NEU - NewMarket Corporation: Surprisingly Strong Start Of The Year Despite Expensive Acquisition
2024-06-20 10:30:00 ET
Summary
- NewMarket owns Afton Chemical and Ethyl Corp., with strong earnings growth in the first quarter of the year.
- Operating profit in the specialty materials division was negative due to non-recurring items related to the AMPAC acquisition.
- Despite the operating loss, NewMarket's strong cash flow and potential debt reduction make it an attractive investment opportunity.
Introduction
NewMarket ( NEU ) is a holding company that owns Afton Chemical, which produces petroleum additives (including fuel additives and lubricants) while another subsidiary, Ethyl Corp., produces antiknock compounds primarily used in the automotive industry. These two divisions make up the petroleum additives subdivision, while recently-acquired AMPAC now forms the specialty materials subdivision....
NewMarket Corporation: Surprisingly Strong Start Of The Year Despite Expensive Acquisition