assumptions or other factors. This document does not constitute, or form part of, any offer or invitation to sell or issue, or any solicitation of any offer, to purchase or subscribe for any ordinary shares in Syngenta AG, or Syngenta ADSs, nor shall it form the basis of, or be relied on in connection with, any contract therefore.
CARLYSS, La., Feb. 25 /PRNewswire-FirstCall/ -- Global Industries, Ltd. (Nasdaq: GLBL) announced revenues of $250.4 million for the fourth quarter of 2008 compared to $263.0 million in the fourth quarter of 2007. Net loss was $27.9 million, or $0.25 per diluted share, for the fourth quarter of 2008. This compares to net income of $32.9 million, or $0.28 per diluted share, in the fourth quarter of 2007.
Revenues were $1.07 billion in fiscal year 2008 compared to $992.5 million in fiscal year 2007. Net loss was $117.4 million, or $1.03 per diluted share, in fiscal year 2008. This compares to net income of $160.0 million, or $1.36 per diluted share, in fiscal year 2007.
Commenting on the fourth quarter results, Chairman and Chief Executive Officer John A. Clerico stated, "Our recovery plan is underway at Global. During the fourth quarter, we took actions to reduce costs, conserve our cash and increase our project order backlog to $519.6 million. These actions produced positive impact during the quarter and will continue to do so in future quarters. However, the impact of these actions was more than offset during the quarter by idle vessel costs resulting from a decline in project revenues in North America OCD, West Africa and the Middle East together with added costs to complete the Camarupim project in Brazil caused by weather, mechanical downtime and the provision for anticipated additional costs as a result of future schedule delays."
Clerico continued, "We have re-dedicated ourselves to winning business, increasing our project order backlog and executing projects well for our customers. Our plan for this year is to scale our costs to match a realistic forecast of our revenues. Despite the risks and uncertainties we face, we are confident that our recovery plan will restore Global to profitability and growth."
Selling, general and administrative expenses of $21.9 million for the fourth quarter of 2008 decreased by $0.6 million over the same quarter last year, primarily due to company-wide cost control activities.
Interest income of $1.8 million for the fourth quarter of 2008 decreased by $6.9 million over the same quarter last year primarily due to decreased cash balances and lower interest rates.
The provision of $17.2 million income taxes expense on loss before taxes of $(10.7) million for the 2008 fourth quarter was primarily due to losses that could not be tax effected and lower margins in tax jurisdictions with a deemed profit tax regime where tax is calculated as a percentage of revenue.
During the fourth quarter of 2008, the Company booked $372.9 million of net new work resulting in a backlog of $519.6 million as of December 31, 2008.
A conference call will be held at 9:00 a.m. Central Standard Time on February 26, 2009. Anyone wishing to listen to the conference call may dial 888-677-0183 (domestic) or 1-773-756-0451 (international) and request connection to the "Global Fourth Quarter Earnings" call. Phone lines will open fifteen minutes prior to the start of the call. The call will also be webcast in real time on the Company's website at www.globalind.com, where it will also be archived for anytime reference until March 13, 2009.
All individuals listening to the conference call or the replay are reminded that all conference call material is copyrighted by Global and cannot be recorded or rebroadcast without Global's express written consent.
Global Industries, Ltd. is a leading offshore solutions provider of offshore construction, engineering, project management, and support services including pipeline construction, platform installation and removal, deepwater/SURF installations, IRM, and diving to the oil and gas industry worldwide. The Company's shares are traded on The NASDAQ Global Select Market under the symbol "GLBL."
This press release may contain forward-looking information based on current information and expectations of the Company that involve a number of risks, uncertainties, and assumptions. Among the factors that could cause the actual results to differ materially are: industry conditions, prices of crude oil and natural gas, the Company's ability to obtain and the timing of new projects, and changes in competitive factors. Should one or more of these risks or uncertainties materialize, or should the underlying assumptions prove incorrect, actual outcomes could vary materially from those indicated.
Set forth are the Company's results of operations for the periods indicated.
(In thousands, except earnings per share)
-----------------------------------------
Three Months Ended Twelve Months Ended
December 31, December 31,
------------------- -------------------
2008 2007 2008 2007
--------- -------- -------- --------
Results of Operations
Revenues $ 250,429 $ 263,028 $ 1,070,988 $ 992,513
Cost of operations 237,330 214,712 1,084,581 719,768
--------- ---------- ---------- ---------
Gross profit (loss) 13,099 48,316 (13,593) 272,745
Loss (gain) on asset
disposals and impairments 1,228 (2,762) 856 (4,079)
Selling, general and
administrative expenses 21,925 22,498 95,364 81,275
--------- ---------- ---------- ---------
Operating income (loss) (10,054) 28,580 (109,813) 195,549
--------- ---------- ---------- ---------
Interest income 1,768 8,706 14,477 27,966
Interest expense (3,650) (4,948) (13,624) (13,439)
Other income (expense), net 1,225 893 (641) 3,826
--------- ---------- ---------- ---------
Income (loss) before taxes (10,711) 33,231 (109,601) 213,902
Income taxes 17,213 331 7,760 53,942
--------- ---------- ---------- ---------
Net income (loss) $ (27,924) $ 32,900 $ (117,361) $ 159,960
========= ========== ========== =========
Earnings (Loss) Per
Common Share
Basic $ (0.25) $ 0.29 $ (1.03) $ 1.38
Diluted $ (0.25) $ 0.28 $ (1.03) $ 1.36
Weighted Average Common
Shares Outstanding
Basic 112,190 115,044 113,647 116,137
Diluted 112,190 116,634 113,647 117,819
Other Data
Depreciation and
amortization $ 16,228 $ 16,658 $ 64,348 $ 61,839
Backlog at End of Period $ 519,652 $713,555
Set forth are the Company's results of operations by reportable segment for the periods indicated.
RESULTS OF OPERATIONS BY REPORTABLE SEGMENT
(In thousands)
Three Months Ended Twelve Months Ended
December 31, December 31,
------------------- -------------------
2008 2007 2008 2007
--------- -------- -------- --------
Total segment revenues
North America OCD $ 22,697 $ 26,403 $ 81,137 $ 106,478
North America Subsea 42,983 32,683 146,105 150,407
Latin America 81,715 52,730 266,974 226,999
West Africa 12,213 30,775 152,877 184,651
Middle East 49,438 101,362 237,523 186,317
Asia Pacific/India 51,133 24,253 223,450 181,187
--------- ---------- ---------- ---------
Subtotal 260,179 268,206 1,108,066 1,036,039
--------- ---------- ---------- ---------
Intersegment eliminations
North America OCD -- -- -- (7,726)
North America Subsea (7,526) (4,356) (30,713) (17,867)
Latin America (650) (322) (2,724) (322)
Middle East (1,574) (500) (3,641) (17,466)
Asia Pacific/India -- -- -- (145)
--------- ---------- ----------- ----------
Subtotal (9,750) (5,178) (37,078) (43,526)
--------- ---------- ----------- ----------
Consolidated revenues $ 250,429 $ 263,028 $ 1,070,988 $ 992,513
========= ========== ============ =========
Income (loss) before taxes
North America OCD $ (3,803) $2,517 $ (17,748) $ 12,631
North America Subsea 3,365 11,454 7,377 59,849
Latin America 684 22,503 (17,938) 97,604
West Africa (16,271) (10,095) (42,035) (14,952)
Middle East (3,178) 14,541 (81,633) 29,568
Asia Pacific/India 9,654 (13,719) 40,923 11,473
Corporate (1,162) 6,030 1,453 17,729
--------- ---------- ----------- ----------
Consolidated income (loss)
before taxes $ (10,711) $ 33,231 $ (109,601) $ 213,902
========= ========== =========== ==========
CONSOLIDATED BALANCE SHEETS
(in thousands)
December 31,
2008 2007
ASSETS
Current Assets
Cash and cash equivalents $ 287,669 $ 723,450
Restricted cash 94,516 1,121
Marketable securities -- 99,935
Accounts receivable - net of
allowance of $12,070 for 2008
and $1,278 for 2007 180,018 167,469
Unbilled work on uncompleted contracts 86,011 106,716
Contract costs incurred not yet recognized 11,982 10,821
Deferred income taxes 7,223 3,827
Assets held for sale 2,181 1,002
Prepaid expenses and other 44,585 27,875
---------- ---------
Total current assets 714,185 1,142,216
---------- ---------
Property and Equipment, net 593,522 349,549
---------- ---------
Other Assets
Marketable securities - long-term 42,375 --
Accounts receivable - long-term 22,246 9,315
Deferred charges, net 72,370 43,045
Goodwill 37,388 37,388
Other 3,508 8,285
---------- ---------
Total other assets 177,887 98,033
Total $ 1,485,594 $ 1,589,798
========== =========
LIABILITIES AND SHAREHOLDERS' EQUITY
Current Liabilities
Current maturities of long term debt $ 3,960 $ 3,960
Accounts payable 207,239 169,034
Employee-related liabilities 26,113 28,366
Income taxes payable 38,649 39,683
Accrued interest payable 5,613 5,827
Advance billings on uncompleted contracts 4,609 36,691
Accrued anticipated contract losses 35,055 --
Other accrued liabilities 12,053 15,638
---------- ---------
Total current liabilities 333,291 299,199
---------- ---------
Long-Term Debt 386,380 390,340
Deferred Income Taxes 28,941 35,617
Other Liabilities 13,266 11,050
Commitments and Contingencies -- --
Shareholders' Equity
Common stock, $0.01 par value, 150,000
authorized, and 119,650 and 118,001
shares issued at December 31, 2008 and
2007, respectively 1,197 1,180
Additional paid-in capital 441,105 418,366
Retained earnings 397,845 515,206
Treasury stock at cost, 6,130 in 2008
and 2,904 in 2007 (105,038) (77,257)
Accumulated other comprehensive loss (11,393) (3,903)
---------- ---------
Total shareholders' equity 723,716 853,592
---------- ---------
Total $ 1,485,594 $ 1,589,798
========== =========
CONSHOHOCKEN, Pa., Feb. 25 /PRNewswire-FirstCall/ -- Quaker Chemical Corporation (NYSE: KWR) today announced net sales for the fourth quarter 2008 of $116.2 million, and a net loss of $2.7 million, or $0.25 per diluted share. Included in fourth quarter 2008 results is a pre-tax restructuring charge of $2.9 million, or approximately $0.18 per diluted share.
Michael F. Barry, Chief Executive Officer and President, commented, "After starting the year with three strong quarters of sales and profits, 2008 finished with disappointing results due to a dramatic falloff in customer demand around the globe and continued raw material price escalation in certain regions. However, we have taken aggressive actions to reduce our cost structure given the market realities we are facing. In addition, we have recently amended our credit facility to provide more financial flexibility during this uncertain period."
Mr. Barry continued, "We expect our overall demand for products to be lower in 2009 as a result of the global recession with gradual improvement in our volumes as the year progresses. Fortunately, we entered this significant downturn at the end of the third quarter with a strong balance sheet position as our net debt level was at the lowest point since 2005. While 2009 will be a challenging year for Quaker and our customers, we remain confident that our business model, strong associate base, key growth initiatives and solid balance sheet will get us through this difficult period in a profitable manner and position us well for the future."
Fourth Quarter Summary
Net sales for the fourth quarter were $116.2 million, down 18% compared to $142.4 million for the fourth quarter of 2007. The decrease in net sales was primarily due to volume declines in all of the Company's regions, as the global economic downturn began to impact the Company. Volumes were down approximately 25%, which were partially offset by a favorable 11% in selling price and mix. Selling price increases were realized, in part, as a result of an ongoing effort to offset higher raw material costs. Foreign exchange rate translation also decreased revenues by approximately 4%.
Gross margins were down approximately $15.5 million, or 36%, compared to the fourth quarter of 2007, reflective of the above-noted volume declines. The gross margin percentage of 24.2% was also lower than the fourth quarter 2007 gross margin percentage of 30.6%. The decline in gross margin was primarily related to continued high raw material costs which were only partially offset by higher selling prices. The remaining decline in gross margin percentage was due to the impact of manufacturing and other costs being spread over reduced volumes, as well as product and regional sales mix.
Selling, general and administrative expenses ("SG&A") decreased $8.7 million, compared to the fourth quarter of 2007. Investments in higher growth areas were more than offset by significantly lower incentive compensation, lower commissions on lower sales, as well as favorable foreign exchange rate translation. SG&A as a percentage of sales decreased to 23% compared to 25% in the fourth quarter of 2007.
In response to the significant volume declines, Quaker implemented a restructuring program in the fourth quarter of 2008, which eliminated more than 80 positions and included provisions for severance for 57 employees totaling $2.9 million. In a further effort to reduce operating costs, as volume declines continued in the U.S. and Europe and extended to other regions, Quaker implemented an additional restructuring program in the first quarter of 2009, which is expected to include provisions for severance for approximately 50 employees totaling approximately $2.5 to $3 million.
The decrease in other income was primarily the result of foreign exchange losses recorded in the fourth quarter of 2008, compared to gains in the same period of the prior year. The higher net interest expense was due to higher average borrowings and lower interest income.
Full Year Summary
Net sales for 2008 were $581.6 million, up 7% from $545.6 million for 2007. Foreign exchange rate translation increased revenues by approximately 4%. Selling price increases realized across all regions and market segments were partially offset by the fourth quarter volume declines noted above.
Gross margins were down approximately $4.9 million, or 3%, compared to 2007. The gross margin percentage of 28% was also lower than the 2007 gross margin percentage 30.8%. The decline in gross margin percentage was due to increased raw material costs partially offset by price increases, as well as product and regional sales mix.
SG&A for 2008 decreased $2.7 million compared to 2007. Investments in higher growth areas, inflationary increases and unfavorable foreign exchange rate translation were more than offset by lower incentive compensation and lower legal and environmental costs.
Effective October 3, 2008, Ronald J. Naples, Chairman, retired as Quaker's Chief Executive Officer. As further discussed in the Company's Form 8-K filed on May 13, 2008, the Company is recognizing certain accelerated and other costs, in accordance with Mr. Naples' Employment, Transition and Consulting Agreement, which are expected to total $5.8 million over the 2008-2010 period. Incremental costs incurred in 2008 totaled $3.5 million, or approximately $0.22 per diluted share.
In 2007, the Company recorded environmental charges of $3.3 million. The charges consisted of $2.0 million related to the settlement of environmental litigation involving AC Products, Inc., a wholly owned subsidiary, as well as an additional $1.3 million charge for the estimated remaining remediation costs.
The decrease in other income was primarily the result of foreign exchange losses recorded in 2008, compared to gains in the prior year. Other income for 2008 also includes a net arbitration award of approximately $1.0 million, or approximately $0.04 per diluted share, related to litigation with one of the former owners of the Company's Italian subsidiary.
The Company's effective tax rate was 29.9% for 2008, compared to 29.3% in the prior year. The 2008 effective tax rate was affected by a changing mix of income among jurisdictions, as well as the derecognition of several uncertain tax positions due to the expiration of applicable statutes of limitations for certain tax years. The effective tax rate for 2007 includes an out of period non-cash tax benefit adjustment of $1.0 million related to the deferred tax accounting for the Company's foreign pension plans and intangible assets regarding one of the Company's acquisitions.
Balance Sheet and Cash Flow Items
The Company's net debt-to-total-capital ratio remained strong at 32% at both December 31, 2008 and 2007, respectively. As discussed in the Form 8-K filed on February 20, 2009, the Company has also amended its credit facility to provide covenant relief related to the 2008 and 2009 restructuring programs and the CEO transition costs. In addition, the amendment temporarily increases the maximum permitted leverage ratio from 3.5 to 4.0 from June 30, 2009 to September 30, 2009, and to 3.75 from December 31, 2009 to March 31, 2010. In February 2009, the Company also amended two Industrial Revenue Bonds totaling $15.0 million to allow for the same changes in terms as the credit facility. On a pro-forma basis, the estimated consolidated leverage ratio as of December 31, 2008 is approximately 2.2.
Quaker Chemical Corporation 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. Our products, technical solutions, and chemical management services enhance our customers' processes, improve their quality, and lower their costs. Quaker's headquarters is located near Philadelphia in Conshohocken, Pennsylvania.
This release contains forward-looking statements that are subject to certain risks and uncertainties that could cause actual results to differ materially from those projected in such statements. A major risk is that the Company's demand is largely derived from the demand for its customers' products, which subjects the Company to downturns in a customer's business and unanticipated customer production shutdowns. Other major risks and uncertainties include, but are not limited to, significant increases in raw material costs, customer financial stability, worldwide economic and political conditions, foreign currency fluctuations, and future terrorist attacks such as those that occurred on September 11, 2001. Other factors could also adversely affect us. Therefore, we caution you not to place undue reliance on our forward-looking statements. This discussion is provided as permitted by the Private Securities Litigation Reform Act of 1995.
As previously announced, Quaker Chemical's investor conference call to discuss fourth quarter and full year results is scheduled for February 26, 2009 at 3:30 p.m. (ET). Access the conference by calling 877-269-7756 or visit Quaker's Web site at www.quakerchem.com for a live webcast.
Quaker Chemical Corporation
Condensed Consolidated Statement of Operations
(Dollars in thousands, except per share data and share amounts)
(Unaudited)
Three Months Ended Twelve Months Ended
December 31, December 31,
2008 2007 2008 2007
Net sales $116,229 $142,393 $581,641 $545,597
Cost of goods sold 88,114 98,783 418,580 377,661
Gross margin 28,115 43,610 163,061 167,936
% 24.2% 30.6% 28.0% 30.8%
Selling, general and
administrative expenses 26,762 35,499 136,697 139,429
Restructuring and related
charges 2,916 - 2,916 -
CEO transition costs - - 3,505 -
Environmental charges - - - 3,300
Operating (loss) income (1,563) 8,111 19,943 25,207
% -1.3% 5.7% 3.4% 4.6%
Other income, net (657) 960 1,095 2,578
Interest expense, net (1,204) (829) (4,409) (5,050)
(Loss) income before taxes (3,424) 8,242 16,629 22,735
Taxes on income (871) 3,592 4,977 6,668
(2,553) 4,650 11,652 16,067
Equity in net (loss)
income of associated
companies (102) 226 388 783
Minority interest in net
income of subsidiaries (67) (253) (908) (1,379)
Net (loss) income $(2,722) $4,623 $11,132 $15,471
% -2.3% 3.2% 1.9% 2.8%
Per share data:
Net (loss) income -
basic $(0.25) $0.46 $1.07 $1.55
Net (loss) income -
diluted $(0.25) $0.46 $1.05 $1.53
Shares Outstanding:
Basic 10,729,049 10,035,630 10,419,654 9,986,347
Diluted 10,729,049 10,154,388 10,553,325 10,106,918
Quaker Chemical Corporation
Condensed Consolidated Balance Sheet
(Dollars in thousands, except par value and share amounts)
(Unaudited)
December 31, December 31,
2008 2007
ASSETS
Current assets
Cash and cash equivalents $20,892 $20,195
Construction fund (restricted cash) 8,281 -
Accounts receivable, net 98,702 118,135
Inventories, net 57,419 60,738
Deferred income taxes 4,948 4,042
Prepaid expenses and other current assets 10,584 10,391
Total current assets 200,826 213,501
Property, plant and equipment, net 60,945 62,287
Goodwill 40,997 43,789
Other intangible assets, net 6,417 7,873
Investments in associated companies 7,987 7,323
Deferred income taxes 34,179 30,257
Other assets 34,088 34,019
Total assets $385,439 $399,049
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities
Short-term borrowings and current
portion of long-term debt $4,631 $4,288
Accounts payable 48,849 65,202
Dividends payable 2,492 2,178
Accrued compensation 7,741 17,287
Accrued pension and
postretirement benefits 7,380 1,726
Other current liabilities 12,771 15,670
Total current liabilities 83,864 106,351
Long-term debt 84,236 78,487
Deferred income taxes 7,156 7,583
Accrued pension and
postretirement benefits 37,638 30,699
Other non-current liabilities 42,670 41,023
Total liabilities 255,564 264,143
Minority interest in equity of
subsidiaries 3,952 4,513
Shareholders' equity
Common stock, $1 par value;
authorized 30,000,000
shares; issued 2008 -
10,833,325 shares 10,833 10,147
Capital in excess of par value 25,238 10,104
Retained earnings 117,089 115,767
Accumulated other comprehensive loss (27,237) (5,625)
Total shareholders' equity 125,923 130,393
Total liabilities and
shareholders' equity $385,439 $399,049
Quaker Chemical Corporation
Condensed Consolidated Statement of Cash Flows
For the twelve months ended December 31,
(Dollars in thousands)
(Unaudited)
2008 2007
Cash flows from operating activities
Net income $11,132 $15,471
Adjustments to reconcile net income
to net cash provided by operating activities:
Depreciation 10,879 11,686
Amortization 1,177 1,197
Equity in net income of associated
companies, net of dividends (275) (219)
Minority interest in earnings of
subsidiaries 908 1,379
Deferred income tax 1,014 (354)
Uncertain tax positions (non-
deferred portion) 211 1,577
Deferred compensation and other, net 819 (85)
Stock-based compensation 3,901 1,550
Restructuring and related charges 2,916 -
Environmental charges - 3,300
(Gain) loss on disposal of
property, plant and equipment (10) (40)
Insurance settlement realized (1,556) (1,854)
Pension and other postretirement benefits (3,527) (3,596)
Increase (decrease) in cash from
changes in current assets and
current liabilities, net of acquisitions:
Accounts receivable 15,582 (4,093)
Inventories (73) (5,182)
Prepaid expenses and other current assets (181) 122
Accounts payable and accrued liabilities (27,892) 7,612
Change in restructuring liabilities (749) -
Estimated taxes on income (885) (970)
Net cash provided by operating
activities 13,391 27,501
Cash flows from investing activities
Capital expenditures (11,742) (9,165)
Payments related to acquisitions (1,859) (2,373)
Proceeds from disposition of assets 177 259
Insurance settlement received and
interest earned 5,306 5,705
Change in restricted cash, net (12,031) (3,851)
Net cash used in investing activities (20,149) (9,425)
Cash flows from financing activities
Proceeds from short-term debt - 2,250
Net increase (decrease) in short-term
borrowings 743 (3,198)
Proceeds from long-term debt 10,000 -
Repayments of long-term debt (3,401) (8,345)
Dividends paid (9,503) (8,654)
Stock options exercised, other 11,919 3,309
Distributions to minority shareholders (404) (1,265)
Net cash provided by (used in)
financing activities 9,354 (15,903)
Effect of exchange rate changes on cash (1,899) 1,960
Net increase in cash and cash equivalents 697 4,133
Cash and cash equivalents at the
beginning of the period 20,195 16,062
Cash and cash equivalents at the
end of the period $20,892 $20,195
