Greetings, and welcome to the Quaker Chemical Corporation Fourth Quarter and Full-Year 2013 Results Conference Call. At this time, all participants are in a listen-only mode. A question-and-answer session will follow the formal presentation. (Operator Instructions) As a reminder, this conference is being recorded. I’d now like to turn the conference over to your host, Michael Barry, Chairman, CEO and President of Quaker Chemical. Thank you. Sir, you may begin.

Thank you, Melissa. Good morning, everyone. Joining me today are Margo Loebl, our CFO; and Robert Traub, our General Counsel. After my comments, Margo will provide the details around the financials, and then we'll address any questions that you may have. We also have slides for the conference call. You can find them in the Investor Relations part of our website at www.quakerchem.com. I will start it off now with some remarks about the fourth quarter. Overall, I am pleased to be able to report that we had a good quarter, and we did so in a challenging environment. We had double-digit growth in earnings and EBITDA, and we generated strong cash flow. Let me now try to give you a sense of what we experienced in the quarter, and I will start with sales. Our overall sales were up approximately 7% for the quarter versus 2012. Our volumes showed similar growth with all four regions contributing. Going around the globe, Europe is one of our most challenging regions relative to the industrial market conditions. However, sales actually were up approximately 9%. We saw both market demand turning positive in Europe and we continue to pick up share in the marketplace. In South America, our sales were down 6%, but when adjusted for foreign exchange rates, our sales actually increased approximately 5%. In North America, we saw an increase in sales of 4% and in Asia-Pacific we saw 13% increase in sales, as we continue to have good growth from our business in China. Overall, we continue to do well, gaining share on the marketplace. We believe this is due to our commitment to our customer intimacy model, which puts the customers’ needs as our top priority and provides our customers with strong service and business solutions. We believe this…

Thank you, Mike. Good morning, everyone. Turning to the financial portion of the call today, Quaker had a strong fourth quarter despite typical fourth quarter seasonal trend. I'm also pleased to provide more details regarding Quaker’s record performance in 2013, marking the fourth consecutive year of increasing revenue and earnings. Specifically we announced yesterday net sales of $184.3 million for the fourth quarter of 2013, up approximately 7% compared to the fourth quarter of 2012 net sales of $172.9 million. Earnings per diluted share for the fourth quarter of 2013 were $1.07 compared to $0.99 for the fourth quarter of 2012, with non-GAAP earnings per diluted share increasing approximately 13% to $0.98 per share for the fourth quarter of 2013 from $.87 a share for the fourth quarter of 2012 and adjusted EBITDA increasing 11% to $21 million for the fourth quarter of 2013 and $18.9 million for the fourth quarter of 2012. Turning to the full-year, net sales for 2013 were a record $729.4 million compared to $708.2 million for 2012. Earnings per diluted share for 2013 were $4.27 compared to earnings per diluted share of $3.53 for 2012, with non-GAAP earnings per diluted share increasing approximately 10% to $3.84 in 2013 compared to $3.49 in 2012. And adjusted EBITDA increasing 11% to a record $89.6 million for 2013 from $80.9 million for 2012. We provide a non-GAAP earnings per diluted share table in an effort to provide shareholders with visibility into Quaker operations excluding certain items, which we believe do not reflect our core operations. Starting with, but not limited to earnings related to Primex, our investment in a captive insurance company. Such table is outlined in chart 10 of the investor slide. Yesterday's earnings release and our form 10-K filed this morning. Notably a key metric for…

Thank you, Margo. At this stage, we’d like to address any questions from any participants on this conference call. George D'angelo - Jefferies & Company: Hi, good morning. This is George D'angelo sitting in for Laurence today.

Hi, George. George D'angelo - Jefferies & Company: Good morning. How sustainable are gross margins at these levels. I know you spoke a bit about it, but if you could give more color that will be great.

Sure. We would expect that over the long-term our gross margins will be at that 35% mark, that’s our best guess. As you know they kind of go plus or minus around that range and it has a lot of things to do around our contracts and timing and adjustments for raw materials around that. So, long-term we give that guidance. We don’t really give too much guidance on the short-term around gross margin percentages. George D'angelo - Jefferies & Company: Okay, thanks. So, our market share gains a function of new services and processes with existing customers or would you say they’re more about winning new customers?

It is a combination of both, as we tend to -- over time one of our strategies is to take more share from our existing customers where we may go in and sell them one product or a few products, and that over time increase the basket of products that we sell them, so that’s one aspect or maybe they, we sell them or at one steel mill or and we pick up another steel mill from them. Another way we’re growing and increasing our share in this space is well as we made a series of acquisitions, smaller ones kind of over the past three and half years or so and we picked up five new technologies. And generally picked up those technologies in one region of the world, and we’re still in the midst or early stages of taking that new technology and then selling it to our existing customer base, so that’s another way we’re taking market share. George D'angelo - Jefferies & Company: Okay, great. Thank you.

Thanks, George.

Thank you. Our next question comes from the line of Mike Harrison with First Analysis Corporation. Please proceed with your question.

Hi, good morning.

Good morning, Mike.

Good morning.

SG&A costs if I exclude the special items that you called out still looked relatively high as a percent of sales. If I look back over the last three to four year’s, were there some unusual kind of catch-ups or accruals related to bonus or the merit pay that you called out in the quarter.

I think we mentioned -- I mentioned in my script that we do have incentive comp in the fourth quarter and that was noteworthy in the SG&A. And an increase related to higher bonus levels year-over-year due to higher net results.

I guess my question is that, isn’t that something that you typically would accrue for across the four quarters of the year or was there kind of an unusual catch-up during the fourth quarter that made, that accounts for that bump up in SG&A as a percent of sales?

I carefully managed, we always carefully accrued according to the requirement we have under the accounting standards every quarter. It's carefully done, and yes there is a noteworthy change in the last quarter as it becomes clear where we are going to end up.

Okay, got it.

That’s when the information becomes available to us, and that’s accrued in a course of GAAP.

Right, okay. And then, reading the papers we have seen more automakers talk about shifting to aluminum body panels to save on weight and we have even heard some anecdotes that rolled aluminum is starting to be short supply. Can you talk a little bit about the positives and negative of that trend as it relates to your business and you obviously have some exposure in aluminum rolling oils, but I am wondering if that’s really in that neutral if it displaces some of the rolled steel for automotive applications.

Sure. Yes, I mean there is pluses and minuses certainly on the steel side that would be a negative impact, but everything we see in our business and it doesn’t change our comments about the kind of growth we see going forward here not only this year but in the longer term. But we still think steel is a good business and we’ll continue to grow. But we also have from a positive side we also have positive exposure from aluminum as well. But as you mentioned we are especially in a nice space, we have a very good share on the aluminum industry. So, we pick up anything we do there, we may pick up some part of that plus if aluminum picks up we have some other products that we besides rolling oils or for example that we would sell into the aluminum industry as well. So, it’s not like a total negative to us and we haven't really done, I don’t have the analysis in front of me if it's a true positive, but we don’t think it's a major event for us.

All right, and then last one I have is on South America side, do the math on what the quarter looked like. It looks like you had good margin improvements for the full-year, but specifically in the fourth quarter it looks like operating margin declined and I guess I was a little bit surprised to see that given your commentary that the restructuring actions are starting to take affect now. So, can you give us any color on what was going on with Q4 margins in South America, and what our expectations should look like for margin there going forward?

Yes, I mean it should -- that would -- I think one of the big drivers in the fourth quarter with South America is just the seasonality impact. The lower volumes that we have down there and the impact that has on our -- again going forward as I mentioned I think all regions of the world I think will have at least some modest impact. So, I would think the margins should be improved in 2014.

All right. Thanks very much.

Thank you, Mike.

Thank you.

Thank you. Our next question comes from the line of Liam Burke with Janney Capital Markets. Please proceed with your question.

Thank you. Good morning, Mike. Good morning, Margaret.

Hi, Liam.

Good morning.

Mike, can you give us a little more detail on the breakdown on the revenue growth between the I’ll call it old traditional Quaker products and the new products that you acquired over the last several years in the five acquisitions you talked about?

I don’t know. I think first of all, a lot of times it becomes some intermixed at times and it's -- for our acquisitions we have our acquisitions of sales that are growing and then we have our new products from the acquisitions that are really kind of intermixed in our existing business. So, we tend not to look at that as maybe as just as you split it out. But I would say, the overall growth is a kind of a mixture of us between the markets picking up all over the world as well just taking share out of the market place either through new acquisitions or through market share gains.

Okay. And you had some plant expansion in China, you’ve done some rearranging in plants in the U.S. Do you have any capital projects scheduled or are we looking at sort of back to a normal CapEx schedule here?

I think a relatively normal kind of schedule where we do have a plant in India that we’re looking at leasing and probably I mentioned that in the past. But when you do things in India it seems to take a longer period of time, so and even there when you’re building one it's not that dramatic of a cost. So, that’s the only thing that’s kind of one of the more significant project for us. So, I think it's more of a typical level of CapEx.

And any elevation that you see, just isn't going to move those needle if it’s a few million dollars. So we’re on track for our pre-normalized levels.

Okay, great. And then Margaret you talked about some puts and takes in the effective tax rate, what would be a net guess on 2014?

I mentioned that we are looking at 30% for 2014, and it's early in the year and so we’re saying that plus or minus two percentage points.

Great. Thank you, Mike. Thank you, Margaret.

Thanks, Liam.

Thank you.

Thank you. (Operator Instructions) Our next question comes from the line of Summit Roshan with KeyBanc Capital Markets. Please proceed with your question.

Good morning guys and congrats on good closeout for ’13.

Thank you.

Thank you.

Looking at the billion dollar target for 2015, it looks like you’re still targeting that level, can you give us a feel for what you’re looking for or you would near organically to get there, obviously that’s going to take in some acquisitions that’s pretty sizable. So, if you can give us a little bit more color on, if you think that’s still achievable, what type of organic growth you need to get there and any acquisitions that you might have in the pipeline to help you get there?

Sure. As you mentioned I mean it's really, we can’t just do it with organic growth. That would be unrealistic at this stage. So while we expect to have good organic growth in our business. We do would need a significant acquisition to make something like that happen and or a series of acquisitions. And as we both said in our comment’s that’s something we’re actively working on. It's hard to really predict the timing of acquisitions and when they may occur. There’s certainly a number of companies out there in our space that we’re very interested in that can be sizable or meaningful that are small companies, both medium companies, large companies a lot of more are family run, some are owned by private equity. And it really doesn’t matter it's kind of we put a lot of effort and time and keeping close with companies and have conversations around it, but it's really, it's tough to predict when kind of they resell and we agree on the price to buy, so it's -- but that you’re right I mean, we definitely need a pre-sizable acquisition to hit that target in 2015.

Okay. And maybe just to look at that a little bit more, any reason we wouldn’t see an acquisition I know Margo had mentioned that if nothing were to come to fruition you might look at -- take a look at the capital structure and use of cash again. Is there anything particular that you’re seeing in the market, whether it's valuation GAAP or maybe you’re not seeing the right technologies that you’re interested in as to why we haven’t seen an acquisition. I know its been a little bit since you’ve seen one.

It's really availability of companies. Again we’re looking in all different parts of the world like, I can honestly say we’re looking at opportunities in different parts of world right now and at different sizes. And it's just a matter of when something comes available. So, it's not too much lets say disagreement of valuation or things like that it's much as it is, the companies that we’re interested in that are willing to sell at this point in time, that’s kind of the issue. And so we continue to work at that.

Okay, that’s helpful. And just looking at the fourth quarter, a question around the leverage there, it sound little like the raw material environment was benign. Your volumes are up sequentially, but gross margins ticked down a few basis points. Could you just give a little bit of color there?

Sure. We have -- as raw materials change in the market place we have, it can also impact up or down and it’ll also impact out adjustments and our pricing to customers. Some customers have contracts that are indexed and go up and down with our raw material pricing and there’s lag effects in some of these, so if this works both ways up or down and if raw materials go up or down and then we have a price adjustment based on an index and but not -- so you can have definitely fluctuation in our gross margin over time and that’s why we say long-term we feel we’re going to be in that 35% range.

Okay. And then maybe taking that point a little bit further, if we look over the long-term helping to get a better feel for the leverage that’s built into the model, I know over the past couple of years SG&A costs have gravitated up a little bit and I know you’ve targeted 35% gross margins, half margins I know it's been targeted around the 10% level. And as I think about, if you were to achieve that billion dollars in sales, whether it was through organic growth over time or through an acquisition, would it be achievable that you get that margin to gravitate a little bit higher maybe potentially into the low teens on an operating basis.

I agree with your principle and I agree with anything you’re saying as far as, as we get bigger and put on more revenue and we grow whether it's organically or through acquisitions. I do believe there should be some improvement in our operating margins over time, like again we won't -- we tend not to give out predictions, forecast with that kind of stuff, but we do -- I do agree with everything you kind of said there.

Great. Thanks.

Thank you.

Thank you. Mr. Barry, there are no further questions at this time. I would like to turn the floor back over to you for closing comments.

Okay. Since we have not further questions, we will end our conference call now and I want to thank all of you for your interest today. We are pleased with our results in the fourth quarter and for the full-year, and we continue to be confident in the future of Quaker Chemical. Our next conference call for the first quarter results will be in late April or early May, and if you have any questions in the meantime, please feel free to contact Margaret Loebl or myself. Thank you again for your interest in Quaker Chemical.

Thank you. This concludes today's teleconference. You may disconnect your lines at this time. Thank you for your participation.