Please ensure Javascript is enabled for purposes of website accessibility

Newmarket Corp (NEU) Q2 2021 Earnings Call Transcript

By Motley Fool Transcribers – Jul 30, 2021 at 1:32AM

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

NEU earnings call for the period ending June 30, 2021.

Logo of jester cap with thought bubble.

Image source: The Motley Fool.

Newmarket Corp (NEU -0.92%)
Q2 2021 Earnings Call
Jul 29, 2021, 3:00 p.m. ET


  • Prepared Remarks
  • Questions and Answers
  • Call Participants

Prepared Remarks:


Good day, ladies and gentlemen, and welcome to the NewMarket Corporation conference call and webcast to review second quarter 2021 financial results. [Operator Instructions]

At this time, it is my pleasure to turn the floor over to your host, Brian Paliotti. Sir, the floor is yours.

10 stocks we like better than NewMarket
When our award-winning analyst team has a stock tip, it can pay to listen. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market.* 

They just revealed what they believe are the ten best stocks for investors to buy right now... and NewMarket wasn't one of them! That's right -- they think these 10 stocks are even better buys.

See the 10 stocks

*Stock Advisor returns as of June 7, 2021

Brian Paliotti -- Vice President And Chief Financial Officer

Thank you, Dagma, and thanks to everyone for joining me this afternoon. As a reminder, some of the statements made during this conference call may be forward-looking. Relevant factors that could cause actual results to differ materially from those forward-looking statements are contained in our earnings release and in our SEC filings, including our most recent Form 10-K. During this call, I may also discuss the non-GAAP financial measure included in our earnings release. The earnings release, which can be found on our website, includes a reconciliation of the non-GAAP financial measure to the comparable GAAP financial measure. We filed our 10-Q this morning. It contains significantly more details on the operations and performance of our company. Please take time to review it. I will also be referring to the data that was included in last night's earnings release. Net income was $52 million or $4.75 a share compared to net income of $22.3 million or $2.05 a share for the second quarter of last year.

Petroleum additives net sales for the second quarter of 2021 were $586.6 million compared to $408.7 million for the same period in 2020. Petroleum additives operating profit for the quarter was $74.2 million, higher than the second quarter operating profit of last year of $33.1 million. The profit increase was due to higher shipments, lower conversion costs and favorable changes in selling price, partially offset by higher raw materials. Shipments increased 41.1% between the periods, driven by increases in all world regions and in both our lubricant additives and fuel additives business. Q2 shipments versus Q1 shipments were very strong, increasing by 3%. Petroleum additives operating margin for the second quarter of 2021 was 12.7%, significantly lower than our historical average. During periods of raw material increases, we typically experience a lag in recovery, which is reflected in our second quarter financials. Margin management will continue to be a priority for us in 2021.

During the quarter, we funded capital expenditures of $24 million, paid dividends of $21 million as we continue to operate with very low leverage with net debt-to-EBITDA ending the quarter at 1 times. For 2021, we expect to see capital expenditures in the $75 million to $85 million range. We remain 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. We believe the fundamentals in 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 will continue to be beneficial for all of our stakeholders.

Thank you all for joining me on the call today. We appreciate your support, and we would like to say thank you to our employees, customers and shareholders for all that you do as we continue to see a bright future for our company. Dagma, that concludes our planned comments. We are available for questions via email or by phone. So please feel free to contact us directly. Again, thank you all, and we look forward to talking to you again next quarter.


[Operator Closing Remarks]

Questions and Answers:

Duration: 4 minutes

Call participants:

Brian Paliotti -- Vice President And Chief Financial Officer

More NEU analysis

All earnings call transcripts

AlphaStreet Logo

This article is a transcript of this conference call produced for The Motley Fool. While we strive for our Foolish Best, there may be errors, omissions, or inaccuracies in this transcript. As with all our articles, The Motley Fool does not assume any responsibility for your use of this content, and we strongly encourage you to do your own research, including listening to the call yourself and reading the company's SEC filings. Please see our Terms and Conditions for additional details, including our Obligatory Capitalized Disclaimers of Liability.

The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.

Premium Investing Services

Invest better with The Motley Fool. Get stock recommendations, portfolio guidance, and more from The Motley Fool's premium services.