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Mar 31, 2023
NewMarket Q1 2023 Earnings Report
NewMarket's financial performance improved with increased net income and petroleum additives operating profit.
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.
NewMarket
NewMarket
NewMarket Revenue by Segment
Revenue by Segment
Specialty Materials Revenue
CapyFin.comAll Other Revenue
CapyFin.com 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.
Revenue & Expenses
Visualization of income flow from segment revenue to net income