NewMarket Q3 2020 Earnings Report
Key Takeaways
NewMarket Corporation reported a net income of $95.8 million for the third quarter of 2020, or $8.77 per share, compared to $67.8 million, or $6.06 per share, for the third quarter of 2019. The results reflect a strong market recovery in petroleum additives and include a $16.5 million gain from the sale of non-operating real estate.
Net income for the third quarter of 2020 was $95.8 million, or $8.77 per share.
Third quarter net income includes a gain of $16.5 million from the sale of non-operating real estate.
Petroleum additives operating profit increased to $102.2 million compared to $94.8 million for the same period last year.
Sales for the petroleum additives segment were $510.3 million, down from $550.6 million in the third quarter of 2019.
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NewMarket Revenue by Segment
Forward Guidance
The pace and stability of improvement will depend heavily on economic recovery and the rate at which government restrictions are lifted and remain lifted.
Positive Outlook
- Gasoline consumption and miles driven continuing to show improvement
- Industrial production beginning to rebound
- Automobile plants reopening and producing vehicles
- Demand for both lubricant and fuel additives has increased steadily throughout the quarter.
- Increase in shipments compared to the second quarter of over 25%.
Challenges Ahead
- Economic disruption due to the COVID-19 pandemic
- Related government restrictions
- The pace and stability of improvement will depend heavily on economic recovery
- The rate at which government restrictions are lifted
- The rate at which government restrictions remain lifted.