Quaker Chemical (KWR) 3 May 242024 Q1 Earnings call transcript

Greetings. Welcome to the Quaker Houghton First Quarter 2024 Earnings Conference Call. [Operator Instructions] As a reminder, this conference is being recorded. I'd now like to turn the call over to Jeffrey Schnell, Vice President of Investor Relations. Mr. Schnell, you may now begin.

you. Thank welcome quarter and call. earnings our to morning, XXXX first conference Good

and and the Tometich, Hostetter, Officer; President Andy today our Financial President Vice On are Executive our call General Traub, Robert our and Chief Executive Chief Counsel. Officer; Shane

to relate released information markets financial of after XXXX. May X, the close U.S. comments Our the yesterday,

to measures, the Our financial these Investor discussion non-GAAP Both reflecting the measures commentary statements. This These and contains the differ. current Relations certain during risks, forward-looking the non-GAAP cause of and and call directly company's also website. and comparable the forward-looking company effect GAAP slides measures on contain which available results no Houghton's to uncertainties obligation operating be updates The presentation financial can has under future the our most actual their accompanying release financial and of website. these press presentation found financial are in our may is the provided events company performance. to on view materials, potential involve reconciliations which may of to Quaker subsequent prepared appendix statements statements provide and on

please information, our additional the to SEC. For with filings refer

pleasure hand my call Andy. over to it's Now to the

dynamic navigate operating results, and strategy, Thank and solid enterprise of of in further our as people to we persistent a morning, end quarter business execution market cash expanded highlight the resilience the flow. the earnings proud you, Jeff, margins, as as I'm delivered of these We successfully well ongoing which everyone. our conditions. again another our and our continue our delivered strong first XXXX. performance good Quaker Houghton advanced quarter and of grew

for position business to is to years in approach come. environment the any managing better disciplined Our perform to well company to working our

conditions. basis, on X% us a were our This result of First with is a endure X% we and stable of appropriate sales XXX higher the margin once first the customers improvement sequentially. prior reported XXXX. year-over-year points efficiencies in through initiatives, the higher macroeconomic customer Total basis the were volumes and performance. differentiated model quarter the soft overall customers to driving and prior procurement, period. year's from $XXX areas result quarter active business Gross were points as XXX enhance operational XX.X%, new than again year than through We've were quarter our sustained, higher and in below compared valued net chain our the our taking on the like steps including execution record earning intimate million, X% as well prior benefited higher margins our supply to and fourth as basis

despite of success first modest by in results driven pillars growth a And since operating We total approach our raw maintain also These We continuing in progress generated people, with customer-driven increase which build. generated capital diluted improved increase modest the a benefited with primarily enablers. In decline $XX our our quarter, to underscore prior commitment our customers, X% approximately the from momentum and we our a the XXXX. from was profitable year-over-year, first year. and million we and performance material levels, model. This our continuing to our our stabilized. XX% adjusted have an peak cash invest compared driving non-GAAP of cost ownership their EBITDA of $XX a of our working per flow, quarter, for share, million financial earnings strong in $X.XX operating on in to the initiatives costs growth while disciplined and

capital the levels our Houghton's disciplined supported allocation cash strong, generation and these flow by cash of coming on capabilities Quaker in build our is quarters. balance strategy. to expect We sheet

EBITDA the optionality framework adjusted ahead excited our support Our about to to long-term I'm net to potential. our in for opportunities invest provides creation. our significant at accelerate opportunities our leverage value and remained X.Xx continue and growth ratio unlock growth to

Turning materialize in a in of the primarily This improvement Greater both basis. earnings mid-teens I'm margin also improved Asia China percentage results, metals our is conditions XXXX. We've began compared back again performance to and a and to of in in the continued driving that into XXXX in Volumes year-over-year especially increased by all the half on Asia. been of by our and our the mixed delivered to segments an proud growth execution prior segment in encountered. result once the metalworking team's considering has we've year. Pacific end segments. market We these encouraged of the

metalworking was wins our quarter, in which but we more first and packaging declined metalworking, in offset declined compared our improved activity the has business end continue to containers. basis segment compared both has business drove the of by on Americas in the to EMEA price/cost continuation of metals profitability the below but in and improvement well underlying the sequential Volumes to segment points especially than complemented key market Pacific least our EMEA demand Demand driver and the management the of the and with the improvements levels, in Volumes metals prior the half segment a the been applications Asia activity the in normalized a region. the whereas industrial likely activity were in restrained, the prior more across region industrial will sequentially. both Volumes XXXX. That reflects segment, segment, new in increase a volatile year. are consistent the basis improve year, XXX of we year-over-year constrained This New prior through region improve, to partially continued at in in EMEA in the segment quarter. on in execution market first in wins. remained expect said, by margins end and remain to

driven provide the in margins. conditions, the sequential to solutions. Segment earnings Americas customers by quarter and year-over-year on in basis, underlying the in our a both improvement segment services a positive with our we were despite this further the segment's in wins soft Americas and increased market value the business New a reflecting

Our volume in regions our continues better operate. respective we markets than growth or be line the in to underlying

We the further rates our in across expect these from build levels. Switching we segments, the value embedded at foundation on to seasonal with to of regional progress our degrees. all we'll modest Beginning expect but improve market that as demonstrate improvement XXXX demand in believe as our second we model the a and quarter, through and low outlook. varying

and market. remain metals we while to We by And expect growth it more in mixed in end tepid positive expect metalworking, continue. the will momentum likely

in cost seasonal our rates new similar complemented that with total continue all in business growth market value improvements expected these first to expect underlying are across the We of be quarter to relationships to our we pricing be wins will margins range and balance to as customer by a regions. Gross serve. our our

deliver in Taken expect quarter the quarter together, full year. the and XXXX. Switching second we year-over-year of in of to adjusted to another EBITDA sequential growth

market Our persist the the end and our uncertain, earnings limited fourth first expectations unchanged will least from remain expect current XXXX for XXXX. half dynamic through visibility quarter market we remains call. of conditions and at environment The

that through underlying optimistic the will we conditions year. However, we're improve cautiously as progress

underlying actions of the control, focused advancing and markets, of contemporize our core the model continue growth These to as we organization. beyond. end, on positioning customer Quaker our objectives, portfolio our team strategy, profitable all to enablers driving investing our in XXXX of another We've take effectively to for our hyper leading growth this, pillars the our our foundational the customer executing factors strength enterprise volume including to ability and the we're Houghton's are the will features as outpace support business. relationships be within company on XXXX. growth. To of of in intimate to further manage diversified earnings resilience that in to while year growth Our our and our and of expectation delivering enablers continues Through continue part

our cash advancing supporting priorities M&A our our capital another the our XXXX, enterprise committed remains through our Quaker opportunistic for enhancing are commitment The on our is traction, sheet strengthening both bolt-on on centered in share underway to organic Houghton of value investing consistent customers. enhancing our also which strategy, growth, initiatives fully repayment repurchases, generation, momentum We being year anticipate and of strategy, dividends, paying debt disciplined gaining building with allocation internally of balance strong with externally. to growth shareholder value. and

prudent first quarter our continue gains us growth-related to our with deliver investments, We Asia growth going the will in be Pacific. benefit in initiatives forward. A volume was that for supporting

in benefited China and in on expanding from deploying, of levels our XXXX, portfolio in benefits the technology capabilities full growth Greater While low region. we reinforcing of capitalizing improved that Asia, the also in

work effectively solutions capabilities focused and our the This also together complexity. between simplifying on functions are global to teams organization to includes the customer-valued deliver to reduce strengthening cross-functional efficiently. Our

for our and we new the wins. We're our continue through while For towards milestones the XXXX our that and product with and intimacy by including of optimize example, will company accelerate our also schedule digital leverage the iteration enable our industry our generating customer achieved for published our rationalization, We're advanced now our of XXXX the customers I.K.V., our necessary accelerate another our capabilities of in drives which which globally. Sustainability a to which additional we've continue model, also strategies growth and to of direct I'm with making as performing progress on the with enabler milestones, scale has to proud made, further expanding strategy. value deliver our have contributions of also line to interim into and indirect our of growth specific We're acquisition is help investments of channel prioritize initial needs from our us new our expectations details strategy. customers. intimate which pleased solutions and in and the we Europe model launched all differentiated We XXXX in recently of tailor been to the the Report, our business our will latest Sustainability also Europe, leading business advance better operating enterprise goals. our foundational future. global and ahead to progress to note refined efficiency channel

Additionally, we're more we positioned to uniquely believe that customers presents a challenges future our sustainable pursue. help

leadership For areas The with instance, opportunities develop tremendous and in new the e-mobility. our Houghton is customers. to shift pillar diligently for drive our working in space this on challenges, with we're value-adding and to these Quaker and solutions growth capitalizing have for

year-over-year best specific unlock by our seventh do of stable that prudently All time. Houghton and market, our deliver our growing customers customers strong very is aimed by and responsive They're continue over the drivers, potential. We'll needs attractive of tailored the of initiatives with back, to extensions, providing We're to meaningful has delivered partnership we've furthering made business quarter, earning natural dynamic to the progress priorities have in and to secular towards innovative momentum new more on strategy consecutive productive, our gross our positive financial our delivered a driving value and long-term built our goals. fifth services upon solutions which our needs. we to leading dedicated capitalizing continue long-term our We of enhance invest further underway at building quarter expansion. their operational our on the the remain Quaker our position we committed growth the shareholders. Stepping company margin in highlighting our industry, this developed and by are volumes initiatives. first generation, to foundation enterprise ultimately the advance for industry In growth a and supported of to this quarter to our organization, and

XXXX intimate We partner customers, Quaker for enabling ensure us our enhance of choice beyond. above-market model to will in and and to our growth achieve position the cost customer is Houghton

the the I over to strong, thank sheet our shareholder allocation for supported Shane living to our and behalf is core the capabilities discuss want their of values. With around colleagues the capital pass On for strategy, dedication by which focused team, company cash globe customers financials. to X,XXX to that, to it our of our and value. like on and balance our Our balanced organization, I'd remains the generation supports maximizing management

good morning, in performed Houghton well and Andy, first quarter. the again you, everyone. Thank once Quaker

price Our net X%. index-based which and from the the and The sales lower declined approximately approximately impact of prior year-over-year of sales of year approximately of lower mix reflects selling to product the X%, volumes change contracts primarily million. our primary drivers X% $XXX were

in an by which the driven volumes, consistent for sales as This softer our in net EMEA improvement sequentially remained segments. business decline was which product offset partially a sales reflecting Asia the were as X% wins, in first offset by primarily in to XX.X% of industrial points reflected in increased XX.X% X%, seasonal Gross the prior of represents basis our increase XXX fifth benefit was compared an all quarter points demand, increase segments. Sequentially, by and fourth a to quarter, a across improvement the segment consecutive approximately Pacific which and partially sequentially well quarter. an an Our margins new compared X%. approximately in were improvement XXX approximately impacts of year mix. in of volumes were and net activity, have largely price Americas basis These in selling which XX.X%, the

raw the for execution, of actions, material back solutions, margins Our coupled modest restoring have targeted capturing cost our and the gross range. efficiency been reduction primary within value services and with our some drivers our

prior adjusted $XX to or of of prior or the million X% or quarter. and year on represents our costs. of X% quarter, prior year X% $X first SG&A to The increased the $X increase labor We quarter impacts $X compared compared inflationary and EBITDA items, reflects or and increase an in X% year an compared the to to which the delivered Excluding prior increase sequentially. million $X compared million prior the onetime million related and million

product of the the Our region, operational in mix. primarily quarter, X% the progress to Net the XX.X% while prior business. advancing both was reflect selling increase segments. our near-term improvements made quarter an Americas industrial to These also initiatives, and quarter. the we've compared and first financial in and lower sales XX.X% impacting activity the metalworking Americas priorities. Switching adjusted our of in due EBITDA our in price primarily and volumes reflect the our growth XX.X% Volumes balancing profitable sales declined in year-over-year primarily lower to first margin XXXX

primarily margin this in Similarly, margins they've million increase Asia largely in XX% Overall in in and X% EMEA prior through volume volumes prior Greater Our which a driven business sales both believe and On stabilized. in the sales the market both EMEA earnings reflects value initiatives, approximately which and reflecting interest softer sales to year. from price across overall sales patterns and progress relationships Pacific year our selling approximately serve. Overall, improvement new selling point in XXX made product with XXXX. to impact and reduction Asia conditions did the increased the in driven prior Americas Asia in segments, to in Asia as sequential market price million challenged prior the seasonal prior conditions. reflecting Segment in normal on margin was our of as X% the led increased most our product initiatives, metalworking. Americas compared This volume to margins conditions The to trends the dynamics. Net continue compared compared uneven as fourth improvement. been increased, was Segment first compared segment increased XXXX, we'll a higher margin. to the improvement prior benefit index-based quarter an gross compared basis volume XXXX, quarter also the an wins both prior very we've sequential and were price year, improvement in an financial lower to compared expense It selling China reflects while to segment first underlying quarter the segment improvement and to increase reflects profile quarter. Net the savings reflecting Below largely by the remain decline basis, earnings economic metals to resilient, contracts. in to offset $X and which well improvement provide price and all in in new net the increase our categories. positioned debt segment by also across we're compared X% well in volumes business due cost approximately mix. quarter improvement sales year-over-year. basis. Margins the and needs. cost and year, cost earnings our increased an considerable cost balance a to lower to this a EMEA a improving by EMEA Pacific our points as a we on year. compared well have basis, were we year, in which of And increase earnings earnings customer significant XXX year-over-year of product line, compared increase underlying improvement drove Pacific our the and X% sales the in basis increased in most approximately and of partially in an variable double-digit mix. volumes, our $X volume reflects lower to demand lower broad reflects increased

the debt in quarter. first which quarter is of line we X.X%, in cost was exited Our approximately prior where with the

approximately tax rate, items, nonrecurring effective Our noncore excluding XX% and the first quarter. in was

We to continue expect XX%. our be approximately tax in rate XXXX to effective

first were $X.XX, per $X.XX. GAAP increase and an in improvement costs. Switching to Our were and our historically year-over-year earnings per generated strong earnings XX% diluted in which per generation. cash been liquidity. from share million lowest lower cash quarter represents an in share, We our non-GAAP share which $XX operating for diluted earnings of quarter, result driven earnings was has This by operations the interest

and in efficiency approximately the $X year expect we approximately expenditures continue strong to quarter to our of another through progress were Capital as operating in We dividends XXXX we paid quarter. in improve $X million and the flow. million, working expect capital cash first also

to sales our between XXXX. and be X.X% expenditures capital continue will expect in We of X.X%

strong. remain liquidity Our balance and sheet

was and adjusted leverage X.Xx at ratio at our EBITDA. first end debt million, $XXX our quarter net of remains the net Our the

to strategy creation. allocation enable capital with execute capabilities position Quaker on at solid to disciplined another and our financial aimed XXXX for continue cash us Houghton. We've started Our flow generation value quarter

initiatives. despite continue We enablers end demonstrate expected profitable creation. With our over growth it significant challenging enterprise of part are long-term capital targets, market deliver remain accelerate environment. earnings combined the as which back well We us to strategy, to I'll support Andy. focused persistent of the turn while that, organization our in and positions This, power to our investing delivering value our growth and with to our the strategy, disciplined on allocation

you, Shane. Thank

for be I'm team we'll Quaker Our ahead that, to and well, opportunities the questions. address excited Houghton. With has executed by your glad

first with Seaport line from Instructions] Partners. this Harrison Research the of [Operator question morning Mike is Our

the a on Congrats nice start to year.

Mike. Thanks.

I to kind we that could was other to level. taken may margin XXs of view maybe volumes have by what's of ago, us have get operating years actions over already in along of bouncing a time, more little off if you level? actions XXs what you low color positioned to margin gotten on of bottom hoping margin be are maybe on in improve enabled come? from the start And of could getting improvement, kind operating there low and a I going that level? kind that where that Obviously, just nice yet bit where kind to this very back to place guess a and type What understand EMEA? are we've go you've Maybe that few were operating help

macro beyond on combination level But range And Mike. Thanks, basis adding highlight, we're it's yet, year-over-year well a going to within question. always and for But price/costs come to went cost segment a EMEA on continue we're when a the going there that managing that first we're the general perspective. situation as them, we've XXX really persists, appreciate on it's some but as margin continuing 'XX our value spread basis, and to underlying from new regions some points. on business region. It's of up not the journey. to to markets segment that. towards and focused has The serve Yes. of the asking are on success some our customers of the the reached our self-help from on there. highest quarter not winning as some the as region a even margin stay we're you the the with cost linear, well be challenges. really recovery to as And right We're self-help there basis. moving you still And we're that, our going does that now on I working leverage since us benefits deal positioning efficiencies the a in

a a both bit All just you're strategy? maybe right. those I how you Are And best to for not from Great. guess, China talk Asia? competitive areas in And demand you few business Asia? guys bit could positioned China about, Asia. but was China about a talk like seeing then you're maybe opportunities a good you you're curious any maybe I feel commented you performance, in enterprise there in if if and and differences times Greater new Greater little little the trends, seeing just Greater between benefit within from a standpoint gain your are what growth in that and

still Yes. new the across Thanks, digit really there of we regions. good situation, business business outperformed was year I'd a in In a particular, grew And Mike. we new opportunities COVID China, double ago, Asia, But with see that our that basis. on highlight realizing wins. wins for percentages. year-over-year in all We

really opportunities So value did strong performance with especially to we've job. sequential Asia, that wins in see for business new and and serve again, customers. in think, even our quarter-over-quarter the existing And those even are well, find well the lot to improvement China while that's things and Southeast continue as ability market continue. But combination that in an broader to India as there, then, opportunities of year-over-year our improved Asia, through in a a I opportunities new we're And on better basis. both in of expect doing we and China, XXXX, to continued a we

last then question All right. me outlook. And is the for just on

volume modeling kind gross you was if that volume the year? can as quarter-on-quarter. margin, level the want about to in I bake growth it that see kind give maybe from see the you of we margin, EBITDA be you like do at quarter? you XX.X% that and of And you us mentioned least curious might how not to on expect some growth, first expect assumptions stable You margin, on much delivered but expect some to the just into remainder sounds gross think of to improvement we

Yes. Thanks, Mike.

So we with started. the to about where when think we want outlook, I start

stable in little go prices predict. So and relatively far quarter. we're quarter, pressure for combination cash momentum the flows. customers. in in material we're volume prices bit hard XXXX move providing assumption we our as to the going a our quarter, drive grew our we be we maybe with now of a value we to and of really first positive quarter. range the that's volume we're raw We bit margins. are our the as we viewing even some new in the get growth and for expanded a forward. Gross that little increased second now little to We us we second generated continue second similar just and stay all the And had going further margins communicated, across we in benefit quarter. a on and we the are in expected in Americas range that's additional wins earnings our but business against forward sequentially. not APAC stabilizing, of to know going as regions, second move the of into into the And Underlying We're we anticipate with seasonality We expect that we'll to on markets similar, of kind some as as our those potentially focused maybe go

year-over-year by some we're new of -- on I the with full basis, driven win EBITDA it's for a business. And we'll the volume growth environment. pretty dynamic or basis, excuse both expecting a the macro on me, net still highlighted that that a quarter, remarks, year in as sequential So prepared on second and year-over-year then

volumes underlying new begin is little focused improve, especially in second business We're optimistic to to the that's challenging. we And hyper range, we the the in kind think margins, strong. XXXX XXXX. talked improvements that going move So range And key us basis equal, we're on a expect that expansion half in We're some else the be compared wins to year-over-year to XXXX. Gross visibility driving which our as bit to really lead our would that be all target of about will a we as very about of to our everything multiple through started times, doing. cautiously we markets we've on year. always communicated

continuing. we're record and build So volumes, that the generation anticipate for delivered grow going good opportunity earnings Quaker on our a to solid have too. year we think grow Houghton, want miss XXXX. And results the don't to we to cash I highlight in We last,

So maximize continuing we shareholders. allocation our really that opportunities and returns can for our use in capital disciplined strategy, where we're to prioritize growth

normal as single Mike, to qualification usually more Yes. range it. I And little add at a QX, in just digits, too, to to low seasonality bit QX the is look to of of a just put

with is from the next question Begleiter Our Deutsche David line of Bank.

above now on can you're long-term in first actually strong Very congrats But your quarter, go from here? target, where gross you the so margins that that.

-- portfolio. entire in we across just growth the as on did improving been Yes, quarter, David. first the a Thanks, job really team Yes. focused area not here, great our number profitable we're but a as of in this quarters we've

into materials, where actually and convert As in just do indicated, undershoot And moments linear, there be we raw the on changes won't be is could or XX% cycle. and XX% have contracts timing gross that our and it through that timing. to target I We overshoot, previously based always the margin consistently range we there to index be some when pricing.

of we're we going So in in quarter. to the had QX, first we what be range the think in

work we'll We operate we year. of and growth And in stability to our full price/cost the help with generate along range as us for be swings. expect more earnings with managing fewer to, to going that's balance, believe consistently price growth, we that target volume some our

QX? in entire volumes QX, in And the for do just expect company positive be you to

mean, expect more think move Asia. in quite more we I there, volatile. I and dynamic. forward, some seasonality as a in the still We'd is in normally Yes. Americas it's we particular, and Europe little seasonality little expect a

more perspective. to So from well. difficult second new bit those a to bump predict on there. as little business But it's wins a the we're of continue to stay And course, focused a going we'd a in anticipate little volume of quarter

Next question line the is CJS Tanwanteng Jon Securities. of with from

Justin at on give you us Can FX headwind for update current an of on kind is from This Jon. rates, versus expect XXXX? any, you what if

Justin. Thanks, Yes.

headwinds, perspective. expect sit don't much a from here, we not I As majority

give X% that on or take So side.

That's helpful. on how prepared I you us repurchases? M&A and the pipeline second, you versus but an for debt update priorities, give it then can. the paying a know can balance down on I And if remarks, you share in capital allocation on touched

Yes, sure.

around shareholder allocation capital disciplined been. as has there. strategy So We're it remains very generating value

CapEx some So on continue side, of payer. standpoint. unlock our growth, being both for we'll a M&A to that's organic inorganic support and very money strong innovation we on an know we've from lever to of And the value. course, portfolio we're dividend efficiencies, and healthy spending a a But shareholder

us strong able move going on sheet balance got to we're that. be to that. to to a forward continue We've support on So

to absence or just just though, when the build. As we've of come timing going not cash opportunities along, we're in let highlighted,

to down we've we'll results the we're -- So if buybacks paid to a value share maximizing shareholder and typically we've tool were debt now growing follow business make on in highest their returns. opportunistically -- And XXXX. available continued continue sure the the strategy to to we that making sense -- in

line next of is Alexander Jefferies. with from The question Laurence the

for Laurence. It's Dan on Rizzo

in done outperform markets? the have by the Given different in do is cost one the a you -- does or incremental improved margins how of different difference guys the there and Or you've regions productivity, kind cutting other? end

across there's all and little But for general, mean, focus adding I kind markets target Yes. We regions of customers, bit always markets across and a level. we value variation. the in on end levels of our end appropriate in and a geographies. similar we're are of

the efficiencies for a we're balance we continue As price/cost the to we've we've going Europe, how similar profiles some improve to work speaking, continue on. And in we'll things. manage got I across ago, commented look to always generally in few portfolio. But opportunities can to which minutes

ramps up, think volume incremental guys, as you basis? margins a you for have And are ever mean just growth you broad of how -- kind what I potentially quantified on

perspective of I'd you, cost, as not of majority quantified up, not be volumes will but It's Yes. heavy ramp of of side. the it's from just that. component Dan, our that cost right? a quantified materials a remind than raw we've we've a benefit manufacturing that. There more sold, not goods

wondering there so mentioned like I is mean, was two? to just if that all? Okay. it's other hybrid tailwind. and question, you doing that meaning if -- a was electric And as EV then a EV now it's the Because Or I wondering But hybrid? is difference if my guys or at sales, between outpacing I EV are sales from you matters vehicles

a it's Yes, great question.

for and better electric value we're ICE the help you have not the the complexities, more with there's opportunities us dealing with in with And to but the also be pretty where only standard pretty this pretty designs, nascent evolving some investing think when of Just And new processes, new customers it's space. Then it's their by them solving customers right help with quickly the can challenges. significantly. adding them at side, position whether engine, hybrid, but of a that's we we as and about pure EV, that's with lot materials, new already in because complexities. moment,

them challenges their the into powertrain partnered put of we're intimate continue vehicles. to that going them, meet So planning to with help regardless they're to customer stay and their

the line RBC. last question Arun from Viswanathan with of comes Our

that, Yes. on Sorry mute. was I about

obviously, bit kind environment? but kind seems the metal volume and Maybe you well. and the looks those what specifically you've in maybe flattish. of consistent can things go Maybe some build your stable, a are a kind of as aluminum of rate at of you're slowing, it kind end looking little end just markets, of trend, through stayed like some of seeing here bit of especially like automotive. kind maybe little metal it given working, of And So markets,

Yes, sure.

to I'd general soft, when really through a markets, levels, then And when in as we're room levels. And move especially XXXX. to across. But seen metalworking, and we beyond yes, about on a continue in even of like primary improvement, go, the our which you opportunities of especially get back going bag. think are earlier in Still lot find what's mixed markets, you compare some to metals, with previous So though, highlight, and we a we've to end more has little to XXXX bit clearly new continuing markets do to customers, that. back the the to

some So in there. it, fast continued like some improvements industrial to we'd but opportunities believe in and we've are some there's the the the not see that whereas and container, industrial packaging we we've aerospace. seen it's And -- in demand been still as -- applications of challenges automotive as

will that optimistic call move control positive leaves half that focused about and as we're doing. can a the start markets bit balance but we end we're what but going we And for back So of those to them signs, new yet. those the I forward. regardless seen what we're optimistic some We've wouldn't to us wins cautiously little control, out are markets business underlying on do very on what us, can trends

or may Great. maybe just be can the I you And M&A in environment. that give maybe just of as on know some focus, an a follow-up, color technology geography. then area us

So the of you seeing some how are about opportunities that thinking you're there?

great moving We then strategy for add when model we shareholder value. And of intimate Yes. them. our sure. build just deals, types allocation shareholders. last we're in deals each and key range is customer with we of of we X M&A is And Yes, our of model. we And last is a more of bit continue take which customer of a balance the We've opportunities a geographies improved cash. know of there for acquisition gave and lot for of or channel, play our on little sizes got quarter We generate mean, value just intimate for to of And of focused an they're -- we again, this X always checked a geographic technology. mentioned typically, to those or a about I.K.V., angles really look advantage take to of our advantage as talked X component how a update. channel we all growth, on forward. add and sheet, executed got I.K.V. quarter, I we that our our all us. We've of boxes pipeline market, the part And I capital X There's a that. key

And shareholder continue we'll believe that to by keep utilizing the We'll available. those to evaluate we add inorganic part continue forward. options value as capital moving we'll growth our are So allocation. of

remarks. At session. floor this turn the time, Andy I'll Tometich for end reached closing we've the question-and-answer of our back to

appreciate the Yes. you've have Thanks questions. continued additional you Houghton, and really please and Thanks, day. much. if Jeff very a to reach to Quaker any ask in interest great We follow-up out

This will conclude today's conference.

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