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Sep 30, 2022

NewMarket Q3 2022 Earnings Report

Reported strong third quarter results with increased sales and earnings.

Key Takeaways

NewMarket Corporation reported a net income of $63.2 million for the third quarter of 2022, an increase from $52.0 million in the same period last year. Earnings per share rose to $6.32 from $4.80 in the prior year period. Sales for the petroleum additives segment increased to $692.7 million from $619.1 million in the third quarter of 2021.

Third quarter net income reached $63.2 million, translating to earnings per share of $6.32.

Petroleum additives sales for the third quarter increased to $692.7 million.

Petroleum additives operating profit for the third quarter was $83.0 million.

Shipments decreased 8.5% between quarterly periods, with decreases in both lubricant additives and fuel additives shipments across all regions except Latin America.

Total Revenue
$696M
Previous year: $622M
+11.9%
EPS
$6.32
Previous year: $4.8
+31.7%
Gross Profit
$148M
Previous year: $138M
+7.3%
Cash and Equivalents
$72M
Previous year: $59.6M
+20.7%
Free Cash Flow
-$21M
Previous year: $21.3M
-198.4%
Total Assets
$2.34B
Previous year: $2.44B
-4.1%

NewMarket

NewMarket

NewMarket Revenue by Segment

Forward Guidance

NewMarket expects the petroleum additives market to grow at 1% to 2% for the foreseeable future and aims to exceed that growth rate. The company is focused on margin recovery, cost control, and resolving supply chain issues to meet customer needs.

Positive Outlook

  • Petroleum additives market is expected to grow at 1% to 2%.
  • Company aims to exceed the market growth rate.
  • Focus on margin recovery and cost control.
  • Ongoing investments in supply capability.
  • Technology-driven initiatives.

Challenges Ahead

  • Ongoing inflationary environment challenges.
  • Worldwide supply chain disruptions negatively impact the business.
  • Shipments decreased 8.5% between quarterly periods.
  • Higher raw material and operating costs.
  • Decreased shipments in lubricant additives and fuel additives shipments across all regions except Latin America.

Revenue & Expenses

Visualization of income flow from segment revenue to net income