RICHMOND, Va. - NewMarket Corporation (NYSE: NEU) announced the upcoming retirement of its Vice President and Chief Financial Officer, William J. Skrobacz, effective December 31, 2024. Skrobacz, who has been with the company for over 13 years, will retire from NewMarket in 2025. He has held various finance and accounting positions within the company, ascending to the CFO role in January 2023.
Teddy Gottwald, President and CEO of NewMarket, expressed gratitude for Skrobacz's contributions, emphasizing his role in managing the company's balance sheet and providing leadership. Gottwald also acknowledged Skrobacz's efforts in building a robust finance and accounting organization within NewMarket.
Following Skrobacz's departure, Timothy K. Fitzgerald will take over as Vice President and Chief Financial Officer starting January 1, 2025. Fitzgerald, 47, joined NewMarket around 10 years ago and has served as the Company’s Treasurer and Finance Director since January 2024. With over 20 years of experience in finance and accounting, Fitzgerald's background includes a focus on team building, talent development, and financial planning.
Gottwald remarked on Fitzgerald's comprehensive financial expertise and his readiness to guide NewMarket into the future, anticipating continued success under his leadership.
NewMarket Corporation operates through its subsidiaries, including Afton Chemical Corporation, Ethyl Corporation, and American Pacific Corporation (AMPAC). These companies specialize in developing and manufacturing chemical additives for petroleum products and materials for the aerospace and defense industries, respectively.
The information in this article is based on a press release statement from NewMarket Corporation.
In other recent news, NewMarket Corporation declared a quarterly dividend of $2.50 per share, emphasizing its ongoing financial strategies. The company also reported a rise in net income to $112 million for the second quarter of 2024, an increase from the previous year's $100 million. Earnings per share saw an uptick to $11.63, compared to $10.36 in the same period last year. The petroleum additives segment witnessed a slight increase in shipments, and the acquisition of AMPAC contributed to the sales of the specialty materials segment. 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. As part of future expectations, NewMarket anticipates continued strength in its petroleum additives segment and a successful integration of AMPAC. These are recent developments that have been reported.
InvestingPro Insights
As NewMarket Corporation (NYSE: NEU) prepares for a leadership transition in its finance department, investors may find additional context in the company's financial metrics and market performance. According to InvestingPro data, NewMarket boasts a market capitalization of $5.08 billion, reflecting its substantial presence in the chemical additives and aerospace materials sectors.
The company's financial health appears robust, with a price-to-earnings (P/E) ratio of 12.41, suggesting a potentially attractive valuation relative to its earnings. This is further supported by an InvestingPro Tip indicating that NewMarket is trading at a low P/E ratio relative to its near-term earnings growth, which could be of interest to value-oriented investors.
NewMarket's commitment to shareholder returns is evident in its dividend history. An InvestingPro Tip highlights that the company has raised its dividend for 5 consecutive years, with a current dividend yield of 1.85%. This consistent dividend growth may provide reassurance to investors during the upcoming leadership transition.
The company's financial stability is underscored by another InvestingPro Tip, which notes that NewMarket's cash flows can sufficiently cover interest payments. This financial prudence aligns with the outgoing CFO William J. Skrobacz's efforts in managing the company's balance sheet, as mentioned in the article.
For investors seeking a deeper understanding of NewMarket's financial position, InvestingPro offers 7 additional tips, providing a more comprehensive analysis of the company's prospects and potential risks.
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