PQG is a Pennsylvania-based provider of specialty catalysts, chemicals, materials, and services for use with fuels and emissions controls, consumer products, highway construction, packaging and engineering plastics, and industrial applications.
The company describes its catalysts as highly technical products that require customer collaboration and significant lead time to develop. This method helped the company develop zeolite-based catalysts, effective in reducing pollutants in diesel engines.
Its operations are broken down into two segments. The Environmental Catalysts and Services segment contains three product groups—silica catalysts, zeolite catalysts, and refining services. The Performance Materials and Chemicals segment has two product groups—performance materials and performance chemicals.
Products and services offered by the company allow for production of vehicles with improved fuel efficiency and cleaner emissions. Furthermore, the company’s materials used in consumer products help brighten teeth, soften skin, and improve would healing times.
PQ Group served more than 4,000 customers globally in 2016. The company has 72 manufacturing facilities across six continents. Performance chemicals and performance materials are sold in the United States, Mexico, Brazil, Central and Western Europe, South Africa, Australia, and Southeast Asia. The company also offers refining services in the United States and sells catalysts in the United States Europe, and Southeast Asia.
The company believes its future growth will be supported by the fact that its additives, catalysts, and services improve the overall quality of products while making up a minor portion of the final cost of these products.
Through the first six months of 2017, the company’s sales totaled $722.20 million, up 94.4% year-over-year. Sales in 2016 totaled $1.06 billion, representing year-over-year growth of 173.7%. Through the first six months of 2017, the company’s sales in the Performance Materials & Chemicals segment grew 181.4% year-over-year to $488.71 million. Sales in the Environmental Catalysts & Services segment totaled $235.27 million, showing year-over-year growth of 18.7%.
Net cash provided by operating activities for the first six months of 2017 totaled $21.75 million. Cash provided by operating activities in 2016 totaled $119.72 million, representing year-over-year growth of 167.7%.
The company has no current plans to pay a dividend, but its Board of Directors has the right to change the dividend policy in the future. The company plans to regularly reevaluate its dividend policy.