(RTTNews) - Thursday, NewMarket Corp. (NEU: News ), a chemical additives manufacturer, reported a significant rise in third quarter profit, backed by a lower costs and higher operating profit, despite a decline in revenues. Both, earnings and revenue for the quarter came in ahead of the analysts estimates.

The Richmond, Virginia-based company reported third quarter net income of $56.7 million or $3.72 per share, up from from $16.5 million or $1.07 per share in the year ago quarter.

Net income the quarter included a loss of $2.4 million or $0.16 per share from recording at fair value an interest rate swap agreement related to financing on Foundry Park.

Excluding loss on interest rate swap, net income was $59.1 million or $3.88 per share for the quarter. On average, four analysts polled by Thomson Reuters expected the company to earn $2.15 per share for the quarter. Analysts' estimates typically exclude special items.

Total sales for the quarter were $417.8 million, down from $440.60 million in the previous year quarter. Analysts expected the company to report revenue of of $396.45 million for the quarter.

Costs for the quarter declined to $274.87 million from $367.03 million in the previous year quarter. Operating profit was $93.75 million, up from $25.63 million a year ago.
Selling, general, and administrative expenses for the quarter declined to $27.62 million from $28.48 million in the same quarter a year ago. Research, development and testing expenses increased to $21.60 million from $19.47 million in the prior year quarter.

For the nine-month period, net income was $116.0 million or $7.61 per share, up from $53.9 million or $3.48 per share in the year ago period. Excluding loss on interest rate swap, net income was $125.8 million or $8.25 per share.

Total sales for the nine-months declined to $1.12 billion from $1.25 billion in the comparable period last year.

The company also declared a quarterly dividend of $0.375 per share, payable January 1, 2010 to shareholders of record at the close of business on December 15, 2009. This represents an increase of $0.125 per share over the previously paid dividend.

NEU closed Thursday's regular trading at $97.01, up $2.75 or 2.92%, on a volume of 0.28 million shares on the NYSE. In the after hours, the stock is up $3.50 or $3.61%, trading at $100.51.

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by RTT Staff Writer

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