Greetings, ladies and gentlemen, and welcome to the NewMarket Corporation Second Quarter 2008 Financial Results Conference Call. At this time, all participants are in a listen-only mode. A brief question-and-answer session will follow the formal presentation. (Operator Instructions). As a reminder, this conference is being recorded. It is now my pleasure to introduce your host, Mr. David Fiorenza, Vice President, Treasurer and Principal Financial Officer for NewMarket Corporation. Thank you Mr. Fiorenza, you may begin.

Thank you, and good morning. Thanks for joining us to discuss the second quarter performance. With me today is Teddy Gottwald, our CEO. I have a few planned comments after which we’ll open the lines for any questions. As a reminder, some of the comments we will make today are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. We believe we base our statements on reasonable expectations and assumptions within the balance of what we know about our business and operations. However, we offer no assurance that actual results will not differ materially from our expectations, due to uncertainties and factors that are difficult to predict and beyond our control. A full discussion of these factors can be found in our 2007 10-K. We filed our second quarter 10-Q last night also. As you saw, we released earnings yesterday. Income from continuing operations for the quarter was $17.6 million or $1.13 a share, compared with $17.4 million or $1 a share for the second quarter of last year. Last year we exited the TEL business outside of North America, and classified that former operation as discontinued business. There was no affect from that business in our second quarter results of this year, although we made $13.5 million in the second quarter of 2007 when we sold our participation in that business. Total income for last year’s second quarter was $30.9 million or $1.78 a share. Turing now to our segment performance. Petroleum additive net sales in the second quarter of $421 million were up $83 million or about 24% from the second quarter of last year. Shipments were up 15% mainly in the lubricant additive area. The other components that contributed to the higher revenue figure were higher selling prices, customer mix, and a…

Thank you. Ladies and gentlemen, we will now be conducting a question-and-answer session. (Operator Instructions). Thank you. Our first question comes from the line of Mr. Robert Felice with Gabelli & Company. Please proceed with your question. Robert Felice - Gabelli & Company: Hi, guys. Just a couple of quick questions. First, what was the magnitude of the price cost gap during the quarter?

It’s in the 200-250 basis point range. Robert Felice - Gabelli & Company: Okay. And then I guess what is the cumulative amount of pricing you have announced year-to-date, and how much of that have you realized?

We don’t announce price increases as a sense of the stated price increase. But we have announced several times already this year, three times as a matter of fact, and we’re having good success with it. Robert Felice - Gabelli & Company: Okay. Well, you seemed clear in press release that there are no fundamental changes to the industry and the margin compression during the quarter is really a timing issue? And sort to that end how quickly do you expect your margins to snap back here?

This is Teddy. I think we’ll see margins improve in the third quarter, barring any unanticipated further increases in raw materials. We have been out in the marketplace. We have agreement on a -- a lot of the increases and they are rolling through now. Robert Felice - Gabelli & Company: Do you think those margins will get back to levels commensurate with third quarter of ‘07 or just improve sequentially?

I think they will improve sequentially and it's certainly our intent by the end of the year to be at that same kind of third quarter of '07 margin rate. Robert Felice - Gabelli & Company: Historically your fourth quarter has been weaker than your third would you expect that to persist this year and fourth quarter of '08 to be on par with fourth quarter of '08 or to actually seeing improvement in margins continually through the year of such that fourth quarter or that should be up around that 10% level?

It's our objective to get there in the fourth quarter. It's hard to say, the rate of increase of raw materials that we have seen this year has just been unprecedented. So it's kind of hard to predict out two quarters right now and what cost it going to do, and if the cost continue to move we’ll continue to be in the marketplace recovering those costs. From a volume standpoint, fourth quarter tends to be lighter than the middle couple of quarter and we know we have no reason to expect anything different this year. Robert Felice - Gabelli & Company: If we were to assume that the base oil prices don’t move, do you have enough pricing in place right now to recover all of the cost, or do you have to go out with additional increases?

We believe the actions that we have in place now would get us there. Robert Felice - Gabelli & Company: Okay, and then I guess lastly, your volume for the first half had been really quite strong, what's your full year expectation for volumes?

As you pointed out, the first half compared to the first half of last year we were up about 15%. It's very strong, we’re not going to finish at 15% above because sequentially we’re up 5%. So, we’re going to have strong volume, I don’t have an exact number for you. The demand continues there, our customers are doing, and we’re doing well. Robert Felice - Gabelli & Company: Well I guess your other publicly traded competitor mentioned on their call yesterday that they are revisiting their analysis of the industries long-term growth rate and perhaps their for some fundamental changes occurring -- like changes to drain interval and demand in emerging market that have caused that volume number, long-term volume to rise perhaps above that period of 2% range, what are you guys thoughts on that?

We have done some work in that area earlier this year. We held to that 0% to 2% kind of range. The work we did earlier this year indicated it might be more in the 2% to 3% range. I’ll be real hesitant to call at anything more than that, but it’s an issue that will continue to readdress as well. Robert Felice - Gabelli & Company: Okay, great, thanks for taking my question.

Sure.

Thank you. Our next question comes from Mr. Ian Zaffino with Oppenheimer. Please proceed with your question.

Great, thank you very much. Couple of questions here, can you breakout some volume growth between the U.S. and your foreign exposure?

Yeah, if you do 2Q-to-2Q and it’s up 15 percentage points, four of those percentage points are from North America and the rest is outside of North America.

So, 4% is in America, 11% you said it’s foreign?

Correct.

Okay.

North America was 4%.

Okay. And what was the timing of your fee price increases, when did they actually go into effect?

They have just rolled in through the course of the year. They are still rolling in right now. And I don’t have the exact times on it.

Okay, can you give us a sensitivity of your base oil either how many gallons of base oil you use or give some metrics that we can kind of figure out what the sensitivity is there with movements in base oil?

Base oil is our largest raw materials and is probably around 20% of all our raw material purchases.

We don’t have a volume.

No, I mean it’s product by product, but it’s about 20% of our raw material purchases.

Okay, but that’s actually around the market. Can I get what your pricing is?

Sure.

And when you talk about margin all of our discussions. That’s a margin dollars or margin percentage. You know when you said action has taken we hope you recover margins?

Percentage.

Okay, so everything is percentage. Okay, I think that’s it, thank you very much.

Thank you, Ian.

Thank you. Our next question comes from Mr. [J.P Wright] with [Cross Capital]. Please proceed with your question.

Hello.

Hello.

Hi, thanks for good quarter, and that’s really a good quarter, this quarter, but it looks like things are very strong on the sales side of the business?

Thank you.

One thing I kind of wanted to talk about was, is I got the impression that you are on your base oil side on your cost side that the contracts you have with your suppliers are somewhat floating in nature, renegotiated, pricing is sort of determined weekly or very short-term. How was the relationship with contract terms for your customers? Does that have like a three month period or is obviously its little longer term than it is on your supplier side. Did you give some color on that?

Yeah, it is. In many cases it is longer on a customer side than it is on our supply side. At least the pricing mechanisms and when they can be readdressed. Historically this hasn’t been an issue. It’s only been really recently with the dramatic rate of increase in raw materials that this has become a real issue for it. We are addressing it. We are giving our best to tighten up that time lagged that we see because of the volatility in our cost structure today. I can’t give you any more exact data because our contracts range all over the map, but in general we are working toward tightening that time lag up. So that we don’t get caught quite in a situation we have been in the last few months.

Alright, can you talk a little bit kind of maybe on a qualitative side of your relationship with your customers, if I understand it correctly in many cases or at least in some cases your suppliers and your customers, are they the same person?

They are the same company.

Same company, not. You know, if base oil goes down, I guess the longer duration on the sales contracts helps, keep them from re-negotiating I guess. Is there more pressure there -- do you feel like sales get delayed if we see a declining base oil environment?

I don’t remember revenue. I am kidding.

I don’t have --

I am kidding.

In a short-term period?

But, even if we see crude continue to drop from it's high.

Yeah.

It takes the crude, the impact of the high crude of oil to roll to our supply chain and I think, if crude continues to drop more, we hope to see some base oil and other raw material softening. But we don’t expect at any time soon, because our supply chain is still dealing with $100 to $110 crude type of cost to their material.

Right, and then I have just one final question, on your base oil -- to what extent that the volume of base oil grow this quarter?

It would be directionally correct to assume, it just grows linear with our shipments.

Okay.

So, we were up sequentially 5% this quarter over last quarter, or 15 quarter-to-quarter. So, base oil would have followed that.

Is base oil becoming a higher percentage, are you needing to buy more gallons of base oil per gallon of additive that you’re selling or is that declining? Is that more other stuff, non base oil stuff in your net finished product?

I think it’s a pretty steady stake.

Okay.

Than vary a whole lot quarter-to-quarter, year-to-year.

Alright, well appreciate it, thank you very much.

Thank you.

Thank you. Our next question is from Mr. Robert Felice with Gabelli & Company. Please proceed with your question. Robert Felice - Gabelli & Company: Guys, just one or two more questions, if we were to assume that raw material cost don’t escalate further don’t decline for the remainder of the year. They still stay at this elevated level. What is the absolute amount of cost inflation you would see in '08 versus '07, so with incremental like?

I haven’t done that arithmetic, Robert. Robert Felice - Gabelli & Company: Well, I am just trying to get a sense for the magnitude of pricing you need to offset that and then how much additional you need to recoup the margin.

Yeah, I’ll have to work on that and get back to you. I don’t have it. Robert Felice - Gabelli & Company: Okay, I’ll follow up with you offline on that one. And then lastly the all other line item, are you still expecting that to be about flat for the year?

Yeah, plus minus one is a view for the year. Robert Felice - Gabelli & Company: Okay, great.

Thank you.

Hi, thanks, to just a couple of follow-ups here, what is the pricing on base oil that you have seen since the quarter and so, you gained that 47% from May and July, what are you seeing in July?

I think the base oil market has been pretty stable in the last month or so.

Okay.

Yeah.

And then you mentioned that the chain is still seeing $110 oil?

I don’t have an exact figure on that. My point was that the supply chain has not been seeing $140 of barrel oil. They have been seeing something less than that. So, just because oil has retreated half of his max crude has, doesn’t mean that we expect to see a corresponding decrease in our cost.

And how long is that supply chain?

Another couple of months. One or two month.

Okay, so –

So, don’t be looking for any raw material reductions if crude today is at 120-ish is the message?

I am actually looking the other way, if you’re seeing it is still processing 110. Are they going to see price increases?

We don’t expect it.

Okay and then lastly, when you spoke of the tight supply of your other raw material, what were you basically alluding to?

We buy a lot of different commodity chemicals and different smaller amounts and we are talking about the environment in general and not any specific one.

Okay. Thank you very much.

You bet.

Thank you. There are no further questions at this time. I would now like to turn the floor back over to management for closing comments.

Well thanks everyone for joining and talk to you next quarter. Have a good day.

Ladies and gentleman, this concludes today’s teleconference. You may disconnect your lines at this time. Thank you for your participation.