• First Quarter 2013 Petroleum Additives Operating Profit of $102 Million
• 20 Percent Increase in Dividend Declared During the First Quarter
• 90,800 Shares Repurchased

RICHMOND, Va. -- (Business Wire)

NewMarket Corporation (NYSE:NEU) President and Chief Executive Officer, Thomas E. Gottwald, released the following earnings report of the Company’s operations for the first quarter of 2013.

Net income for the first quarter of 2013 was $67.8 million, or $5.07 per share, compared to net income of $66.5 million, or $4.96 per share, for the first quarter of last year. Earnings for both the first quarter of this year and the first quarter of last year include an income benefit from an interest rate swap while the first quarter of last year also includes a charge for the early extinguishment of debt. The following Summary of Earnings reflects net income and earnings per share with and without these two items. Both of these items are discussed more fully in the financial statements that are part of this earnings release.

Net income for the first quarter 2013 reflects the benefit of a lower effective tax rate including the benefit of the 2012 R&D tax credit that was enacted during January 2013.

The first quarter's performance was very similar to that of last year's record first quarter. Sales of petroleum additives for this year’s first quarter were $558.4 million or nearly even with first quarter 2012 sales of $557.7 million. First quarter shipments for both periods were also at the same level. Operating profit was $102 million or 5 percent lower than last year's first quarter. For the rolling four quarters ended March 31, 2013, the operating profit margin was 16.7 percent which is in the range of our long-term expectations for our business.

Our petroleum additives business is performing well and we continue to increase our investment in research and development to enable the continuing flow of innovative products and solutions to our customers. The long-term fundamentals of our petroleum additives business are solid.

Our business continues to generate strong cash flows. During the first quarter we repurchased 90,800 shares of our stock at a cost of just over $23 million or an average cost per share of $253.61. Also during the quarter, our Board approved a 20 percent increase in the quarterly dividend to $0.90 per share. At the end of the quarter our leverage remained low at 1.1 debt to EBITDA.

We are pleased with the performance of our business for the first quarter of this year. Our strong financial performance enhances our capability to provide value to our customers and growth to our shareholders.

Please read our first quarter Form 10-Q for more details on the operation of the Company.

Sincerely,

Thomas E. Gottwald

The results for both the first quarter this year and last year include the impact from valuing an interest rate swap agreement at fair value at the end of each reporting period. The prior year results also include a loss on the early extinguishment of debt. The Company is reporting net income including these special items, as well as income excluding them, and related per share amounts in the Summary of Earnings included in the earnings release. The Company has also included the non-GAAP financial measure EBITDA in this earnings release. A schedule following the financial statements included in this earnings release is provided reflecting the calculation of EBITDA, defined as net income, before the deduction of interest and financing expenses, income taxes, depreciation and amortization. EBITDA is shown on the schedule both including and excluding the items noted above. The Company believes that even though these special items are not required by or presented in accordance with United States generally accepted accounting principles (GAAP), these additional measures enhance understanding of the Company’s performance and period to period comparability. The Company believes that these items should not be considered an alternative to net income determined under GAAP.

As a reminder, a conference call and Internet webcast is scheduled for 3:00 p.m. EDT on Thursday, April 25, 2013, to review first quarter 2013 financial results. You can access the conference call live by dialing 1-877-407-9210 (domestic) or 1-201-689-8049 (international) and requesting the NewMarket conference call. To avoid delays, callers should dial in five minutes early. The call will also be broadcast via the Internet and can be accessed through the Company’s website at www.NewMarket.com or www.investorcalendar.com. A teleconference replay of the call will be available until May 2, 2013 at 11:59 p.m. EDT by dialing 1-877-660-6853 (domestic) and 1-201-612-7415 (international). The conference ID number is 411513. A webcast replay will be available for 30 days.

NewMarket Corporation through its subsidiaries, Afton Chemical Corporation and Ethyl Corporation, develops, manufactures, blends, and delivers chemical additives that enhance the performance of petroleum products. From custom-formulated chemical blends to market-general additive components, the NewMarket family of companies provides the world with the technology to make fuels burn cleaner, engines run smoother and machines last longer.

Some of the information contained in this press release constitutes forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Although NewMarket’s management believes its expectations are based on reasonable assumptions within the bounds of its knowledge of its business and operations, there can be no assurance that actual results will not differ materially from expectations.

Factors that could cause actual results to differ materially from expectations include, but are not limited to: availability of raw materials and transportation systems; supply disruptions at single sourced facilities; ability to respond effectively to technological changes in our industry; failure to protect our intellectual property rights; hazards common to chemical businesses; occurrence or threat of extraordinary events, including natural disasters and terrorist attacks; competition from other manufacturers; sudden or sharp raw materials price increases; gain or loss of significant customers; risks related to operating outside of the United States; the impact of fluctuations in foreign exchange rates; political, economic, and regulatory factors concerning our products; future governmental regulation; resolution of environmental liabilities or legal proceedings; inability to complete future acquisitions or successfully integrate future acquisitions into our business and other factors detailed from time to time in the reports that NewMarket files with the Securities and Exchange Commission, including the risk factors in Item 1A, “Risk Factors” of our 2012 Annual Report on Form 10-K, which is available to shareholders upon request.

You should keep in mind that any forward-looking statement made by NewMarket in the foregoing discussion speaks only as of the date on which such forward-looking statement is made. New risks and uncertainties come up from time to time, and it is impossible for us to predict these events or how they may affect the company. We have no duty to, and do not intend to, update or revise the forward-looking statements in this discussion after the date hereof, except as may be required by law. In light of these risks and uncertainties, you should keep in mind that the events described in any forward-looking statement made in this discussion, or elsewhere, might not occur.

Contacts:

NewMarket Corporation
David A. Fiorenza
Investor Relations
804-788-5555
Fax: 804-788-5688
investorrelations@newmarket.com

Source: NewMarket Corporation