Newmarket Corp (NEU) 10-K Annual Report February 2016

Richmond, VA, February 1, 2016 – NewMarket Corporation (NYSE:NEU) Chairman and Chief Executive Officer, Thomas E. Gottwald, released the following earnings report of the Company’s operations for the fourth quarter and full year 2015.

Net income for the fourth quarter of 2015 was $53.9 million, or $4.50 per share, compared to net income of $52.1 million, or $4.17 per share, for the fourth quarter of 2014. Net income for 2015 was $238.6 million, or $19.45 per share, compared to net income of $233.3 million, or $18.38 per share, for 2014. Net income for all periods included the impact of valuing an interest rate swap at fair value. Excluding this item, fourth quarter 2015 earnings were $53.2 million, or $4.44 per share, compared to $53.7 million, or $4.30 per share, last year. On the same basis, earnings for the year 2015 were $240.6 million, or $19.61 per share, compared to $237.6 million, or $18.72 per share, last year (see Summary of Earnings table below).

Sales for the petroleum additives segment for the fourth quarter of 2015 were $476.7 million, down 13.0% versus the same period last year, due to lower shipments, foreign currency exchange and changes in selling prices and mix. Petroleum additives operating profit for the fourth quarter of 2015 was $75.3 million, an 11.9% decrease over fourth quarter operating profit last year of $85.5 million. The decrease was due to lower sales volume, changes in foreign currency exchange and increases in research and development investments, partially offset by lower raw material costs.

For the year, petroleum additives sales were $2,125 million compared to sales in 2014 of $2,325 million, a decrease of 8.6%. This decrease was primarily due to foreign currency exchange, changes in selling prices and mix. Operating profit for petroleum additives for 2015 declined 2.6% to $374.9 million, compared to $385.1 million for 2014. Changes in foreign currency overshadowed strong operating performance in the Americas and, to a lesser extent, the Asia Pacific region. The decrease in operating profit was also due to increases in research and development investments and lower sales volume, partially offset by lower raw material costs.

Petroleum additives shipments for the fourth quarter of 2015 were down 4.3% from the same period last year. This decline, which represents the lowest level of quarterly shipments in three years, was primarily due to decreases in lubricant and fuel additives shipments in North America. For the year, shipments declined 1.2% versus 2014, with increases in fuel additives shipments, primarily in North America, offset by declines in lubricant additives in all regions except Latin America. Shipments were below our expectations for both the quarter and full year periods, as demand for lubricant products trended lower in the face of a continued general weakness in the global economy. In addition, we believe the rapid decline in crude oil prices in the fourth quarter may have led some customers to reduce stock levels in anticipation of lower base oil prices.

The effective income tax rate for the fourth quarter of 2015 was 20.3%, down from the rate of 28.8% in the same period last year. The effective rate for 2015 was 29.6%, down slightly from the rate in 2014 of 31.2%. The rate in the fourth quarter of 2015 was lower primarily due to decreases in tax rates for certain of our foreign subsidiaries and an increase in tax benefits associated with our research and development activities in the US and Europe. The research and development tax credit in the US was passed during the fourth quarter of 2015, retroactive to the beginning of the year.

Our business continues to generate strong cash flows. During the year, we paid dividends of $70.8 million, funded capital expenditures of $126.5 million and repurchased 501,261 shares of our common stock for a total of $197.9 million, including 44,778 shares in the fourth quarter. At the end of 2015, we had $482.8 million remaining on our stock repurchase authorization.

Construction continues on our new manufacturing facility in Singapore. We expect commercial production to begin by mid-year 2016. In August, we announced the second phase of construction which will include additional component production units. Phase two will more than double our investment in the Singapore facility and is scheduled to be completed in 2017.

Our stated goal is to provide a 10% return per year for our shareholders over any five year period (defined by EPS growth plus dividends). We may not necessarily achieve a 10% return each year, and 2015 was such a year. Unfavorable exchange rates and softer industry demand have worked against us at a time when we have a great need to invest in developing products to meet new, upcoming specifications and pursue specific growth opportunities. Our increased investments in 2015, evidenced by our more than $125 million of capital expenditures and 14% higher spending in research and development, reinforces that we

The following information was filed by Newmarket Corp (NEU) on Monday, February 1, 2016 as an 8K 2.02 statement, which is an earnings press release pertaining to results of operations and financial condition. It may be helpful to assess the quality of management by comparing the information in the press release to the information in the accompanying 10-K Annual Report statement of earnings and operation as management may choose to highlight particular information in the press release.

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Financial Statements, Disclosures and Schedules

Inside this 10-K Annual Report

Material Contracts, Statements, Certifications & more

Newmarket Corp provided additional information to their SEC Filing as exhibits

Exhibit 10.13: Material Contract

Exhibit 10.14: Material Contract

Exhibit 12: Statement Regarding Calculation Of Ratios

Exhibit 21: Subsidaries Of The Registrant

Exhibit 23: Consents Of Experts And Counsel

Exhibit 31.A: Section 302 Ceo Certification

Exhibit 31.B: Section 302 Cfo Certification

Exhibit 32.A: Section 906 Ceo Certification

Exhibit 32.B: Section 906 Cfo Certification

Ticker: NEU
CIK: 1282637
Form Type: 10-K Annual Report
Accession Number: 0001282637-16-000028
Submitted to the SEC: Fri Feb 12 2016 11:26:17 AM EST
Accepted by the SEC: Fri Feb 12 2016
Period: Thursday, December 31, 2015
Industry: Industrial Organic Chemicals