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Dec 31, 2019
NewMarket Q4 2019 Earnings Report
NewMarket's Q4 2019 earnings decreased compared to the same period last year, with net income at $50.1 million and EPS at $4.48. Sales for the petroleum additives segment were $531.8 million, a slight decrease of 1.0% year-over-year. Shipments increased 1.4% after a period of decline, driven by lubricant additives.
Key Takeaways
NewMarket Corporation reported a decrease in fourth-quarter earnings, with net income at $50.1 million, or $4.48 per share, compared to $62.8 million, or $5.58 per share, in the fourth quarter of 2018. Sales for the petroleum additives segment were $531.8 million, down 1.0% compared to the same period last year, but shipments increased 1.4% following a period of decline.
Q4 net income decreased to $50.1 million, or $4.48 per share, compared to $62.8 million, or $5.58 per share, in Q4 2018.
Sales for the petroleum additives segment were $531.8 million, a decrease of 1.0% compared to the same period last year.
Petroleum additives operating profit was $73.6 million, compared to $79.5 million for the fourth quarter of 2018.
Shipments increased 1.4% between periods, driven by lubricant additives shipments.
NewMarket
NewMarket
NewMarket Revenue by Segment
Revenue by Segment
Petroleum Additives Revenue
CapyFin.comAll Other Revenue
CapyFin.com Forward Guidance
NewMarket expects continued strength in its operations and the petroleum additives industry as a whole, focusing on managing its business and operating margins to ensure a robust future. The company anticipates the petroleum additives market to grow at 1% to 2% for the foreseeable future and believes it will exceed that growth rate.
Positive Outlook
- Continued strength in operations is expected.
- Continued strength in petroleum additives industry is expected.
- Focus on managing business and operating margins.
- Commitment to providing innovative solutions to customers.
- Investments in supply capabilities.
Challenges Ahead
- Challenging economic environment.
- Sustained increase in raw material costs.
- Potential risks related to operating outside of the United States.
- Impact of fluctuations in foreign exchange rates.
- An information technology system failure or security breach.
Revenue & Expenses
Visualization of income flow from segment revenue to net income