NewMarket Q1 2023 Earnings Report
Key Takeaways
NewMarket Corporation reported a strong first quarter in 2023, with net income increasing to $97.6 million, or $10.09 per share, driven by increased petroleum additives sales and operating profit. The company focused on cost control and margin recovery, with improvements in the supply chain.
Net income reached $97.6 million, or $10.09 per share, compared to $59.3 million, or $5.75 per share in Q1 2022.
Petroleum additives sales increased to $700.0 million from $660.3 million in the same period last year.
Petroleum additives operating profit rose to $132.1 million, up from $86.9 million in Q1 2022.
The company returned $48.8 million to shareholders through dividends and share repurchases.
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Forward Guidance
NewMarket Corporation remains focused on long-term value creation for shareholders and customers with cost control and margin recovery remaining high priorities.
Positive Outlook
- Improvements in supply chain disruptions.
- Continued focus on cost control.
- Margin recovery will remain high priorities.
- Long-term view and safety-first culture.
- Technology-driven product offerings.
Challenges Ahead
- Inflation continues to be a concern.
- Shipments were down 15.4% due to economic slowdown and customer destocking.
- Higher raw material and operating costs.
- Lower shipments impacted operating profit.
- General economic slowdown.