RICHMOND - NewMarket Corporation (NYSE: NEU), a holding company with subsidiaries in the chemical additives and specialty materials sectors, has declared a quarterly dividend of $2.50 per share. This dividend is slated for payment on October 1, 2024, to shareholders who are on record as of the close of business on September 16, 2024.
The company, through its subsidiaries such as Afton Chemical Corporation, Ethyl Corporation, and American Pacific Corporation, operates primarily in the development and manufacturing of chemical additives for petroleum products and specialty materials for the aerospace and defense industries. NewMarket emphasizes its long-term commitment to its employees, safety standards, innovative customer solutions, and broader societal contributions.
In the press release, NewMarket also included forward-looking statements, cautioning that actual results could materially differ from expectations due to a variety of factors. These factors range from the availability and cost of raw materials to market competition and potential regulatory changes. The company also highlighted potential risks including production disruptions, intellectual property protection, and the impact of global events such as natural disasters, political instability, or health epidemics.
Furthermore, NewMarket's management has made it clear that while they believe their expectations are reasonable, there can be no certainty that future results will align with these projections. They also stated that they do not intend to update these forward-looking statements beyond the publication date, except as required by law.
This dividend announcement is a routine part of NewMarket's financial calendar and reflects its ongoing financial strategies. The company's full financial outlook and risk factors are detailed in its regular filings with the Securities and Exchange Commission, which include its Annual Report on Form 10-K for the year ended December 31, 2023, and its Quarterly Report on Form 10-Q for the period ended June 30, 2024.
The information reported is based on a press release statement from NewMarket Corporation.
In other recent news, NewMarket Corporation has reported a rise in net income to $112 million for the second quarter of 2024, an increase from the previous year's $100 million. The earnings per share also saw an uptick to $11.63, compared to $10.36 in the same period last year. The company's petroleum additives segment witnessed a slight increase in shipments and a profit rise, despite a drop in selling prices. The acquisition of AMPAC contributed to the sales of the specialty materials segment and a shift from a loss to a profit.
NewMarket also reported strong cash flows, a significant reduction in debt, and the maintenance of a net debt to EBITDA ratio within the targeted range. The company projects its capital expenditures to be between $50 million and $70 million for 2024.
In terms of future expectations, NewMarket anticipates continued strength in its petroleum additives segment and a successful integration of AMPAC. Despite a decrease in petroleum additives net sales compared to the previous year, the company managed to increase petroleum additives shipments by approximately 1% and lower raw material and operating costs contributed to increased profits. These are recent developments that have been reported.
InvestingPro Insights
As NewMarket Corporation (NYSE: NEU) announces its quarterly dividend, a glance at the company's financials through InvestingPro reveals several key metrics that may be of interest to shareholders and potential investors. With a market capitalization of $5.23 billion and a P/E ratio standing at 12.78, the company presents itself as a potentially attractive investment.
InvestingPro Tips highlight that NewMarket has been consistent in rewarding its shareholders, raising its dividend for 5 consecutive years and maintaining dividend payments for 19 consecutive years. The company's stock also trades with low price volatility, which might appeal to investors seeking stable equity performance. For those looking into a deeper financial dive, InvestingPro offers additional tips on NewMarket Corporation, available at https://www.investing.com/pro/NEU.
Examining the company's financial health, NewMarket's liquid assets exceed its short-term obligations, suggesting a strong liquidity position. Additionally, the company's valuation implies a robust free cash flow yield, which is a positive sign for investors looking for companies that generate sufficient cash.
Investors might also find the InvestingPro Data on revenue growth insightful. Despite a slight year-over-year decline of -1.77% in revenue for the last twelve months as of Q2 2024, the quarterly revenue growth shows a more positive outlook with a 3.66% increase. This could indicate a rebound or growth in the company's business segments. The fair value estimated by analysts stands at $651, while InvestingPro's fair value is a bit more conservative at $490.96, offering different perspectives on the company's valuation.
For those interested in a comprehensive analysis, InvestingPro provides a total of 10 additional tips on NewMarket Corporation, which could guide investment decisions.
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