NewMarket Corp, whose subsidiaries include Afton Chemical, saw its profit climb to the highest in more than two years as sales extended their strong rise.The rise in sales in recent years partly reflected price-increases to pass on higher costs of everything from feedstock to logistics and packaging.Sales struggled to keep pace with rising costs even with those price increases.The dynamic changed in the final three months of last year, when higher sales outpaced the rise in costs for the first time in six quarters.NewMarket’s profit margin rebounded in response.Its net profit of $90.52mn in the fourth quarter of the year rose more than fivefold from $17.21mn during the same period a year earlier to the highest since second-half 2020.Profit increased as an 18pc rise in sales outpaced the 7pc rise in costs..Sales from its fuels and lubricants additives unit accounted for almost all the sales revenue.The slower rise in costs coincided with a drop in global base oils in the fourth quarter from the previous three months. Prices were also up only slightly from levels in the fourth quarter of 2021.Firm sales coincided with strong demand and tight lubricant additives supplies in the US especially throughout most of last year. The tightness eased during the final months of the year.NewMarket’s total shipment volumes fell by almost 3pc in 2022, reflecting that tightness.With sales rising faster than costs, NewMarket’s operating profit margin recovered to 16.1pc in the fourth quarter of the year.The margin rose from 11.9pc during the previous three months to the highest since the first quarter of 2021. It was also closer to more typical levels of around 16.7pc during the four years to 2020.But cost pressures remained..Our efforts to resolve supply chain issues to better meet our customers’ growing needs have shown improvement.NewMarket Chairman and Chief Executive Officer Thomas E Gottwald .At the same time, "We are still challenged by the inflationary environment and rising operating costs that we expect to continue into 2023," he said..US’ Nov base oils output stays low
NewMarket Corp, whose subsidiaries include Afton Chemical, saw its profit climb to the highest in more than two years as sales extended their strong rise.The rise in sales in recent years partly reflected price-increases to pass on higher costs of everything from feedstock to logistics and packaging.Sales struggled to keep pace with rising costs even with those price increases.The dynamic changed in the final three months of last year, when higher sales outpaced the rise in costs for the first time in six quarters.NewMarket’s profit margin rebounded in response.Its net profit of $90.52mn in the fourth quarter of the year rose more than fivefold from $17.21mn during the same period a year earlier to the highest since second-half 2020.Profit increased as an 18pc rise in sales outpaced the 7pc rise in costs..Sales from its fuels and lubricants additives unit accounted for almost all the sales revenue.The slower rise in costs coincided with a drop in global base oils in the fourth quarter from the previous three months. Prices were also up only slightly from levels in the fourth quarter of 2021.Firm sales coincided with strong demand and tight lubricant additives supplies in the US especially throughout most of last year. The tightness eased during the final months of the year.NewMarket’s total shipment volumes fell by almost 3pc in 2022, reflecting that tightness.With sales rising faster than costs, NewMarket’s operating profit margin recovered to 16.1pc in the fourth quarter of the year.The margin rose from 11.9pc during the previous three months to the highest since the first quarter of 2021. It was also closer to more typical levels of around 16.7pc during the four years to 2020.But cost pressures remained..Our efforts to resolve supply chain issues to better meet our customers’ growing needs have shown improvement.NewMarket Chairman and Chief Executive Officer Thomas E Gottwald .At the same time, "We are still challenged by the inflationary environment and rising operating costs that we expect to continue into 2023," he said..US’ Nov base oils output stays low
