Quaker Chemical Corporation – Best Chemical Company Stocks
If you believe in the recent trend of industrial activity going up, then it may be a good idea to look at the chemical and specialty chemical sector. A pick-up in the global economy is poised to benefit core manufacturing businesses. One of the leading companies in the fluid process segment is Quaker Chemical Corporation. The company is more than 100 years old and was founded in Pennsylvania. It does business in America and several other geographies of the world. A couple of years ago, Quaker Chemical combined with Houghton International to form Quaker Houghton. This led to a doubling in the size of the combined entity. There were also other benefits like cost synergies that played out after the merger. The deal was a combination of cash and stock. Regardless of the structure, any investor who is on the lookout for the best chemical sector stocks today will find it worthwhile to study Quaker Houghton more closely.
The Business Of Quaker Houghton
Quaker Houghton serves the metals, mining, aerospace, automotive, and manufacturing sectors. It has a broad range of specialty chemical products that it sells to customers in Asia, Europe, Latin America, the Middle East, Africa, and North America. The company has operations in 25 countries, and its major products are cleaning fluids, metal removal fluids, metal forming and drawing fluids, corrosion inhibitors, quenchants, and heat treatment fluids, rolling lubricants, surface treatment chemicals, wire drawing fluids, die-cast mold release fluids, etc. Quaker Houghton conducts most of its sales via its own employees. It balances its in-house efforts with some distributors and agents worldwide. Quaker Houghton’s customer base is not highly concentrated either. The top 5 customers account for only 10% of total sales. If you want to invest in the best chemical company stocks, then it may be a good idea to study Quaker Houghton more closely.
Quaker Houghton uses a staggering amount of raw materials. In its annual report, it lists some of the 3,000 types of raw materials that it uses. These include vegetable oil, mineral oils, ethylene, animal fats, surfactant agents, and solvents. Inflation and the price of crude oil affect the cost of raw materials.