CONSHOHOCKEN, Pa. - Quaker Houghton (NYSE: KWR), a global leader in industrial process fluids, announced today the immediate appointment of Nandita Bakhshi and Lucrèce Foufopoulos-De Ridder as new independent directors to its Board of Directors. This move comes as part of the company's strategy to enhance its board with diverse and extensive experience.
Chairman Michael F. Barry expressed confidence in the newly appointed directors, highlighting their extensive operational and strategic experience across various global businesses and industries. He anticipates they will contribute significantly to the company's board and overall strategy.
CEO and President Andy Tometich also welcomed the new members, noting their valuable perspectives will support the company's growth strategy and long-term shareholder value.
Nandita Bakhshi brings a wealth of experience in the financial sector, with current board roles at BMO Financial Corp., BMO Bank N.A., Beyond Meat (NASDAQ:BYND), and Grameen America, Inc. She has held significant positions, including President and CEO of Bank of the West and co-CEO of BNP Paribas (OTC:BNPQY) USA Inc., among others.
Lucrèce Foufopoulos-De Ridder has a 30-year background in the specialty chemicals and materials industry. Her recent role as Executive Vice President at Borealis Group and previous senior leadership positions at Eastman Chemical (NYSE:EMN) and other companies underline her extensive expertise.
Quaker Houghton operates in over 25 countries, serving a wide range of industries with its process fluids and boasts a workforce of approximately 4,400 employees. The company is headquartered in Conshohocken, Pennsylvania.
In other recent news, Quaker Chemical (NYSE:KWR) Corporation has been the subject of several important developments. Quaker Houghton reported a 6% decrease in net sales for the first quarter of 2024, totaling $470 million. However, the company saw a significant increase in gross margins, rising to 38.7%, and a 6% year-over-year increase in adjusted EBITDA to $83 million. In terms of executive changes, Quaker Houghton announced the appointment of Tom Coler as its new Executive Vice President and Chief Financial Officer, effective from June 10, 2024.
Meanwhile, Jefferies adjusted Quaker Chemical's price target to $185.00, down from the prior $209.00, while retaining a Hold rating on the stock. This adjustment follows observations of Quaker Houghton's gross margins surpassing the company's long-term goals. On the other hand, Piper Sandler initiated coverage on Quaker Chemical with an Overweight rating, suggesting potential growth opportunities for the company. Piper Sandler anticipates Quaker Chemical's EBITDA could reach $400 million by 2025, exceeding the current estimate of $373 million. These are the recent developments that investors should keep an eye on.
InvestingPro Insights
As Quaker Houghton (NYSE: KWR) welcomes new board members to steer its growth, investors may be interested in the company's current financial health and market performance. According to InvestingPro data, Quaker Houghton has a market capitalization of $3.28 billion, underscoring its significant presence in the industrial process fluids sector. The company's Price to Earnings (P/E) ratio stands at 28.01, with an adjusted P/E ratio for the last twelve months as of Q1 2024 at 26.15, which could indicate the market's expectation of future earnings growth relative to the current profit level.
InvestingPro Tips highlight that Quaker Houghton exhibits a high shareholder yield and has a history of consistent dividend growth, having raised its dividend for 16 consecutive years. This track record is further bolstered by the company maintaining dividend payments for 52 consecutive years. Such financial discipline and shareholder-friendly policies could be attractive to investors seeking stable returns, especially in the context of the company's strategy to enhance long-term shareholder value as mentioned by CEO Andy Tometich.
On the valuation front, Quaker Houghton's strong free cash flow yield is implied, which is an encouraging sign for investors looking for companies with the financial flexibility to support growth initiatives, pay dividends, or repurchase shares. Moreover, the stock's low price volatility suggests it might be a suitable choice for investors with a lower risk tolerance.
For those interested in further insights, InvestingPro offers additional tips on Quaker Houghton, providing deeper analysis and metrics that could be crucial for making informed investment decisions. As of now, there are 8 more InvestingPro Tips available for Quaker Houghton at https://www.investing.com/pro/KWR, offering a comprehensive view of the company's financial position and market performance.
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