Afton Chemical, NewMarkets petroleum additives segment, reported $70.4 million in operating profit for the quarter ending March 31, up 41 percent from $50.1 million in 2009s first quarter.
The increase reflects the benefit of higher lubricant additives operating profits, said Thomas Gottwald, president and CEO of Richmond, Va.-based New Market. The petroleum additives segment totaled $389.3 million in revenue for the first quarter, up 16 percent from $334.8 million in the year-ago period.
Shipments increased 21 percent for the first quarter this year, compared to the same period in 2009, attributed primarily to the lubricant additives product lines. Shipments were especially weak in the first two months of last year, and are now at a level we believe is near normal, Gottwald noted.
Investments in geographic expansion have led to improvements in all regions, he observed. In July 2009, Afton entered a long-term chemical processing agreement with toll manufacturer Chemical Specialties (Singapore) Pte Ltd. to improve its security of supply and provide shorter lead-times with products specific to customers in the Asia Pacific region. Afton acquired Manchester, U.K.-based metalworking fluid additives supplier Polartech in March this year.
During the quarter, we welcomed over 100 employees of Polartech into our corporate family and are excited about integrating this business and expanding our global footprint with the production facilities in India and China, he added.
Richmond, Va.-based NewMarket posted $42.1 million in overall net income, or $2.78 per share in the first quarter, up 47 percent from $28.7 million, or $1.88 per share, in 2009s opening quarter.