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Dec 31, 2021
NewMarket Q4 2021 Earnings Report
Reported fourth quarter and full year results for 2021.
Key Takeaways
NewMarket Corporation's net income for the fourth quarter of 2021 was $17.2 million, or $1.65 per share, compared to $66.9 million, or $6.12 per share, for the fourth quarter of 2020. Sales for the petroleum additives segment were $573.4 million, up from $525.2 million in the fourth quarter of 2020.
Net income for the fourth quarter of 2021 was $17.2 million, or $1.65 per share.
Sales for the petroleum additives segment for the fourth quarter of 2021 were $573.4 million, up from $525.2 million in the fourth quarter of 2020.
Shipments decreased 1.6% between periods, with decreases in both lubricant additives and fuel additives shipments.
Petroleum additives operating profit for the fourth quarter of 2021 was $40.7 million, compared to $84.3 million for the same period last year, mainly due to higher raw material and operating costs, partially offset by increased selling prices.
NewMarket
NewMarket
NewMarket Revenue by Segment
Revenue by Segment
Petroleum Additives Revenue
CapyFin.comAll Other Revenue
CapyFin.com Forward Guidance
As we look forward to 2022 and beyond, we expect continued strength in our petroleum additives sales and shipments. Our views toward the fundamentals of our industry remain unchanged with the petroleum additives market growing at 1% to 2% for the foreseeable future, and we expect to exceed that growth rate.
Positive Outlook
- Expect continued strength in petroleum additives sales and shipments.
- Petroleum additives market growing at 1% to 2% for the foreseeable future, and we expect to exceed that growth rate.
- Ongoing investments in supply capability.
- Technology- driven initiatives.
- Fundamentals of how we run our business will continue to be beneficial for all our stakeholders.
Challenges Ahead
- Margin recovery and cost control will be priorities throughout 2022 so that we will return to our historical profit margin range.
- Working hard to resolve continuing supply chain issues to meet our customers’ growing needs.
- Prolonged period of escalating raw material costs.
- Significant increases in many elements of our operating costs such as utilities, logistics, insurance, and third-party manufacturing services.
- Worldwide supply chain disruptions continue to negatively impact our business.
Revenue & Expenses
Visualization of income flow from segment revenue to net income