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Mar 31, 2021
NewMarket Q1 2021 Earnings Report
Reported first quarter results with net income of $69.7 million and EPS of $6.38.
Key Takeaways
NewMarket Corporation reported a decrease in net income for the first quarter of 2021, with $69.7 million compared to $85.5 million for the same period in 2020. EPS also decreased from $7.67 to $6.38. Sales for the petroleum additives segment increased by 1.4%, while operating profit decreased by 17.2%.
Net income for the first quarter of 2021 was $69.7 million, or $6.38 per share.
Petroleum additives sales increased by 1.4% compared to the same period last year.
Petroleum additives operating profit decreased by 17.2% compared to the first quarter of last year.
The company issued $400 million 2.70% senior notes due in 2031 to repay $350 million 4.10% senior notes due in 2022 and for general corporate purposes.
NewMarket
NewMarket
NewMarket Revenue by Segment
Revenue by Segment
Petroleum Additives Revenue
CapyFin.comAll Other Revenue
CapyFin.com Forward Guidance
The pace and stability of improvement in demand for our products will continue to depend heavily on economic recovery and the rate at which restrictions are lifted and remain lifted.
Positive Outlook
- Successful vaccination efforts will help provide more stability in the global economy in 2021.
- Focus on margin improvement during 2021 to help ensure our operating margins remain at the historical ranges our shareholders have come to expect.
- Emphasis on satisfying customer needs.
- Generating solid operating results.
- Promoting the greatest long-term value for our shareholders, customers and employees.
Challenges Ahead
- Government restrictions on travel and work related to COVID-19 have had a negative effect on our business.
- Mindful of the negative impact that our increasing raw material costs have on our operating margins.
- Lower selling prices
- Higher conversion costs
- Higher raw material costs
Revenue & Expenses
Visualization of income flow from segment revenue to net income