NewMarket Corporation Reports Third Quarter and First Nine Months 2016 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 2016.

Net income for the third quarter of 2016 was $71.4 million, or $6.03 per
share, compared to net income of $62.0 million, or $5.08 per share, for
the third quarter of 2015. For the first nine months of 2016, net income
was $197.8 million, or $16.68 per share, compared to net income of
$184.7 million, or $14.94 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
2016 earnings were $71.1 million, or $6.00 per share, compared to $64.1
million, or $5.25 per share, last year. On the same basis, earnings for
the first nine months of this year were $200.7 million, or $16.93 per
share, compared to $187.4 million, or $15.16 per share, last year (see
Summary of Earnings table below). In September 2016, the interest rate
swap agreement was terminated.

Petroleum additives operating profit for the third quarter of 2016 was
$106.4 million, a 5.8% increase over third quarter operating profit last
year of $100.5 million. The increase was primarily due to lower raw
material and conversion costs, partially offset by decreases in selling
prices. Sales for the petroleum additives segment for the third quarter
of 2016 were $512.4 million, down 4.4% versus the same period last year,
due mainly to changes in selling prices and mix. Shipments between the
quarterly periods were flat compared to the same period last year, as
the decrease in lubricant additive shipments was offset by an increase
in fuel additives shipments. Lower lubricant additives shipments in the
North America, Latin America, and European regions were partially offset
by an increase in Asia Pacific. North America was the primary driver for
the increase in fuel additives shipments.

For the first nine months of the year, operating profit for the
petroleum additives segment was $309.3 million compared to $299.6
million for the first nine months of 2015, or an increase of 3.2%. The
increase was primarily due to lower raw material and conversion costs,
partially offset by decreases in selling prices and shipments. Sales for
the first nine months of the year were $1,535 million compared to sales
in the first nine months of last year of $1,648 million, or a decrease
of 6.9%. This decrease was due mainly to changes in selling prices, mix
and lower shipments. Shipments decreased 1.6% between periods, as the
decrease in lubricant additives shipments was partially offset by an
increase in fuel additives shipments. The regional drivers for those
increases and decreases were consistent with the drivers in the third
quarter discussed above.

We continued to generate solid operating cash flows in the first nine
months of 2016. During this period, we paid dividends of $56.9 million,
funded capital expenditures of $101.7 million which included the
continued investment in our new manufacturing facility in Singapore, and
repurchased 98,867 shares of our common stock for a total cost of $35.8
million, or an average cost of $362.25 per share. Also during the
period, our cash balance increased $94.5 million while our long-term
debt increased by $40.5 million.

The petroleum additives segment continues to deliver solid operating
results. We remain committed to making investments in order to meet our
customers’ ever-changing business needs. 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.

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 Thursday, October 27, 2016 to review third quarter and
first nine months 2016 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,
2016 at 11:59 p.m. EDT by dialing 1-877-660-6853 (domestic) or
1-201-612-7415 (international). The conference ID number is 13647401. 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, the availability of raw
materials and distribution systems; disruptions at manufacturing
facilities, including single-sourced facilities; the 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; the gain or loss of significant customers; the occurrence or
threat of extraordinary events, including natural disasters and
terrorist attacks; risks related to operating outside of the United
States (including the additional risks and uncertainties introduced by
the recent referendum on the United Kingdom’s membership in the European
Union); 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; our inability to realize expected benefits from investment
in our infrastructure or future acquisitions or our inability to
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 2015 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 arise 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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