NewMarket Corporation Reports Second Quarter And First Half 2013 Results

NewMarket Corporation (NYSE:NEU) President and Chief Executive Officer, Thomas E. Gottwald, released the following earnings report of the Company’s operations for the second quarter and first half of 2013.

Net income for the second quarter of 2013 improved to $64.0 million, or $4.81 per share, compared to net income of $55.3 million, or $4.12 per share for the second quarter of 2012. For the first half of 2013, net income increased to $131.8 million, or $9.88 per share, compared to net income of $121.8 million, or $9.09 per share, for the first half of last year. Net income for 2013 reflects the benefit of a lower effective tax rate due mainly to the passage of the R&D tax credit extension for 2012 and 2013 in January of this year.

Net income for all periods includes the results of discontinued operations and certain special items detailed in the Summary of Earnings below. The discontinued operations represent the operations of an office building owned by our wholly owned subsidiary, Foundry Park I, which was sold on July 2, 2013. We expect to recognize a gain of approximately $35.8 million ($21.9 million after tax) in the third quarter of 2013 related to this transaction. Please see our Form 8-K filed on July 8, 2013 for more details on this transaction. All periods also include the impact of valuing an interest rate swap at fair value and the 2012 periods include a loss on early extinguishment of debt.
   
Summary of Earnings
(In millions, except per-share amounts)
Second Quarter Ended     Six Months Ended
June 30 June 30
2013     2012 2013     2012
Net Income:
Net income $ 64.0 $ 55.3 $ 131.8 $ 121.8
Loss (income) from discontinued operation 0.4 (0.2 ) (0.5 ) (0.6 )
(Gain) loss on interest rate swap agreement (3.1 ) 3.5 (3.5 ) 2.4
Loss on early extinguishment of debt   -     4.1     -     6.1  
Income excluding discontinued operations and special items $ 61.3   $ 62.7   $ 127.8   $ 129.7  
 
Diluted Earnings Per Share:
Net income $ 4.81 $ 4.12 $ 9.88 $ 9.09
Loss (income) from discontinued operation 0.03 (0.01 ) (0.04 ) (0.05 )
(Gain) loss on interest rate swap agreement (0.23 ) 0.26 (0.26 ) 0.18
Loss on early extinguishment of debt $ -     0.31     -     0.45  
Income excluding discontinued operations and special items   4.61   $ 4.68   $ 9.58   $ 9.67  
 

For the second quarter of this year, earnings excluding discontinued operations and special items amounted to $61.3 million, or $4.61 per share, compared to earnings on the same basis for the second quarter of last year of $62.7 million, or $4.68 per share. On the same basis, earnings for the first half of this year were $127.8 million, or $9.58 per share, while earnings for the first half of last year amounted to $129.7 million, or $9.67 per share.

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