NewMarket Corporation Reports Fourth Quarter and Full Year 2024 Results
NewMarket Corporation has released its financial results for the fourth quarter and full year of 2024. The company, which operates through its subsidiaries Afton Chemical Corporation, Ethyl Corporation, and American Pacific Corporation (AMPAC), reported significant financial and operational achievements during the period.
Financial Highlights
NewMarket Corporation reported a net income of $110.7 million for the fourth quarter of 2024, translating to earnings per share (EPS) of $11.56. This marks an increase from the same period last year, where net income was $80.4 million, or $8.38 per share. For the full year 2024, net income was $462.4 million, or $48.22 per share, compared to $388.9 million, or $40.44 per share, in 2023.
Petroleum additives sales for the fourth quarter were $626.1 million, slightly down from $642.0 million in the same period of 2023. However, the operating profit for this segment increased to $135.7 million from $110.4 million, primarily due to lower operating costs. For the full year, petroleum additives sales were $2.6 billion, with an operating profit of $591.9 million, up from $514.4 million in 2023.
Business and Operational Highlights
The company completed the acquisition of AMPAC on January 16, 2024. The specialty materials segment, which includes AMPAC, reported sales of $27.1 million for the fourth quarter and $141.2 million for the full year, surpassing pre-acquisition expectations. The operating profit for this segment was $1.5 million for the fourth quarter and $17.5 million for the full year.
NewMarket's operational efficiency initiatives have been a key driver of its financial performance. The company has focused on reducing operating costs while continuing to invest in technology solutions for its customers. This strategy has helped offset the impact of lower shipments and selling prices.
Strategic Initiatives and Corporate Developments
NewMarket has made significant strides in debt reduction, with net payments of $373 million on its revolving credit facility since the AMPAC acquisition. The company's Net Debt to EBITDA ratio stands at 1.2, below its target operating range of 1.5 to 2.0. Additionally, the company paid dividends of $95.9 million, funded capital expenditures of $57.3 million, and repurchased common stock for $31.9 million during 2024.
Management's Perspective
Thomas E. Gottwald, Chairman and CEO of NewMarket Corporation, expressed satisfaction with the company's performance in 2024. He highlighted the strong results from the petroleum additives business and the successful integration of AMPAC. Gottwald emphasized the company's commitment to operational efficiency, technology investments, and long-term value creation for shareholders and customers.
Future Outlook
Looking ahead to 2025, NewMarket expects continued strength in both its petroleum additives and specialty materials segments. The company plans to further invest in technology, enhance operational efficiency, optimize inventory levels, and improve portfolio profitability. Management remains focused on long-term objectives and believes that the company's strategic approach will continue to benefit all stakeholders.
SEC Filing: NEWMARKET CORP [ NEU ] - 8-K - Feb. 03, 2025