NewMarket (US:NEU)2023-07-27 19:29Financial Data and Key Metrics Changes - Net income for Q2 2023 was $100 million or $10.36 per share, an increase from $66 million or $6.54 per share in Q2 2022 [3] - Petroleum additives net sales were $684 million, down from $721 million in the same period last year [3] - Operating profit for petroleum additives increased to $132 million from $91 million in Q2 2022, driven by higher selling prices despite lower shipments and increased operating costs [3][4] - The net debt to EBITDA ratio improved to 1.4 times as of June 30, 2023, compared to 2 times at the end of 2022 [5] Business Line Data and Key Metrics Changes - Shipments decreased by 17% compared to previous quarters, with declines in both lubricant additives and fuel additive shipments [11] - All regions contributed to the decrease in lubricant additive shipments, while North America was the main contributor to the decline in fuel additive shipments [11] Market Data and Key Metrics Changes - The company experienced lower shipments due to a general economic slowdown and customer destocking, influenced by supply disruptions and fluctuating oil prices [8] - There was a slight increase in shipments in Q2 compared to Q1 2023 [11] Company Strategy and Development Direction - The company remains focused on long-term success, emphasizing customer satisfaction, solid operating results, and maximizing long-term shareholder value [10][12] - Cost control and margin management are high priorities, especially in the context of ongoing inflationary pressures [4] Management's Comments on Operating Environment and Future Outlook - Management noted challenges from higher operating costs and a general economic slowdown affecting customer behavior [8] - The company generated solid cash flows and improved working capital by $43 million, indicating a stable financial position [9] Other Important Information - Capital expenditures for 2023 are expected to be in the range of $50 million to $60 million, slightly lower than previously anticipated due to project timing [5] - The company paid dividends of $22 million, reflecting a 7% increase in the quarterly dividend rate, and repurchased $14 million of common stock [9] Q&A Session Summary - There was no Q&A session for this event [15]