Thursday, specialty chemicals company NewMarket Corporation (NEU) reported an increase in fourth quarter earnings, which topped analysts' estimates, helped by higher shipments of petroleum additives.
Net income for the quarter surged to $46.3 million from $19.4 million in the corresponding period last year. Earnings per share surged to $3.03 from $1.27 per share in the same period last year, and came in above the $2.71 per share projected by four analysts polled by Thomson Reuters. Analysts' estimates typically exclude special items.
Financial results for the most recent quarter included a benefit to net income of $2.8 million or $0.18 per share, related to unrealized gain on interest rate swap agreement. Excluding items, net income for the fourth quarter were $43.5 million, or $2.85 per share
Quarterly sales increased to $404.2 million from $368.6 million in the year-ago quarter and topped the $391.72 million projected by three Street analysts.
Petroleum additives volumes shipped for the fourth quarter grew by 17% over the same period last year, reflecting the return in demand from the significant drop in shipments during the last two months of 2008. Petroleum additives segment operating profit surged to $65.8 million from $32.5 million in the year-ago quarter.
For the twelve-month period, net income increased to $162.3 million or $10.65 per share from $73.2 million or $4.75 per share last year. Total net sales declined to $1.53 billion from $1.62 billion last year. Street analysts expected the company to report earnings of $11.07 per share on sales of $1.52 billion for 2009.
The company said net debt decreased to $98.3 million at year end 2009, from $215.4 million at December 31, 2008.
Newmarket said the project to construct a multi-story corporate headquarters for MeadWestvaco was completed near the end of this fourth quarter, and the receipt of rental income payments has begun.
Looking ahead, the company said, "We are entering 2010 cautiously optimistic that our business has returned to more historical levels of demand. We expect to begin manufacturing and blending in our Singapore facility this year, which will greatly improve our service levels in that very important part of the world. Our plants are running full, we continue to spend heavily in R&D and expect another successful year for our petroleum additives business. "
NEU declined $5.13 or 4.61% and closed Thursday's regular trading at $106.06. After hours, NEU rose $0.14 or 0.13% and traded at $106.20.
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