NewMarket Q4 2020 Earnings Report
Key Takeaways
NewMarket Corporation reported a net income of $66.9 million, or $6.12 per share, for the fourth quarter of 2020, compared to $50.1 million, or $4.48 per share, for the fourth quarter of 2019. Sales for the petroleum additives segment were $525.2 million, a decrease of 1.2% compared to the same period last year, while the petroleum additives operating profit increased to $84.3 million from $73.6 million in Q4 2019.
Net income for Q4 2020 was $66.9 million, or $6.12 per share, compared to $50.1 million, or $4.48 per share, for Q4 2019.
Petroleum additives sales for Q4 2020 were $525.2 million, down 1.2% compared to the same period last year.
Petroleum additives operating profit for Q4 2020 was $84.3 million, compared to $73.6 million for Q4 2019.
The effective tax rate for 2020 was 18.3%, a decrease compared to 23.3% for 2019, mainly due to finalizing prior year tax filings and releasing certain tax reserves.
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NewMarket Revenue by Segment
Forward Guidance
Looking ahead to 2021, NewMarket will continue to monitor government restrictions and vaccination programs, focusing on long-term success, customer needs, and shareholder value.
Positive Outlook
- Emphasis on satisfying customer needs.
- Generating solid operating results.
- Promoting the greatest long-term value for shareholders, customers and employees.
- Long-term view.
- Customer-focused solutions.
Challenges Ahead
- Government restrictions on the movement of people, goods and services.
- Status of vaccination programs that are being implemented globally.
- Economic uncertainty resulting from the ongoing effects of the COVID-19 pandemic.
- Related restrictions on the movement of people, goods and services.
- Renewed restrictions on travel and work in certain countries had a negative effect on our business.
Revenue & Expenses
Visualization of income flow from segment revenue to net income