- Petroleum Additives Operating Profit Improves 41 Percent
- Polartech Acquisition Completed
- Repurchased 168,549 Shares of Common Stock
Richmond, VA, April 21, 2010 – NewMarket Corporation (NYSE – NEU) President and Chief Executive Officer, Thomas E. Gottwald, released the following earnings report of the Company’s operations for the first quarter 2010.
Net income for the first quarter 2010 increased to $42.1 million, or $2.78 per share, an improvement of 47 percent over net income for the first quarter of 2009 of $28.7 million, or $1.88 per share.
First quarter 2010 results reflect another strong performance in petroleum additives with operating profit improving to $70.4 million. This represents an improvement of 41 percent over operating profit for the first quarter of last year of $50.1 million. The increase reflects the benefit of higher lubricant additives operating profits. Sales of petroleum additives in the first quarter of this year increased to $389.3 million, an increase of 16 percent from sales for the first quarter of last year of $334.8 million. Shipments increased 21 percent for the first quarter over the same period last year predominately in the lubricant additives product lines. Shipments were especially weak in the first two months of last year and are now at a level we believe is near normal. Our petroleum additives group continues to focus on providing our customers with the innovative products they need to serve this market as evidenced by the increased investment we have made in research and development.
This continued strong operating performance strengthens our financial position by providing excellent cash flow. During the first quarter of this year, we utilized cash on hand to acquire Polartech, a leading metalworking additive company, and to purchase 168,549 shares of our common stock at an average price of $84.70 per share. We also reduced debt on Foundry Park I by over $30 million and obtained five year financing to repay the construction loan that was due later this year. Our cash position remains strong with a balance of $88 million at the end of the quarter, compared to a cash balance of $151.8 million at year end 2009.
We are pleased with our performance in the first quarter of this year. Our investments in geographic expansion have led to improvements in all regions. During the quarter, we welcomed over 100 employees of Polartech into our corporate family and are excited about integrating this business and expanding our global footprint with the production facilities in India and China. Our investments in research and development have positioned us well to meet new industry specifications and increased customer requirements, and we continue to make the investments in people, technology and facilities in order to help our customers meet their needs and to continue to succeed in this marketplace.
Thomas E. Gottwald
As a reminder, a conference call and Internet webcast is scheduled for 3:00 p.m. EDT on Thursday, April 22, 2010, to review first quarter financial results. You can access the conference call live by dialing 1-877-407-9210 (domestic) or 1-201-689-8049 (international) and requesting the NewMarket conference call. To avoid delays, callers should dial in five minutes early. The call will also be broadcast via the Internet and can be accessed through the company’s website at www.NewMarket.com or www.investorcalendar.com. A teleconference replay of the call will be available until April 29, 2010 at 11:59 p.m. EDT by dialing 1-877-660-6853 (domestic) and 1-201-612-7415 (international). The account number is 286. The conference ID number is 349178. A webcast replay will be available for 30 days.
NewMarket Corporation through its subsidiaries, Afton Chemical Corporation and Ethyl Corporation, develops, manufactures, blends, and delivers chemical additives that enhance the performance of petroleum products. From custom-formulated chemical blends to market-general additive components, the NewMarket family of companies provides the world with the technology to make fuels burn cleaner, engines run smoother and machines last longer.
Some of the information contained in this press release constitutes forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Although NewMarket’s management believes its expectations are based on reasonable assumptions within the bounds of its knowledge of its business and operations, there can be no assurance that actual results will not differ materially from expectations.
Factors that could cause actual results to differ materially from expectations include, but are not limited to: availability of raw materials and transportation systems; ability to respond effectively to technological changes in our industry; supply disruptions at single sourced facilities; failure to protect our intellectual property rights; political, economic, and regulatory factors concerning our products; hazards common to chemical businesses; occurrence or threat of extraordinary events, including natural disasters and terrorist attacks; competition from other manufacturers; sudden or sharp raw materials price increases; gain or loss of significant customers; risks related to operating outside of the United States; the impact of fluctuations in foreign exchange rates; future governmental regulation; resolution of environmental liabilities or legal proceedings; inability to complete future acquisitions or successfully integrate future acquisitions into our business and other factors detailed from time to time in the reports that NewMarket files with the Securities and Exchange Commission, including the risk factors in Item 1A, “Risk Factors” of our 2009 Annual Report on Form 10-K, which is available to shareholders upon request.
You should keep in mind that any forward-looking statement made by NewMarket in the foregoing discussion speaks only as of the date on which such forward-looking statement is made. New risks and uncertainties come up from time to time, and it is impossible for us to predict these events or how they may affect the company. We have no duty to, and do not intend to, update or revise the forward-looking statements in this discussion after the date hereof, except as may be required by law. In light of these risks and uncertainties, you should keep in mind that the events described in any forward-looking statement made in this discussion, or elsewhere, might not occur.
FOR INVESTOR INFORMATION CONTACT:
David A. Fiorenza
Additional Financial Information (PDF)