Welcome to the New Market Corporation Fourth Quarter 2008 Financial Results Conference Call. (Operator Instructions) It is now my pleasure to introduce your host, David Fiorenza, Vice President, Treasurer and Principal Financial Officer for New Market Corporation. Thank you, Mr. Fiorenza. You may begin.

Thank you, Brain. Thank you for joining me to discuss our fourth quarter and year end results. With me today is our CEO, Teddy Gottwald. Following our normal format, I have a few planned comments, after which we'll open the lines for your 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 based our statements on reasonable expectations and assumptions within the bounds 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 will be filing our 2008 10-K towards the end of February. I encourage you to review that filing for more information on the performance and financial condition of the company. As you saw yesterday, we reported our fourth quarter and year end results. To recap the year, income from continuing operations for the year was $73 million, an increase of 6% from earnings on the same basis for 2007 of $69 million before special items. Earnings per share on this basis for the year 2008 were $4.75 a share, an improvement of 17% over earnings per share on this basis for '07, or $4.07 a share before special items. The earnings per share percentage increase was more than the net income percentage increase due to the stock repurchase activity during each year. We did not purchase any stock in the fourth quarter of 2008. During the year 2007, discontinued operations and special items, net income for the year was $95 million, or $5.62 a…

(Operator instructions.) Our first question comes from the line of Saul Ludwig with KeyBanc Capital Markets.

Good morning. This is Saul.

Hello, Saul.

And my 201k is performing about the same. When you say demand will be within 5% to 8% of historical levels, you talk about end markets. What do you mean by that? That means down 5% to 8% versus last year. What do you really mean by that?

Yes, Saul, it's Teddy. That's what we were saying. We expect market demand in '09 to be 5% to 8% weaker than 2008.

And assuming that projection was exactly a reality, given the additional volume behind that you expect to experience in the first quarter, then your volume decline would be somewhat greater. Is that correct?

Yes, something towards the high end of that range.

Okay. And then, Dave, as you cut back production in the fourth quarter, you ran your plants at lower than full utilization. To what extent did your fourth quarter earnings, where they impacted by unabsorbed overhead – that normally would have gone into inventory, but probably went into period costs?

Yes, that factor, there were several millions of dollars in that and there would be some of that in the beginning of the first quarter.

And you mean, may be like $5 millionish?

Yes, that's fair.

I mean, is that too high, too low?

No, that's (inaudible).

Okay. And then finally, I suspect that in the fourth quarter, your price increases that you had put in place, prior to that, you probably have to keep most of that in the fourth quarter, yet you benefited, you are on LIFO, all right?

We are in LIFO in the United States and the conglomeration of methods around the world.

So you benefited as your raw material costs came down in the fourth quarter, and you had the widening margins, as you expected when you issued your third quarter outlook at the end of the third quarter. What do you think is going to happen to pricing relative to costs? With base oil plummeting again this week, do you see your selling prices trending lower, but maybe not as fast as raw material costs are coming down, and had you known those for sure, how are you handicapping the margin outlook for this year?

We are seeing our cost come down. You mentioned base oil. Base oil has dropped quite a bit. Some of our other raw materials are also seeing some pretty good decreases and our customers will see the benefits of those, as well our raw material costs, as we work the cheaper materials through our system. It's certainly our goal to maintain decent margins and that's about all I can say on that.

David, I wondered if you can address the tax rate, favorable. It was very nice in the fourth quarter. How should we be thinking about the tax rate this year?

Yeah, it is 33%. I used to think of '09.

What happened so it was there in '08, it's not going to happen again.

Well, I think 33% is a good number. What happens in the fourth quarter, when Congress waits to pass the R&D tax credit. You can't anticipate it, so effectively, we're taking a whole year's benefit in one quarter, because Congress took that long, might be negative. It just took that long to pass the bill saying we could do it.

Right. And are you assuming you are going to get the R&D tax credit again?

Yes, I am.

We are in that 33%. You're just assuming its going to be more equally balanced?

No, I don't know when it will pass again. It's already been, I have just been told it has already been passed. So, yes, it will be equally balanced.

Okay, great. Thank you very much. Nice quarter, guys.

Thank you.

Our next question comes from the line of Robert Felice with Gabelli & Company Robert Felice - Gabelli & Company: Hey, guys, congrats on a very nice quarter. I just wanted to follow-up on Saul's question regarding raw material cost and pricing. Maybe I'll ask it a little differently. Given the decline in volumes that you've seen so far, have you seen any change in pricing rationality amongst you and your competitors? In other words, is the supply-demand balance, listen to the point, where you would be forced to give back on price in any kind of meaningful rapid way and, to that end, have you had to give back on price yet?

We are in discussions with essentially all of our customers about the change in the cost structure and price structure, and yes, we are seeing some lowering of prices. As an industry, I would say, we aren't seeing any significant change from the dynamics of 2008. Robert Felice - Gabelli & Company: So, as I think about your margins for 2009, should I think that you will be able to hold on to your pricing long enough, given the drop in base oil costs that your margins will revert back to more historical levels. So, in other words, can you capture a decent portion of that price cost gap?

Well, I have to say I certainly hope so. We got burned on the way up through the better part of nine months of 2008, as the costs were going up. So, yes, I would hope that we would see some improvement as it comes down. Robert Felice - Gabelli & Company: So as I try to balance the dual dynamics we have here at lower volumes, but favorable price cost, should I expect that '09 operating income for petroleum additives will be greater than that in 2008?

We don't give that kind of guidance, and the tumultuous world that we're in today. I'm glad we don't give that kind of guidance. I think it is safe to assume, though, that the first quarter from a profit standpoint will be weak. Robert Felice - Gabelli & Company: Okay, thanks for taking my questions. Thank you.

Thanks.

Our next question is from the line of Ian Zaffino with Oppenheimer.

Hi, thank you. Just want to get a sense of the pricing right now. The prices that are in place right now, how much are they up year-over-year?

Percentage wise, I think, I don't have that number.

Okay, as I guess --

It will be in our 10-K, we'll be able to calculate that for you.

Okay, I'm just trying, the point I am trying to get at is, what do the revenues in the first quarter look like? Recent volumes are down 20%, prices were probably enough to offset that. Is that the right way to look at it?

Yes, absolutely, we said we were up 1%, but volumes were down at 19% and prices were enough to cover.

Okay, okay and then --

I was talking fourth quarter, right?

Right, I'm talking first quarter though, I mean, what you've seen so far.

We've got one month in the book and volumes were in line with November-December. That's all we know right now.

And pricing has been relatively the same as November-December?

Well, you know, there is no easy answer to that. We have a lot of customers and we have different situations that exist.

So is that biased to our pricing pressure or pricing power?

Ian, there's going to be a lot of pressure. Customers know exactly what's going on at the raw material side.

Okay. All right, thank you very much.

Okay.

(Operator Instructions.) We have a follow-up question from Robert Felice. Robert Felice - Gabelli & Company: Hey, guys, just as a point of clarification, would you expect your first quarter earnings to be weaker on a sequential basis or on a year-over-year basis or both?

Both, because they are both about the same round numbers. Robert Felice - Gabelli & Company: Okay. Why would you expect first quarter to be so weak? I understand that the volumes are off quite a bit, but imagine you're still benefiting from the favorable widening of your price cost gap, and the volume deterioration, as you mentioned, will be at the high end of that 5% to 8% range, but not materially different than 4Q. So some clarification on 1Q profitability levels would be appreciated.

Yeah. I guess there are couple of points. As I said in my planned comments, we had a good October and not a good November-December. And so, we are also telling you that first quarter is looking more November-Decemberish. So I got three November-Decembers, we look at that way. And then we are going to be working some inventories down. As Saul asked earlier, we'll likely have some negative impact of the unabsorbed cost in the first quarter. So, all those factors together lead to us to make the comments that we are making. Robert Felice - Gabelli & Company: Okay, that's helpful.

Our next question comes from the line of [Jim Leonard] with SunTrust Investment Services.

Hi, Teddy. Hi, David.

Hi.

Teddy, how is the golf going?

Non-existent.

I understand. Being with a bank and all kind of things we're going through right now. Just wanted to ask, do you have any concerns about accounts receivable and bad debts, will put some of the clients?

Yes, during the end of last year, it was great to have such a first class set of customers. The answer to that question is, there are always one or two you worry about, but, by and large, we have no concern.

Thank you, have a great day.

Our next question is a follow up question from Mr. Ludwig with KeyBanc Capital Markets.

Hi. With regard to balance sheet part, and obviously the need to get some long-term financing there... When is that construction loan, it has to be paid off... What are you doing about that, and what's your back stop plan if credit conditions don't get a lot better than they are right now?

The construction loan is due in August of 2010.

August, okay.

And to answer to your question, what if they don't get better, we are going to be chasing down alternative path, either short-term solution or long-term, confident that we will find something in the timeline that we have to deal with.

Okay. You mentioned that your pension expense would be up about only $2 million.

That's right.

Okay, you've got the assets and your pension plan was about a $100 million, and they got clipped by probably $30 million to $40 million, so I got you 7% return on that, that results in the additional expense. Okay. And how are you thinking about FX and its influence on your earnings this year, and how much did FX help you in '08 that may go away this year?

In our last Q, we said 10ish million help, and '08 versus '07 fourth quarter was relatively zero. So, the answer to your question would be $10 million, if rates stayed where they are now, all year.

That goes against you.

Correct.

And then didn't you also have, was it the first quarter of last year, this may help in the first quarter, didn't you win a lawsuit or something that you had some income in the first quarter of '08?

Yes. We had $3 million of pre-tax benefit in the first quarter of '08 from…

So, that's $2 million, I mean that's $0.12 a share right there that goes away, right?

Yes.

Okay. I think that would maybe, a little clarity to, you know, part of your first quarter expectation of directionally lower results. Okay, great. Thank you very much.

You're welcome.

(Operator Instructions.) Seeing as there are no further questions, I'd like to turn the call back to management for concluding remarks.

Well, thank you for joining us and we'll talk to you next time. Have a good day.

Ladies and gentlemen, this concludes today's teleconference. Thank you all for your participation.