NewMarket (NEU) - 2022 Q2 - Earnings Call Transcript

Financial Data and Key Metrics Changes - Net income for Q2 2022 was $66 million or$6.54 per share, compared to $52 million or$4.75 per share in Q2 2021, reflecting a significant increase [5] - Petroleum additives net sales reached a record $721 million in Q2 2022, up from$586.6 million in the same period last year [6] - Operating profit for petroleum additives was $91.2 million in Q2 2022, higher than$74.2 million in Q2 2021 [6] - Operating profit margin for petroleum additives was 12.7%, which is significantly lower than historical averages [8] Business Line Data and Key Metrics Changes - Shipments increased by 2.6% between quarterly periods, with lubricant additive shipments rising, while fuel additive shipments decreased [7] - All regions except Latin America contributed to the increase in lubricant additive shipments, while all regions except North America contributed to the decrease in fuel additive shipments [7] Market Data and Key Metrics Changes - The company faced challenges from the global supply network and transportation industry, impacting operational costs [9] Company Strategy and Development Direction - The company remains focused on long-term success, emphasizing customer satisfaction, solid operating results, and long-term value for stakeholders [12] - Margin management is a priority for 2022 due to ongoing upward pressure on operating costs [8] Management Comments on Operating Environment and Future Outlook - Management acknowledged the inflationary environment affecting costs of goods sold inputs and expressed commitment to returning margins to historical levels in the mid to high teens [9] - Capital expenditures for 2022 are expected to be in the range of $55 million to$60 million, slightly below previous estimates due to operational timing [11] Other Important Information - The company funded capital expenditures of $15 million, paid dividends of$21 million, and repurchased $55 million of stock during the quarter [10] - The net debt to EBITDA ratio at the end of the quarter was 2.3 times, slightly above the normal range of 1 to 2 times [10] Q&A Session Summary Question: None provided in the transcript - The conference call concluded without any recorded questions or answers [14]