QUAKER CHEMICAL CORP. $85

QUAKER CHEMICAL CORP. $85 (New York symbol KWR; Income Portfolio, Manufacturing & Industry sector; Shares outstanding: 13.2 million; Market cap: $1.1 billion; Price-to-sales ratio: 1.5; Dividend yield: 1.5%; TSINetwork Rating: Average; www.quakerchem.com) make lubricants that keep mechanical parts from rusting. Sales in 2015 fell 3.7%, to $737.6 million from $765.9 million in 2014. That’s mainly due to unfavourable exchange rates and lower demand from steel producers. However, a cost-cutting plan lifted its earnings per share by 4.0%, to $4.43 from $4.26. Quaker needs oil to make its products, so lower crude prices are cutting its costs. Its earnings should improve to $4.58 a share in 2016. The stock trades at a reasonable 18.6 times that forecast. Quaker Chemical is a buy.

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