Earnings Per Share

9 Months Ended

Sep. 30, 2011

Note 7 – Earnings Per Share

The Company applies FASB's guidance regarding the calculation of earnings per share using the two-class method. The Company includes nonvested stock awards with rights to non-forfeitable dividends as part of its basic weighted average share calculation.

The following table summarizes earnings per share (EPS) calculations:

		Three Months Ended				Nine Months Ended
			September 30,				September 30,
		2011		2010		2011		2010
Basic Earnings per Common Share
	Net income attributable to Quaker Chemical Corporation	$	13,358	$	6,340	$	33,799	$	24,912
	Less: income allocated to participating securities		(224)		(126)		(611)		(522)
	Net income available to common shareholders	$	13,134	$	6,214	$	33,188	$	24,390
	Basic weighted average common shares outstanding		12,621,459		11,088,830		11,989,748		10,981,302
Basic earnings per common share		$	1.04	$	0.56	$	2.77	$	2.22

Diluted Earnings per Common Share
	Net income attributable to Quaker Chemical Corporation	$	13,358	$	6,340	$	33,799	$	24,912
	Less: income allocated to participating securities		(222)		(125)		(604)		(516)
	Net income available to common shareholders	$	13,136	$	6,215	$	33,195	$	24,396
	Basic weighted average common shares outstanding		12,621,459		11,088,830		11,989,748		10,981,302
	Effect of dilutive securities, employee stock options		148,919		209,624		166,787		181,620
	Diluted weighted average common shares outstanding		12,770,378		11,298,454		12,156,535		11,162,922
Diluted earnings per common share		$	1.03	$	0.55	$	2.73	$	2.19

The following number of stock options are not included in diluted earnings per share since the effect would have been anti-dilutive: 15,740 and 0 for the three months ended September 30, 2011 and 2010, and 11,356 and 0 for the nine months ended September 30, 2011 and 2010, respectively.