RICHMOND, Va. - NewMarket Corporation (NYSE: NEU) has announced that its Board of Directors has declared a quarterly dividend of $2.50 per share on the company's common stock. This dividend is slated for payment on January 2, 2025, to shareholders of record as of December 16, 2024.
NewMarket, a holding company, operates through its subsidiaries including Afton Chemical Corporation, Ethyl Corporation, and American Pacific Corporation. These companies specialize in the development, manufacturing, blending, and delivery of chemical additives to enhance the performance of petroleum products. American Pacific Corporation focuses on producing specialty materials for solid rocket motors in the aerospace and defense sectors.
The press release also contains forward-looking statements under the Private Securities Litigation Reform Act of 1995. Management of NewMarket believes that their expectations are based on reasonable assumptions. However, it is noted that actual results could vary significantly from their expectations due to various factors. These include the availability of raw materials and distribution systems, production disruptions, hazards inherent in chemical businesses, technological changes, intellectual property rights protection, raw material price volatility, competition, government regulations, customer retention, government contract changes, workforce attraction and retention, IT system failures or security breaches, extraordinary events such as natural disasters or pandemics, and operational risks outside the United States.
The company also acknowledges the impact of foreign exchange rates, environmental liabilities, legal proceedings, insurance limitations, and the potential inability to realize expected benefits from investments or acquisitions. NewMarket's performance may also be affected by additional cash contributions to pension plans due to underperforming pension assets and other factors periodically detailed in reports filed with the Securities and Exchange Commission.
Investors are cautioned to consider these risks and uncertainties, keeping in mind that forward-looking statements provided by NewMarket are valid only as of the date they are made. The company does not intend to update these statements following the publication date, except as required by law. Given these risks, the events predicted in forward-looking statements may not come to fruition.
This financial update is based on a press release statement from NewMarket Corporation.
In other recent news, NewMarket Corporation has reported an increase in net income to $112 million for the second quarter of 2024, up from $100 million in the same period last year. This has been accompanied by a rise in earnings per share to $11.63, compared to $10.36 in the previous year. The company's petroleum additives segment saw a slight increase in shipments, while the acquisition of AMPAC contributed to the specialty materials segment's sales.
Furthermore, NewMarket Corporation announced the retirement of its Vice President and Chief Financial Officer, William J. Skrobacz, effective December 31, 2024. Timothy K. Fitzgerald will succeed Skrobacz as Vice President and Chief Financial Officer starting January 1, 2025.
In other company news, NewMarket declared a quarterly dividend of $2.50 per share, reflecting its ongoing financial strategies. Looking forward, NewMarket anticipates continued strength in its petroleum additives segment and a successful integration of AMPAC. These are recent developments in the company.
InvestingPro Insights
NewMarket Corporation's recent dividend declaration aligns with its strong track record of shareholder returns. According to InvestingPro data, the company has maintained dividend payments for 19 consecutive years and has raised its dividend for 5 consecutive years. This consistency in dividend policy underscores NewMarket's financial stability and commitment to shareholder value.
The company's financial health is further reflected in its profitability metrics. With a P/E ratio of 12.58 and an adjusted P/E ratio of 12.64 for the last twelve months as of Q2 2024, NewMarket appears to be trading at attractive valuations relative to its earnings. This is particularly noteworthy given the company's strong profitability, as evidenced by its operating income margin of 20.68% for the same period.
InvestingPro Tips suggest that NewMarket is trading at a low P/E ratio relative to its near-term earnings growth, which could indicate potential upside for investors. Additionally, the company's valuation implies a strong free cash flow yield, further supporting its ability to maintain and potentially grow its dividend payments.
It's worth noting that while NewMarket faces various risks as outlined in the article, its financial position appears robust. The company's ability to cover interest payments with its cash flows and its liquid assets exceeding short-term obligations provide a buffer against some of the operational and market risks mentioned.
For investors seeking more comprehensive analysis, InvestingPro offers 11 additional tips for NewMarket, providing a deeper understanding of the company's financial position and market performance.
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