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Jun 30, 2022

NewMarket Q2 2022 Earnings Report

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

Key Takeaways

NewMarket Corporation reported a net income of $66.5 million and earnings per share of $6.54 for the second quarter of 2022, compared to a net income of $52.0 million and earnings per share of $4.75 for the second quarter of 2021. Sales for the petroleum additives segment increased to $721.0 million, with an operating profit of $91.2 million.

Second quarter net income reached $66.5 million, with earnings per share at $6.54.

Petroleum additives sales for the second quarter were $721.0 million, up from $586.6 million in the prior year.

Petroleum additives operating profit for the second quarter was $91.2 million, compared to $74.2 million for the same period last year.

Focus remains on margin recovery and cost control amidst the ongoing inflationary environment.

Total Revenue
$724M
Previous year: $591M
+22.5%
EPS
$6.54
Previous year: $4.75
+37.7%
Gross Profit
$157M
Previous year: $141M
+11.7%
Cash and Equivalents
$79.5M
Previous year: $154M
-48.3%
Free Cash Flow
$2.39M
Previous year: $30.8M
-92.2%
Total Assets
$2.33B
Previous year: $2.48B
-6.0%

NewMarket

NewMarket

NewMarket Revenue by Segment

Forward Guidance

The company expects the petroleum additives market to grow at 1% to 2% for the foreseeable future and expects to exceed that growth rate.

Positive Outlook

  • Ongoing investments in supply capability.
  • Technology-driven initiatives.
  • Long-term view.
  • Safety-first culture.
  • Customer-focused solutions.

Challenges Ahead

  • Worldwide supply chain disruptions continue to negatively impact our business.
  • Ongoing inflationary environment.
  • Availability of raw materials and distribution systems.
  • Hazards common to chemical businesses.
  • Failure to protect our intellectual property rights.