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NewMarket
🇺🇸 NYSE:NEU
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•
Mar 31, 2020

NewMarket Q1 2020 Earnings Report

Reported strong first quarter results with increased net income and earnings per share.

Key Takeaways

NewMarket Corporation reported a strong first quarter with net income increasing to $85.5 million, or $7.67 per share, compared to $62.2 million, or $5.57 per share, for the same period last year. Sales for the petroleum additives segment rose by 4.6% to $557.4 million, and the company repurchased 252,383 shares of its common stock for $94.3 million.

Net income increased to $85.5 million, or $7.67 per share.

Petroleum additives sales grew by 4.6% to $557.4 million.

Petroleum additives operating profit increased to $113.7 million.

252,383 shares of common stock were repurchased for $94.3 million.

Total Revenue
$559M
Previous year: $537M
+4.2%
EPS
$7.67
Previous year: $5.57
+37.7%
Gross Profit
$181M
Cash and Equivalents
$179M
Total Assets
$1.93B

NewMarket

NewMarket

NewMarket Revenue by Segment

Forward Guidance

The company anticipates operations for the remainder of the year will be impacted by the current economic environment, and they expect to see a sizeable decline in shipments in the second quarter of 2020.

Positive Outlook

  • Encouraged by recovery seen in China business.
  • Expect the rest of the global market will also begin to recover when government restrictions are eased.
  • All global operations, manufacturing plants and research and development centers will continue to be operational.
  • The chemical industry and our products are recognized as essential for the transportation of goods and services.
  • Will continue to focus on long-term objectives and will remain well-positioned for the future with a strong balance sheet and conservative fiscal policy.

Challenges Ahead

  • Expecting operations to be impacted by the current economic environment.
  • Experiencing a short-term decrease in demand for lubricant and fuel additives due to the economic downturn.
  • Expect to see a sizeable decline in shipments in the second quarter of 2020.
  • Global business will see varying effects on demand that will differ by region based on product portfolio and geographic coverage.
  • Inventory needs will be fluctuating due to demands of the changing environment.

Revenue & Expenses

Visualization of income flow from segment revenue to net income

Company Overview

Full financial data and analysis

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