Earnings Labs

NewMarket Corporation (NEU)

Q2 2020 Earnings Call· Sun, Aug 2, 2020

$679.02

-2.46%

Key Takeaways · AI generated
AI summary not yet generated for this transcript. Generation in progress for older transcripts; check back soon, or browse the full transcript below.
Transcript

Operator

Operator

Good day, ladies and gentlemen, and welcome to the NewMarket Corporation Conference Call and Webcast to review second quarter 2020 financial results. All lines have been placed on a listen-only mode for the duration of today’s call. At this time, it is my pleasure to turn the floor over to your host to Mr. Brian Paliotti. Sir, the floor is yours.

Brian Paliotti

Management

Thank you, Jess, and thanks, everyone, for joining me this afternoon. As a reminder, some of the statements made during this conference call may be forward-looking. Relevant factors that could cause actual results to differ materially from those forward-looking statements are contained in our earnings release and in our SEC filings, including our most recent Form 10-K. During this call, we may also discuss non-GAAP financial measure included in our earnings release. The earnings release, which can be found on our website, includes a reconciliation of the non-GAAP financial measure to the comparable GAAP financial measure. We filed our 10-Q this morning. It contains significantly more detail on the operations and performance of our company. Please take time to review it. I will be referring to the data that was included in last night’s earnings release. Net income was $22.3 million or $2.05 a share compared to net income of $74.2 million or $6.63 per share for the second quarter of last year. Petroleum additives net sales for the second quarter of 2020 were $408.7 million compared to $560.8 million for the same period in 2019. Petroleum additives operating profit for the quarter was $33.1 million, lower than the second quarter operating profit of last year of $103 million. Overall, the story for the second quarter is simple: our shipments were significantly impacted by the COVID-19 pandemic. With dramatically less miles driven and travel, and with less industrial production specifically with automobile plant closures, global demand for both lubricants and fuel additives declined substantially. Our sales volume was of an unprecedented 24% versus the same quarter last year and down 25% versus the first quarter of 2020. Lower shipments drove lower sales revenue and lower profit. All of the financial and operational comparisons were muted by this impact. During our…

Q -

Management