NewMarket Corporation Reports Second Quarter and First Half 2017 Results

• Second Quarter Net Income of $62.7 Million versus $64.4 Million in
  2016
• First Half Earnings Per Share of $10.69 versus $10.65 in 2016
• Petroleum Additives First Half Shipments Up 10.1%
• Completed Acquisition of Petroleum Additives Company in Mexico

RICHMOND, Va.–(BUSINESS WIRE)–NewMarket Corporation (NYSE:NEU) Chairman and Chief Executive Officer,
Thomas E. Gottwald, released the following earnings report of the
Company’s operations for the second quarter and first half of 2017.

Net income for the second quarter of 2017 was $62.7 million, or $5.29
per share, compared to net income of $64.4 million, or $5.43 per share,
for the second quarter of 2016. For the first half of 2017, net income
was $126.7 million, or $10.69 per share, compared to net income of
$126.3 million, or $10.65 per share, for the first half of last year.

Sales for the petroleum additives segment for the second quarter of 2017
were $544.2 million, up 5.4% versus the same period last year, mainly
due to higher shipments, partially offset by changes in selling prices.
Petroleum additives operating profit for the second quarter of 2017 was
$94.9 million, lower than second quarter operating profit last year of
$102.5 million. The decrease was due to lower selling prices and
increasing raw material costs, partially offset by increased shipments.
Shipments between quarterly periods were up 6.4% from the same period
last year with increases in both lubricant additives and fuel additives
shipments. Asia Pacific and Europe were the main regions contributing to
the increase in lubricant additives shipments, and Europe was the
primary driver of the increase in fuel additives shipments.

Petroleum additives sales for the first half of the year were $1.1
billion compared to sales in the first half of last year of $1.0
billion, or an increase of 6.1%. This increase was due mainly to higher
shipments partially offset by changes in selling prices. Petroleum
additives operating profit for the first half of the year was $194.0
million compared to $202.9 million for the first half of 2016, or a
decrease of 4.4%. The decrease was due to lower selling prices and
increasing raw material costs, partially offset by increased shipments.
Shipments increased 10.1% between periods with increases in both
lubricant additives and fuel additives shipments. The regional drivers
for those increases were consistent with the drivers in the second
quarter discussed above.

The effective income tax rate for the second quarter of 2017 was 26.5%,
down from the rate of 30.1% in the same period last year. The effective
rate for the first half of 2017 was 27.0%, down from the rate in 2016 of
30.2%. The rates in both periods were lower primarily due to increased
earnings in foreign jurisdictions with lower tax rates.

We continued to generate solid operating cash flows in the first half of
2017. During the period we paid dividends of $41.5 million and funded
capital expenditures of $85.2 million. We also issued $250 million of
fixed rate long-term debt in a private placement transaction, and repaid
$129.6 million under our revolving credit facility. We are continuing to
use our capital to achieve our long-term growth plans. In early July, we
completed our previously announced acquisition of Aditivos Mexicanos,
S.A. de C.V., a petroleum additives manufacturing, sales and
distribution company based in Mexico City, Mexico. In addition,
construction continues on phase two of our manufacturing facility in
Singapore which is expected to be completed in the second half of 2017,
and we are continuing to invest in research and development in order to
meet our customers’ ever-changing business needs.

Our petroleum additives business is performing consistent with our
expectations. We continue to make decisions to promote long-term value
for our shareholders and customers, and we remain focused on our
long-term objectives. We believe the fundamentals of the industry as a
whole remain unchanged, with the petroleum additives market growing at
1% to 2% annually for the foreseeable future. We continue to believe
that we will exceed that growth rate over the long term.

Sincerely,

Thomas E. Gottwald

The Company has included the non-GAAP financial measure EBITDA in the
schedules to this earnings release. A schedule following the financial
statements provides the calculation of EBITDA, defined as income from
continuing operations before the deduction of interest and financing
expenses, income taxes, depreciation and amortization. The Company
believes that even though this item is not required by or presented in
accordance with United States generally accepted accounting principles
(GAAP), this additional measure enhances understanding of the Company’s
performance and period to period comparability. The Company believes
that this item should not be considered an alternative to net income
determined under GAAP.

As a reminder, a conference call and Internet webcast is scheduled for
3:00 p.m. EDT on Thursday, August 3, 2017 to review second quarter 2017
financial results. You can access the conference call live by dialing
1-877-407-9210 (domestic) or 1-201-689-8049 (international) and
requesting the NewMarket conference call. To avoid delays, callers
should dial in five minutes early. A teleconference replay of the call
will be available until August 10, 2017 at 11:59 p.m. EDT by dialing
1-877-481-4010 (domestic) or 1-919-882-2331 (international). The replay
ID number is 15996. The call will also be broadcast via the Internet and
can be accessed through the Company’s website at www.NewMarket.com
or www.investorcalendar.com.
A webcast replay will be available for 30 days.

NewMarket Corporation, through its subsidiaries Afton Chemical
Corporation and Ethyl Corporation, develops, manufactures, blends, and
delivers chemical additives that enhance the performance of petroleum
products. From custom-formulated additive packages to market-general
additives, the NewMarket family of companies provides the world with the
technology to make engines run smoother, machines last longer, and fuels
burn cleaner.

Some of the information contained in this press release constitutes
forward-looking statements within the meaning of the Private Securities
Litigation Reform Act of 1995. Although NewMarket’s management believes
its expectations are based on reasonable assumptions within the bounds
of its knowledge of its business and operations, there can be no
assurance that actual results will not differ materially from
expectations.

Factors that could cause actual results to differ materially from
expectations include, but are not limited to, the availability of raw
materials and distribution systems; disruptions at manufacturing
facilities, including single-sourced facilities; the ability to respond
effectively to technological changes in our industry; failure to protect
our intellectual property rights; failure to attract and retain a
highly-qualified workforce; hazards common to chemical businesses;
competition from other manufacturers; sudden or sharp raw material price
increases; the gain or loss of significant customers; the occurrence or
threat of extraordinary events, including natural disasters and
terrorist attacks; risks related to operating outside of the United
States; the impact of fluctuations in foreign exchange rates; an
information technology system failure or security breach; political,
economic, and regulatory factors concerning our products; future
governmental regulation; resolution of environmental liabilities or
legal proceedings; our inability to realize expected benefits from
investment in our infrastructure or from recent or future acquisitions
or our inability to successfully integrate recent or future acquisitions
into our business; and other factors detailed from time to time in the
reports that NewMarket files with the Securities and Exchange
Commission, including the risk factors in Item 1A. “Risk Factors” of our
2016 Annual Report on Form 10-K, which is available to shareholders upon
request.

You should keep in mind that any forward-looking statement made by
NewMarket in the foregoing discussion speaks only as of the date on
which such forward-looking statement is made. New risks and
uncertainties arise from time to time, and it is impossible for us to
predict these events or how they may affect the Company. We have no duty
to, and do not intend to, update or revise the forward-looking
statements in this discussion after the date hereof, except as may be
required by law. In light of these risks and uncertainties, you should
keep in mind that the events described in any forward-looking statement
made in this discussion, or elsewhere, might not occur.

Contacts

NewMarket Corporation
Brian D. Paliotti
Investor
Relations
Phone: 804.788.5555
Fax: 804.788.5688
Email:
[email protected]