Afton Chemical and Quaker Chemical each reported increases in sales and operating profit for the first quarter, compared to the year-ago quarter.
NewMarket, Afton Chemicals parent company, said its petroleum additives segment reported operating profit of $107.2 million for the first quarter, up 33 percent from $80.6 million in the 2011s first quarter. The petroleum additives segment posted $557.7 million in revenue for the first quarter, up 11 percent from $502.7 million in the year-earlier period.
The strong performance reflects higher operating profit margins and improvements in all our major product lines as well as most major geographic regions in which we operate, said NewMarket President and CEO Thomas Gottwald. We are currently experiencing rising raw material costs which will impact future quarters performances. We expect 2012 to show better financial results than 2011, but we do not expect to post four consecutive quarters like this one.
Richmond, Va.-based NewMarket recorded $66.5 million in overall net income or $4.96 per share for the first quarter, up 34 percent from $49.6 million net income, or $3.57 per diluted share, in the year-ago period.
Meanwhile, lubricant supplier Quaker Chemical of Conshohocken, Pa., posted $11.9 million in net income for the first quarter, up 13 percent from $10.6 million in the year-earlier period. The companys net sales reached $177.6 million, up 11.1 percent from $159.9 million in 2011s first quarter.
We are off to a solid start in 2012, despite a sluggish global economic environment, particularly in Europe and China, said Michael Barry, chairman, CEO and president of Quaker Chemical. However, we continue to benefit from the ongoing recovery of manufacturing in North America, additional new business, and our recent acquisitions.