Profits, Sales Up for Afton

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Profits, Sales Up for Afton

Afton Chemical reported 15% higher operating profit and a 12% bump in sales for the quarter ending Sept. 30 as increases in its own selling prices overcame challenges in raw material and operating costs.

The company, which is the petroleum additives segment of NewMarket Corp., reported operating profit of $83 million, improving from $72.1 million for the same period last year. “The increase was mainly due to increased selling prices, partially offset by higher raw material and operating costs and decreased shipments,” NewMarket said in its earnings release.

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Sales for the segment rose 12% to $692.7 million, compared to $619.1 million. Shipments declined 9% in the quarter, the company said, which included decreases in lubricant additives across all regions.

In its earnings release, NewMarket Chairman and CEO Thomas Gottwald said the company had seen progress in its efforts to recover margins and control costs but was still challenged by the ongoing inflationary environment.

“Margin recovery and cost control will continue to be a priority for the remainder of this year and into 2023, so that our margins will again be consistent with our historical ranges,” Gottwald said. “Worldwide supply chain disruptions continue to negatively impact our business, and we are working to resolve the supply chain issues to meet our customers’ growing needs.”

Richmond, Virginia-based NewMarket reported net income of $63.2 million, or $6.32 per diluted share, up from $52 million.

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