Q2 2024 NewMarket Corp Earnings Call Transcript
Key Points
- Net income for the second quarter of 2024 increased to $112 million or $11.63 a share, compared to $100 million or $10.36 a share for the same period in 2023.
- Petroleum additives operating profit for the quarter rose to $148 million from $132 million in the second quarter of 2023, driven by lower raw material and operating costs.
- Shipments in the petroleum additives segment increased by approximately 1% compared to the same period in 2023.
- The acquisition of American Pacific Corporation (AMPAC) has been completed and is contributing to the specialty materials segment.
- Solid cash flows from operations were generated during the quarter, funding capital expenditures of $15 million and dividends of $24 million.
- Petroleum additives net sales decreased to $670 million from $684 million in the second quarter of last year.
- The specialty materials segment showed substantial variation in quarterly results due to the nature of AMPAC's business.
- The sale of AMPAC finished goods inventory generated no margin during the first half of 2024.
- Net debt-to-EBITDA ratio stands at 1.6, which, while within the target range, indicates a significant level of debt.
- Capital expenditures for 2024 are expected to be in the range of $50 million to $70 million, which could impact cash flow.
Good afternoon, everyone, and welcome to the NewMarket Corporation conference call and webcast to review second-quarter 2024 financial results. (Operator Instructions)
It is now my pleasure to turn the floor over to your host, Bill Skrobak. Sir, the floor is yours.
Thank you, Matthew, 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 will also discuss the non-GAAP financial measures included in our earnings release. The earnings release, which can be found on our website, includes a reconciliation of the non-GAAP financial measures to the comparable GAAP financial measures.
We filed our 10-Q this morning. It contains
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