Quaker Chemical Corporation (NYSE:KWR), a leader in the production of petroleum and coal products with a market capitalization of $2.82 billion, announced the departure of Melissa Leneis, who served as Senior Vice President and Chief Human Resources Officer. The company, which InvestingPro data shows maintains a strong financial health score, confirmed on Monday that Leneis' exit was an involuntary termination without cause, and emphasized that there were no disagreements leading to her departure.
Leneis' separation from Quaker Chemical is governed by her employment agreement dated May 24, 2022, which outlines the severance payments and benefits she is entitled to receive. These terms were detailed in the company's Proxy Statement filed earlier this year on March 28, 2024. As per the agreement, Leneis will be provided with severance as long as she executes a customary release of claims. The company's strong liquidity position, with a current ratio of 2.54, suggests ample resources to manage such obligations.
In other recent news, Quaker Houghton announced the appointment of Joseph Berquist as its new Chief Executive Officer and President, succeeding Andy Tometich. Berquist has been with the company since 1997 and has held various leadership roles, including his most recent position as Executive Vice President and Chief Commercial Officer. His tenure includes the successful integration of the 2019 Quaker Houghton merger, which significantly expanded the company's size and produced over $80 million in synergies.
In financial news, Quaker Houghton reported a 6% decrease in net sales year-over-year, totaling $462 million, while maintaining stable gross margins at 37.3%. Despite a year-over-year decline, adjusted EBITDA stood at $79 million. The company also achieved over $20 million in annual cost savings from its Cost and Optimization Program, maintaining a strong cash position with over $200 million in cash.
Piper Sandler has adjusted its price target for Quaker Houghton, raising it to $200 from the previous $190, while keeping an Overweight rating on the stock. The firm cited a slight decrease in the EBITDA forecast for the fourth quarter and the year 2025, attributing this to expected seasonal trends and a more gradual economic recovery in Asia and the European Union.
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