NewMarket Corporation reports First Quarter 2017 results

• First Quarter Net Income of $63.9 Million, Up 3.2%
• Petroleum Additives First Quarter Sales of $540.0 Million, Up 6.7%
• 9% Increase in Dividend Declared During the First Quarter

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

Net income for the first quarter of 2017 was $63.9 million, or $5.39 per share, compared to net income of $61.9 million, or $5.22 per share, for the first quarter of 2016.

Sales for the petroleum additives segment for the first quarter of 2017 were $540.0 million, up 6.7% versus the same period last year, mainly due to higher shipments, partially offset by changes in selling prices. Petroleum additives operating profit for the first quarter of 2017 was $99.1 million, slightly lower than first quarter operating profit last year of $100.4 million. The decrease was due to unfavorable selling prices and raw material cost variances, partially offset by increased shipments.

Petroleum additives shipments for the first quarter of 2017 were up 13.9% from the same period last year. This increase was primarily due to increases in lubricant additives shipments in Europe and Asia Pacific and fuel additives shipments in Europe and North America.

Our business continues to generate strong cash flows. We paid dividends of $20.7 million, which included a 9 percent increase in our quarterly dividend rate approved by our Board in the first quarter. We also funded capital expenditures of $46.3 million. In January 2017, we issued $250 million of fixed rate long-term debt in a private placement transaction. The proceeds were used to repay amounts outstanding under our revolving credit facility, with the remainder available for financing working capital needs and general corporate purposes.

We are continuing to use our capital to achieve our long-term growth plans. We announced our intent to acquire Aditivos Mexicanos, S.A. de C.V. (“AMSA”) which is a petroleum additives manufacturing, sales and distribution company based in Mexico City, Mexico. We expect to close the transaction in the first half of 2017, pending a regulatory review in 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.

We are pleased with our performance and earnings results in the first quarter of this year. We continue to make decisions to promote the greatest 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 this earnings release. A schedule following the financial statements included in this earnings release is provided reflecting 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.