checkAd

     134  0 Kommentare NewMarket Corporation Reports Results for Third Quarter and First Nine Months of 2020

    NewMarket Corporation (NYSE:NEU) Chairman and Chief Executive Officer, Thomas E. Gottwald, released the following earnings report of the Company’s operations for the third quarter and first nine months of 2020.

    Net income for the third quarter of 2020 was $95.8 million, or $8.77 per share, compared to net income of $67.8 million, or $6.06 per share, for the third quarter of 2019. Third quarter net income includes a gain of $16.5 million related to the sale of a non-operating parcel of real estate. For the first nine months of 2020, net income was $203.7 million, or $18.52 per share, compared to net income of $204.2 million or $18.26 per share, for the first nine months of last year.

    Petroleum additives operating profit for the third quarter of 2020 was $102.2 million, compared to $94.8 million for the same period last year. The increase was due to lower raw material costs, selling, general, and administrative costs, and research and development costs, partially offset by changes in selling prices, higher conversion costs, and lower shipments. Petroleum additives operating profit for the first nine months of the year was $248.9 million compared to $285.6 million for the first nine months of 2019. The decrease was due to lower shipments, higher conversion costs, and changes in selling prices, partially offset by lower raw material costs, selling, general, and administrative costs, and research and development costs.

    Sales for the petroleum additives segment for the third quarter of 2020 were $510.3 million, down from $550.6 million in the third quarter of 2019. The decrease was due mainly to lower shipments and selling prices. Shipments decreased 3.2% between periods, mainly driven by decreases in fuel additives shipments. Petroleum additives sales for the first nine months of the year were $1.5 billion compared to sales in the first nine months of last year of $1.6 billion. The decrease was due mainly to lower shipments and selling prices. Shipments decreased 7.5% between periods, with decreases in both lubricant additives and fuel additives shipments.

    Our third quarter 2020 operating results reflected continued improvement in some of the key drivers that affect the performance of our business, consistent with what we began to see near the end of the second quarter. With gasoline consumption and miles driven continuing to show improvement and industrial production beginning to rebound, specifically related to automobile plants reopening and producing vehicles, demand for both our lubricant and fuel additives has increased steadily throughout the quarter. While our second quarter results were significantly impacted by the economic disruption due to the COVID-19 pandemic and the related government restrictions, these improvements in the third quarter of 2020 helped to drive an increase in shipments compared to the second quarter of over 25%. The pace and stability of improvement will depend heavily on economic recovery and the rate at which government restrictions are lifted and remain lifted.

    During the first nine months of 2020, we funded capital expenditures of $60.1 million, paid dividends of $62.7 million, and repurchased 270,963 shares of our common stock for a total of $101.4 million.

    Throughout the economic downturn associated with the COVID-19 pandemic, the chemical industry and our products have been recognized as essential for the transportation of goods and services. Our operating facilities have continued to function safely during 2020. We have procedures in place at each of our facilities to help ensure the well-being of our employees, as we see our responsibility to protect their health and safety as a top priority. Because of the commitment and dedication of our employees and our ability to remain operational throughout 2020, we have been able to work closely with our customers to ensure their supply demands are met throughout this unusual period.

    Lesen Sie auch

    As we navigate the current economic downturn, our business decisions will continue to be focused on the long-term success of our company, including emphasis on satisfying customer needs, generating solid operating results, and promoting the greatest long-term value for our shareholders, customers and employees. Those decisions include investing in capital improvements and research and development in support of our customers, using cash prudently to provide shareholder value, including dividends and repurchases of common stock, and ensuring we are well-positioned to stay the course with a strong balance sheet, conservative fiscal policies, and a dedicated team. We believe the fundamentals of how we run our business – a long-term view, safety and people first culture, customer-focused solutions, technology-driven product offerings, and a world-class supply chain capability – will continue to be beneficial for all our stakeholders.

    Sincerely,

    Thomas E. Gottwald

    The petroleum additives segment consists of the North America (the United States and Canada), Latin America (Mexico, Central America, and South America), Asia Pacific, and Europe/Middle East/Africa/India (Europe or EMEAI) regions.

    The Company has disclosed the non-GAAP financial measure EBITDA and the related calculation in the schedules included with this earnings release. EBITDA is defined as income from continuing operations before the deduction of interest and financing expenses, income taxes, depreciation (on property, plant and equipment) and amortization (on intangibles and lease right-of-use assets). The Company believes that even though this item is not required by or presented in accordance with United States generally accepted accounting principles (GAAP), this additional measure enhances understanding of the Company’s performance and period to period comparability. The Company believes that this item should not be considered an alternative to net income determined under GAAP.

    As a reminder, a conference call and Internet webcast is scheduled for 3:00 p.m. EDT on Thursday, October 29, 2020, to review third quarter 2020 financial results. You can access the conference call live by dialing 1-844-407-9500 (domestic) or 1-862-298-0850 (international) and requesting the NewMarket conference call. To avoid delays, callers should dial in five minutes early. A teleconference replay of the call will be available until November 5, 2020 at 3:00 p.m. EST by dialing 1-877-481-4010 (domestic) or 1-919-882-2331 (international). The replay ID number is 38031. The call will also be broadcast via the Internet and can be accessed through the Company’s website at www.NewMarket.com or www.webcaster4.com/Webcast/Page/2001/38031. A webcast replay will be available for 30 days.

    NewMarket Corporation, through its subsidiaries Afton Chemical Corporation and Ethyl Corporation, develops, manufactures, blends, and delivers chemical additives that enhance the performance of petroleum products. From custom-formulated additive packages to market-general additives, the NewMarket family of companies provides the world with the technology to make engines run smoother, machines last longer, and fuels burn cleaner.

    Some of the information contained in this press release constitutes forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Although NewMarket’s management believes its expectations are based on reasonable assumptions within the bounds of its knowledge of its business and operations, there can be no assurance that actual results will not differ materially from expectations.

    Factors that could cause actual results to differ materially from expectations include, but are not limited to, the availability of raw materials and distribution systems; disruptions at production facilities, including single-sourced facilities; hazards common to chemical businesses; the ability to respond effectively to technological changes in our industry; failure to protect our intellectual property rights; sudden or sharp raw material price increases; competition from other manufacturers; current and future governmental regulations; the gain or loss of significant customers; failure to attract and retain a highly-qualified workforce; an information technology system failure or security breach; the occurrence or threat of extraordinary events, including natural disasters; terrorist attacks and health-related epidemics such as the COVID-19 pandemic; risks related to operating outside of the United States; political, economic, and regulatory factors concerning our products; the impact of substantial indebtedness on our operational and financial flexibility; the impact of fluctuations in foreign exchange rates; resolution of environmental liabilities or legal proceedings; limitation of our insurance coverage; our inability to realize expected benefits from investment in our infrastructure or from recent or future acquisitions, or our inability to successfully integrate recent or future acquisitions into our business; the underperformance of our pension assets resulting in additional cash contributions to our pension plans; and other factors detailed from time to time in the reports that NewMarket files with the Securities and Exchange Commission, including the risk factors in Item 1A. “Risk Factors” of our 2019 Annual Report on Form 10-K and Part II. Item 1A. “Risk Factors” of our Quarterly Report on Form 10-Q for the quarterly period ended March 31, 2020, which are available to shareholders upon request.

    You should keep in mind that any forward-looking statement made by NewMarket in the foregoing discussion speaks only as of the date on which such forward-looking statement is made. New risks and uncertainties arise from time to time, and it is impossible for us to predict these events or how they may affect the Company. We have no duty to, and do not intend to, update or revise the forward-looking statements in this discussion after the date hereof, except as may be required by law. In light of these risks and uncertainties, you should keep in mind that the events described in any forward-looking statement made in this discussion, or elsewhere, might not occur.

    NEWMARKET CORPORATION AND SUBSIDIARIES

    SEGMENT RESULTS AND OTHER FINANCIAL INFORMATION

    (In thousands, except per-share amounts, unaudited)

     

     

     

    Third Quarter Ended

    September 30,

     

    Nine Months Ended

    September 30,

     

     

    2020

     

    2019

     

    2020

     

    2019

    Revenue:

     

     

     

     

     

     

     

     

    Petroleum additives

     

    $

    510,280

     

     

    $

    550,626

     

     

    $

    1,476,355

     

     

    $

    1,644,129

     

    All other

     

     

    2,589

     

     

     

    5,191

     

     

     

    6,795

     

     

     

    11,721

     

    Total

     

    $

    512,869

     

     

    $

    555,817

     

     

    $

    1,483,150

     

     

    $

    1,655,850

     

    Segment operating profit:

     

     

     

     

     

     

     

     

    Petroleum additives

     

    $

    102,186

     

     

    $

    94,765

     

     

    $

    248,918

     

     

    $

    285,620

     

    All other

     

     

    2,015

     

     

     

    (77

    )

     

     

    1,951

     

     

     

    92

     

    Segment operating profit

     

     

    104,201

     

     

     

    94,688

     

     

     

    250,869

     

     

     

    285,712

     

    Corporate unallocated expense

     

     

    (5,565

    )

     

     

    (6,473

    )

     

     

    (15,263

    )

     

     

    (15,842

    )

    Interest and financing expenses

     

     

    (6,466

    )

     

     

    (6,987

    )

     

     

    (20,575

    )

     

     

    (22,740

    )

    Other income (expense), net

     

     

    25,448

     

     

     

    6,230

     

     

     

    39,933

     

     

     

    17,827

     

    Income before income tax expense

     

    $

    117,618

     

     

    $

    87,458

     

     

    $

    254,964

     

     

    $

    264,957

     

    Net income

     

    $

    95,794

     

     

    $

    67,805

     

     

    $

    203,684

     

     

    $

    204,184

     

    Earnings per share - basic and diluted

     

    $

    8.77

     

     

    $

    6.06

     

     

    $

    18.52

     

     

    $

    18.26

     

    NEWMARKET CORPORATION AND SUBSIDIARIES

    CONSOLIDATED STATEMENTS OF INCOME

    (In thousands, except per-share amounts, unaudited)

     

     

     

    Third Quarter Ended

    September 30,

     

    Nine Months Ended

    September 30,

     

     

    2020

     

    2019

     

    2020

     

    2019

    Net sales

     

    $

    512,869

     

     

    $

    555,817

     

     

    $

    1,483,150

     

     

    $

    1,655,850

     

    Cost of goods sold

     

    346,262

     

     

    393,090

     

     

    1,038,898

     

     

    1,169,421

     

    Gross profit

     

    166,607

     

     

    162,727

     

     

    444,252

     

     

    486,429

     

    Selling, general, and administrative expenses

     

    34,690

     

     

    38,122

     

     

    105,837

     

     

    109,916

     

    Research, development, and testing expenses

     

    33,113

     

     

    36,387

     

     

    102,168

     

     

    106,748

     

    Operating profit

     

    98,804

     

     

    88,218

     

     

    236,247

     

     

    269,765

     

    Interest and financing expenses, net

     

    6,466

     

     

    6,987

     

     

    20,575

     

     

    22,740

     

    Other income (expense), net

     

    25,280

     

     

    6,227

     

     

    39,292

     

     

    17,932

     

    Income before income tax expense

     

    117,618

     

     

    87,458

     

     

    254,964

     

     

    264,957

     

    Income tax expense

     

    21,824

     

     

    19,653

     

     

    51,280

     

     

    60,773

     

    Net income

     

    $

    95,794

     

     

    $

    67,805

     

     

    $

    203,684

     

     

    $

    204,184

     

    Earnings per share - basic and diluted

     

    $

    8.77

     

     

    $

    6.06

     

     

    $

    18.52

     

     

    $

    18.26

     

    Cash dividends declared per share

     

    $

    1.90

     

     

    $

    1.90

     

     

    $

    5.70

     

     

    $

    5.40

     

    NEWMARKET CORPORATION AND SUBSIDIARIES

    CONSOLIDATED BALANCE SHEETS

    (In thousands except share amounts, unaudited)

     

     

     

    September 30,

    2020

     

    December 31,

    2019

    ASSETS

     

     

     

     

    Current assets:

     

     

     

     

    Cash and cash equivalents

     

    $

    117,701

     

     

    $

    144,397

     

    Trade and other accounts receivable, less allowance for credit losses

     

     

    328,677

     

     

     

    335,826

     

    Inventories

     

     

    370,104

     

     

     

    365,938

     

    Prepaid expenses and other current assets

     

     

    37,880

     

     

     

    33,237

     

    Total current assets

     

     

    854,362

     

     

     

    879,398

     

    Property, plant, and equipment, net

     

     

    648,685

     

     

     

    635,439

     

    Intangibles (net of amortization) and goodwill

     

     

    130,423

     

     

     

    131,880

     

    Prepaid pension cost

     

     

    145,450

     

     

     

    133,848

     

    Operating lease right-of-use assets

     

     

    58,420

     

     

     

    60,505

     

    Deferred charges and other assets

     

     

    42,782

     

     

     

    44,062

     

    Total assets

     

    $

    1,880,122

     

     

    $

    1,885,132

     

    LIABILITIES AND SHAREHOLDERS' EQUITY

     

     

     

     

    Current liabilities:

     

     

     

     

    Accounts payable

     

    $

    187,572

     

     

    $

    178,773

     

    Accrued expenses

     

     

    74,797

     

     

     

    77,350

     

    Dividends payable

     

     

    18,444

     

     

     

    19,217

     

    Income taxes payable

     

     

    5,362

     

     

     

    10,632

     

    Operating lease liabilities

     

     

    13,270

     

     

     

    14,036

     

    Other current liabilities

     

     

    9,454

     

     

     

    8,887

     

    Total current liabilities

     

     

    308,899

     

     

     

    308,895

     

    Long-term debt

     

     

    608,702

     

     

     

    642,941

     

    Operating lease liabilities - noncurrent

     

     

    45,004

     

     

     

    46,792

     

    Other noncurrent liabilities

     

     

    193,991

     

     

     

    203,406

     

    Total liabilities

     

     

    1,156,596

     

     

     

    1,202,034

     

    Shareholders' equity:

     

     

     

     

    Common stock and paid-in capital (with no par value; issued and outstanding shares - 10,921,389 at September 30, 2020 and 11,188,549 at December 31, 2019)

     

     

    287

     

     

     

    1,965

     

    Accumulated other comprehensive loss

     

     

    (162,898

    )

     

     

    (162,748

    )

    Retained earnings

     

     

    886,137

     

     

     

    843,881

     

    Total shareholders' equity

     

     

    723,526

     

     

     

    683,098

     

    Total liabilities and shareholders' equity

     

    $

    1,880,122

     

     

    $

    1,885,132

     

    NEWMARKET CORPORATION AND SUBSIDIARIES

    SELECTED CONSOLIDATED CASH FLOW DATA

    (In thousands, unaudited)

     

     

     

    Nine Months Ended

    September 30,

     

     

    2020

     

    2019

    Net income

     

    $

    203,684

     

     

    $

    204,184

     

    Depreciation and amortization

     

     

    63,045

     

     

     

    65,500

     

    Cash pension and postretirement contributions

     

     

    (7,717

    )

     

     

    (7,308

    )

    Working capital changes

     

     

    (33,493

    )

     

     

    (35,997

    )

    Deferred income tax expense

     

     

    5,405

     

     

     

    3,982

     

    Capital expenditures

     

     

    (60,133

    )

     

     

    (37,132

    )

    Net repayments under revolving credit facility

     

     

    (34,678

    )

     

     

    (126,262

    )

    Repurchases of common stock

     

     

    (101,434

    )

     

     

    0

     

    Dividends paid

     

     

    (62,667

    )

     

     

    (60,418

    )

    Proceeds from sale of land

     

     

    20,000

     

     

     

    0

     

    Gain on sale of land

     

     

    (16,483

    )

     

     

    0

     

    All other

     

     

    (2,225

    )

     

     

    382

     

    (Decrease) increase in cash and cash equivalents

     

    $

    (26,696

    )

     

    $

    6,931

     

    NEWMARKET CORPORATION AND SUBSIDIARIES

    NON-GAAP FINANCIAL INFORMATION

    (In thousands, unaudited)

     

     

     

    Third Quarter Ended

    September 30,

     

    Nine Months Ended

    September 30,

     

     

    2020

     

    2019

     

    2020

     

    2019

    Net Income

     

    $

    95,794

     

     

    $

    67,805

     

     

    $

    203,684

     

     

    $

    204,184

     

    Add:

     

     

     

     

     

     

     

     

    Interest and financing expenses, net

     

    6,466

     

     

    6,987

     

     

    20,575

     

     

    22,740

     

    Income tax expense

     

    21,824

     

     

    19,653

     

     

    51,280

     

     

    60,773

     

    Depreciation and amortization

     

    20,414

     

     

    21,500

     

     

    61,982

     

     

    64,646

     

    EBITDA

     

    $

    144,498

     

     

    $

    115,945

     

     

    $

    337,521

     

     

    $

    352,343

     




    Business Wire (engl.)
    0 Follower
    Autor folgen

    NewMarket Corporation Reports Results for Third Quarter and First Nine Months of 2020 NewMarket Corporation (NYSE:NEU) Chairman and Chief Executive Officer, Thomas E. Gottwald, released the following earnings report of the Company’s operations for the third quarter and first nine months of 2020. Net income for the third quarter of …