Q2 2021 NewMarket Corp Earnings Call

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Good day, ladies and gentlemen, and welcome to the New market Corp Conference call and webcast to review second quarter 2021 financial results all lines have been placed on a listen only mode. At this time it is my pleasure.

It kind of floor over to your host Brian palliative, Sir the floor is yours.

Thank you David 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.

Other than the factors that could cause actual results to differ materially.

Forward looking statements are contained in our earnings release and in our SEC filings, including our most recent form 10-K.

During this call 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.

Included in last night's, earning release.

Net income was $52 million or $4.75, a share compared to net income of $22.3 million or $2.5 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 400.

$8.7 million for the same period in 2020.

Trillium 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.

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 experienced a lagging recovery, which is reflected in our second quarter.

Financials.

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 2020.

'twenty, 1 we expect to see capital expenditures in the $75 million to $85 million range.

We remained focused on our long term success of our company, including.

Emphasis on satisfying customer needs generating.

Generating solid operating results and promoting the greatest long term value for our shareholders customers and employees.

We believe the fundamentals and 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.

<unk> 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.

Thank you. This concludes today's webcast. We thank you for your participation you may disconnect. Your lines at this time and have a great day.

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