NewMarket Corporation (NYSE:NEU) Q4 2018 Earnings Conference Call Transcript
Feb 07, 2019 • 03:00 pm ET
Good day, ladies and gentlemen, and welcome to the NewMarket Corporation Conference Call and Webcast to review Fourth Quarter 2018 and Year-End financial results. All lines have been placed on listen-only mode. (Operator Instructions)
At this time, it's my pleasure to turn the floor over to your host, Brian Paliotti. Sir, the floor is yours.
Brian D. Paliotti
Thank you, Angelica, and thanks to everyone for joining us this afternoon. With me today is Teddy Gottwald, our Chairman and CEO.
As a reminder, some of the statements made during this conference call may be forward-looking. Relevant factors that could cause actual results to differ materially from those forward-looking statements are contained in our earnings release and in our SEC filings, including our most recent Form 10-K.
During this call, we may also discuss non-GAAP financial measures included in our earnings release. The earnings release, which can be found on our website, includes a reconciliation of the non-GAAP financial measures to the comparable GAAP financial measure. We intend to file our 2018 10-K towards the middle of February. It will contain significantly more details on the operations and performance of our Company. Please take time to review it. I will be referring to the data that was included in last night's release today.
Now onto the fourth quarter results. Our profit before tax was $71.1 million, a 9.5% increase, compared to the profit before tax for the fourth quarter of 2017 of $64.9 million. With the Tax Reform Act on the quarterly earnings per share numbers, this profit before tax number is a good way to compare our periods.
The next set of numbers I'll mention does include the impact of the Tax Reform Act. Net income for the fourth quarter of 2018 was $62.8 million, or $5.58 per share, compared to net income of $4.1 million, or $.35 per share for the fourth quarter of 2017. Income tax expense was $8.3 million for the fourth quarter of 2018, compared to $60.9 million for the fourth quarter of 2017, and $55.6 million for 2018, compared to $124.9 million for 2017.
The main driver for the difference between the comparative periods was the additional income tax expense in the fourth quarter of 2017 of $31.4 million related to the enactment of the Tax Reform Act, primarily due to a one-time deemed repatriation tax on untaxed accumulated foreign earnings. In addition, the Tax Reform Act reduced the US corporate tax rate to 21% beginning in 2018.
Petroleum additives operating profit for the quarter was $79.5 million, up 7.2% versus the fourth quarter of 2017. Sales for the quarter were $537 million, down 3.5%, compared to the sales for the same period last year, primarily due to lower shipments, which were down 10.2%, compared to the same period last year. Shipments decreased -- shipment decreases were in both lubricant additives and fuel additives. All regions except Asia-Pacific, which was the decrease in lubricant additive shipments; and Latin America was the only region reporting an increase in fuel additive