NewMarket Corporation (NYSE: NEU) President and Chief Executive Officer, Thomas E. Gottwald, released the following earnings report of the Company’s operations for the year and fourth quarter 2011.
Net income for the year 2011 increased to $206.9 million, or $15.09 per share, compared to net income of $177.1 million, or $12.09 per share, for the year 2010. For the fourth quarter of this year, net income was $33.7 million, or $2.51 per share, compared to net income of $49.4 million, or $3.47 per share for the same period last year.
The earnings for the current year and prior year periods include the impact from an interest rate swap while the current year also includes a gain on a legal settlement. The following Summary of Earnings reflects net income including these two items, as well as earnings excluding them and the related per share amounts.
|Summary of Earnings|
|(In millions, except per-share amounts)|
|Fourth Quarter Ended||Year Ended|
|December 31||December 31|
|(Gain) on legal settlement, net||-||-||(23.9||)||-|
|Loss (gain) on interest rate swap agreement||0.8||(4.4||)||10.7||6.3|
|Income excluding the effects of the legal settlement and interest rate swap||$||34.5||$||45.0||$||193.7||$||183.4|
|Diluted Earnings Per Share:|
|(Gain) on legal settlement, net||-||-||(1.74||)||-|
|Loss (gain) on interest rate swap agreement||0.06||(0.31||)||0.78||0.43|
|Income excluding the effects of the legal settlement and interest rate swap||$||2.57||$||3.16||$||14.13||$||12.52|
Petroleum additives operations had another strong performance this year with operating profit of $348.3 million including the benefit of a net gain of $38.7 million from a legal settlement. Excluding the benefit of the legal settlement, petroleum additives operating profit for the year 2011 increased to $309.6 million, an improvement of approximately 4 percent over 2010 operating profit of $299.1 million. The results reflect improved earnings in both the lubricant additives and fuel additives product lines. Sales of petroleum additives for the year increased to $2.1 billion, up 20 percent over sales last year of $1.8 billion including the benefit of a 6 percent increase in shipments. This strong performance of petroleum additives in 2011 includes operating profit improvement in each major geographic region in which we operate. This success is driven by our strong commitment to research and development enabling us to supply our customers with the differentiating top quality products, marketing solutions and technical support that enhance their position in the marketplace.