NewMarket Q1 2022 Earnings Report
Key Takeaways
NewMarket Corporation reported a decrease in net income for the first quarter of 2022, with $59.3 million compared to $69.7 million in the same period last year. EPS also decreased to $5.75 from $6.38. However, sales for the petroleum additives segment increased to $660.3 million from $564.9 million in the first quarter of 2021.
Net income decreased to $59.3 million, or $5.75 per share.
Petroleum additives sales increased to $660.3 million.
Petroleum additives operating profit was $86.9 million.
Shipments increased 2.3% with growth in lubricant and fuel additives shipments across all regions except Asia Pacific.
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NewMarket Revenue by Segment
Forward Guidance
The company expects continued strength in petroleum additives sales and shipments, anticipating to exceed the market growth rate of 1% to 2%.
Positive Outlook
- Expect continued strength in petroleum additives sales and shipments.
- Anticipate exceeding the petroleum additives market growth rate of 1% to 2%.
- Ongoing investments in supply capability.
- Technology-driven initiatives.
- Fundamentals of business will continue to be beneficial for all stakeholders.
Challenges Ahead
- Increasing raw material and operating costs.
- Worldwide supply chain disruptions.
- Challenges in resolving continuing supply chain issues.
- Pressure on operating margin.
- Need for margin recovery and cost control.