Afton Chemical suffered drops in sales and operating profit for the fourth quarter plus a dip in sales for the full year of 2023 but achieved a healthy increase in operating profit on the year due to selling prices and favorable product mix.
As reported by parent company NewMarket Corp., Afton Chemical petroleum additives segment had an operating profit of $110.4 million for the fourth quarter, down about 6% from $117.1 million during the same period in 2022. On the year, operating profit rose 36%, from $378.2 million in 2022 to $514.4 million in 2023.
The company attributed the higher profits to selling prices and favorable product mix, partially offset by lower shipments and higher raw material and operating costs. Shipments decreased close to 11% in 2023, compared to 2022, with reduced shipments of lube additives in all regions. The reduction in shipments was a result of weaker economic conditions and inventory rationalization that persists in the chemical industry.
Sales for the business dropped over 5% in the fourth quarter from $680.3 million to $642 million. For all of 2023, sales dipped about 3% from $2.8 billion to $2.7 billion.
Fourth quarter net income for the Richmond, Virginia-based company was $80.4 million, down 11% from $90.5 million in the previous, year’s quarter. Net income for 2023 was $388.9 million, up 39% compared to 2022 when it posted net income of $279.5 million.
As reported by parent company NewMarket Corp., Afton Chemical petroleum additives segment had an operating profit of $110.4 million for the fourth quarter, down about 6% from $117.1 million during the same period in 2022. On the year, operating profit rose 36%, from $378.2 million in 2022 to $514.4 million in 2023.
The company attributed the higher profits to selling prices and favorable product mix, partially offset by lower shipments and higher raw material and operating costs. Shipments decreased close to 11% in 2023, compared to 2022, with reduced shipments of lube additives in all regions. The reduction in shipments was a result of weaker economic conditions and inventory rationalization that persists in the chemical industry.
Sales for the business dropped over 5% in the fourth quarter from $680.3 million to $642 million. For all of 2023, sales dipped about 3% from $2.8 billion to $2.7 billion.
Fourth quarter net income for the Richmond, Virginia-based company was $80.4 million, down 11% from $90.5 million in the previous, year’s quarter. Net income for 2023 was $388.9 million, up 39% compared to 2022 when it posted net income of $279.5 million.