Newmarket Corporation ( (NEU) ) has released its Q4 earnings. Here is a breakdown of the information Newmarket Corporation presented to its investors.
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NewMarket Corporation is a holding company that operates through its subsidiaries, Afton Chemical Corporation and Ethyl Corporation, focusing on the development, manufacturing, and delivery of chemical additives for petroleum products. Additionally, it owns American Pacific Corporation, a producer of specialty materials used in aerospace and defense.
NewMarket Corporation reported a strong financial performance for the fourth quarter and full year of 2024, with a net income of $462 million and earnings per share of $48.22. The company highlighted the successful integration of American Pacific Corporation (AMPAC), which exceeded pre-acquisition sales expectations.
Key financial metrics for 2024 include a petroleum additives operating profit of $592 million, up from $514 million in 2023, driven by efficiency improvements and lower raw material costs. Despite a slight decrease in petroleum additives sales from $2.7 billion in 2023 to $2.6 billion in 2024, operating profit increased due to cost management.
The AMPAC acquisition played a significant role in NewMarket’s 2024 performance, with specialty materials sales reaching $141.2 million. The company also made progress in reducing its debt by $373 million since acquiring AMPAC.
Looking ahead, NewMarket Corporation remains optimistic about the continued strength of its petroleum additives and specialty materials segments, with plans to further invest in technology and operational efficiencies to enhance shareholder value.
