NewMarket Corporation Reports Unaudited Consolidated Earnings Results for the First Quarter Ended March 31, 2018; Provides CapEx and Tax Rate Guidance for the Full Year 2018
April 25, 2018 at 05:10 pm EDT
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NewMarket Corporation reported unaudited consolidated earnings results for the first quarter ended March 31, 2018. For the quarter, the company reported net sales were $589,245,000 compared to $542,818,000 a year ago. Operating profit was $81,575,000 compared to $90,232,000 a year ago. Income before income tax expense was $71,311,000 compared to $88,233,000 a year ago. Net income was $60,565,000 compared to $63,937,000 a year ago. Basic and diluted earnings per share were $5.14 compared to $5.39 a year ago. Capital expenditures were $22,797,000 compared to $46,346,000 a year ago. EBITDA was $103,854,000 compared to $105,839,000 a year ago. The increase in net sales is across all regions with most -- with almost half of the increase from European region with the other regions contributing about equal amounts of the remaining increase.
For 2018, the company expects to see a significant decrease in its level of capital expenditure versus 2017, reflecting the completion of Singapore plant. CapEx will be in the $100 million to $125 million range, company's lowest level since 2014. For the full year, the company expects to have an effective tax rate in the 24% range.
NewMarket Corporation is a holding company operating through its subsidiaries, Afton Chemical Corporation (Afton), Ethyl Corporation (Ethyl), and American Pacific Corporation (AMPAC). The Afton and Ethyl companies develop, manufacture, blend, and deliver chemical additives that enhance the performance of petroleum products. AMPAC is a manufacturer of specialty chemicals used in solid rocket motors for the aerospace and defense industries. Its Petroleum Additives segment manufactures chemical components that are selected to perform one or more specific functions and combine those chemicals with other chemicals or components to form additive packages for use in specified end-user applications. Ethyl provides contracted manufacturing and related services to Afton and to third parties and is a marketer of antiknock compounds in North America. Its subsidiaries, NewMarket Services Corp, provide various administrative services; and NewMarket Development Corp, manages the real property.
NewMarket Corporation Reports Unaudited Consolidated Earnings Results for the First Quarter Ended March 31, 2018; Provides CapEx and Tax Rate Guidance for the Full Year 2018