NewMarket Corporation Reports Third Quarter and First Nine Months 2015 Results

NewMarket Corporation (NYSE:NEU) Chairman and Chief Executive Officer,
Thomas E. Gottwald, released the following earnings report of the
Company’s operations for the third quarter and first nine months of 2015.

Net income for the third quarter of 2015 was $62.0 million, or $5.08 per
share, compared to net income of $56.9 million, or $4.53 per share, for
the third quarter of 2014. For the first nine months of 2015, net income
was $184.7 million, or $14.94 per share, compared to net income of
$181.2 million, or $14.20 per share, for the first nine months of last
year. Net income for all periods included the impact of valuing an
interest rate swap at fair value. Excluding this item, third quarter
2015 earnings were $64.1 million, or $5.25 per share, compared to $56.8
million, or $4.52 per share, last year. On the same basis, earnings for
the first nine months of this year were $187.4 million, or $15.16 per
share, compared to $183.9 million, or $14.41 per share, last year (see
Summary of Earnings table below).

Petroleum additives operating profit for the third quarter of 2015 was
$100.5 million, a 6.6% increase over the third quarter operating profit
last year of $94.3 million. The increase was mainly due to lower raw
material costs partially offset by an increase in research and
development investments and changes in foreign currency exchange. Sales
for the petroleum additives segment for the third quarter of 2015 were
$536.2 million, down 8.4% versus the same period last year, due mainly
to foreign currency exchange and changes in selling prices and mix.
Shipments were essentially flat between the periods, with
increases in fuel additives shipments globally offset by declines in
lubricant additives, primarily in the North America region.

For the first nine months of the year, operating profit for the
petroleum additives segment was $299.6 million, the same as the first
nine months of 2014. Sales for the first nine months of this year were
$1,648.3 million compared to sales in the first nine months of last year
of $1,777.2 million, or a decrease of 7.3%. This decrease was primarily
due to foreign currency exchange and changes in selling prices and mix.
Shipments remained relatively flat between the periods, with
increases in fuel additives shipments, primarily in the North America
region, offset by declines in lubricant additives in all regions except
for Latin America.

Our business continues to generate strong cash flows. During the year,
we paid dividends of $51.6 million, funded capital expenditures of $84.2
million and repurchased 456,483 shares of our common stock for a total
of $180.6 million, including 435,400 shares in the third quarter.

Construction continues on our new manufacturing facility on Jurong
Island, Singapore. We expect to complete the first phase of this
facility in late 2015, with commercial production in early 2016. In
August, we announced the second phase of construction, which includes
additional component production units that will more than double our
investment in the Singapore facility. Phase two is scheduled to be
completed in 2017.

Our petroleum additives business continues to perform consistent with
our expectations. Our ongoing commitment to provide our customers with
innovative solutions to meet their business needs is evidenced by the
15% increase in our research and development investments thus far in
2015 and the construction of our manufacturing facility in Singapore. We
believe the fundamentals of how we run our business - a long-term view,
safety-first culture, customer-focused solutions, technology-driven
product offerings, and world class supply chain capability - will
continue to be beneficial for all our stakeholders.

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

Sincerely,

Thomas E. Gottwald

The results for this year and last year include the impact of valuing an
interest rate swap at fair value. The Company is reporting net income
and related per share amounts including this item, as well as excluding
it, in the Summary of Earnings table included in the earnings release.
The Segment Results and Other Financial Information table included in
this earnings release includes a non-GAAP financial measure, Income
before Special Items and Income Tax Expense, which is reconciled to a
GAAP measure. 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 income from continuing
operations, before the deduction of interest and financing expenses,
income taxes, depreciation and amortization. EBITDA is shown on the
schedule both including and excluding the interest rate swap agreement.
The Company believes that even though these 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 Tuesday, October 27, 2015 to review third quarter and
first nine months 2015 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 November 3,
2015 at 11:59 p.m. EST by dialing 1-877-660-6853 (domestic) and
1-201-612-7415 (international). The conference ID number is 13621568. 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 additive packages to market-general
additives, the NewMarket family of companies provides the world with the
technology to make engines run smoother, machines last longer, and fuels
burn cleaner.

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 distribution systems; disruptions at manufacturing
facilities, including single-sourced facilities; ability to respond
effectively to technological changes in our industry; failure to protect
our intellectual property rights; failure to attract and retain a
highly-qualified workforce; hazards common to chemical businesses;
competition from other manufacturers; sudden or sharp raw material price
increases; gain or loss of significant customers; occurrence or threat
of extraordinary events, including natural disasters and terrorist
attacks; risks related to operating outside of the United States; the
impact of fluctuations in foreign exchange rates; an information
technology system failure; political, economic, and regulatory factors
concerning our products; future governmental regulation; resolution of
environmental liabilities or legal proceedings; and 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 2014 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.

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