2Q Improvements for Afton, Calumet


NewMarkets Afton Chemical additives subsidiary saw hefty upticks in revenues and operating profits, and Calumet substantially reduced its net loss, for the quarter ending June 30 compared to the year-ago quarter.

Calumet Specialty Products Partners reported a net loss of $900,000 for the quarter ending June 30, compared to a net deficit of $26 million in the year-earlier period. Calumets sales reached $514.7 million in the second quarter, up almost 16 percent from $444 million in 2009s second quarter.

We are pleased with our results for the second quarter, considering our Shreveport refinery was down for an extended turnaround during the entire month of April 2010, said Bill Grube, CEO and president of Indianapolis-based Calumet. We continue to focus on increased run rates to meet higher demand for our specialty products and to take advantage of higher fuel products margins during the summer months.

The company attributed an increase of $25.7 million in specialty products segment gross profit compared to 2009s second quarter primarily to an increase of 41.5 percent in the average selling price per barrel, while the average cost of crude oil per barrel increased by only 32.3 percent. Also, specialty products sales volumes increased 4.7 percent, due primarily to improvements in overall specialty products demand and the addition of sales volumes under our specialty products agreements with LyondellBassell, which we entered into during the fourth quarter of 2009, Calumet noted.

Meanwhile, Afton Chemical recorded operating profit of $76.6 million in 2010s second quarter, a 13 percent improvement from $67.6 million in the year-earlier period. Revenue in the second quarter reached $464.9 million for Afton, which is NewMarkets petroleum additives segment, up 26 percent from $368.2 million in revenue in the year-ago period.

This increase is mainly due to increased product shipments across all major product lines, stated Thomas Gottwald, president and CEO of NewMarket. Our business is performing well as we grow and continue to development new products and solutions for our customers, such as the new passenger car motor oil being introduced this year into North America.

NewMarket, of Richmond, Va., reached $39.9 million in overall net income, or $2.69 per share in the second quarter, improving 30 percent on net income of $30.7 million, or $2.01 per share in 2009s second quarter.

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