Low-cost Financing Helps Quaker Expand

Article Excerpt

QUAKER CHEMICAL CORP. $26 (New York symbol KWR; Income Portfolio, Manufacturing & Consumer sector; Shares outstanding: 10.3 million; Market cap: $267.8 million; WSSF Rating: Average) is taking advantage of low-cost government financing to triple production capacity at its plant in Middletown, Ohio. The plant makes lubricants that protect machinery from corrosion. Quaker will also transfer some of its other operations to this bigger facility. This project will cost Quaker $19.8 million. However, it will receive about $13.5 million in low-interest loans. Quaker earned just $5.1 million or $0.50 a share in the first quarter of 2008. But the company feels that cost savings from this move will add $3 million to its annual cash flow. Quaker aims to complete the expansion by the end of 2009. Quaker Chemical is a buy. buy…