NewMarket (NYSE: NEU) is a company that works in the petroleum industry. The Company has two segments: petroleum additives, which manufactures specialty chemicals for oil production, and real estate development, which leases office buildings. The subsidiaries of the company include Afton, Ethyl, NewMarket Services, and NewMarket Development. Major shifts in the external environment include the increasing obsolescence of leaded gasoline and the severely fluctuating oil prices.
The major source of growth from 2009 to 2010 was twofold: increases in Afton sales and higher total product shipments, primarily lubricant additives. Sale prices were also up over the previous year, strengthening revenues. Net income grew due to the strength of a recovering market and lower operating costs.
NewMarket's Ethyl subsidiary still produces leaded gasoline with tetraehtyl lead in the U.S. and international markets, but sales of leaded gasoline have dropped to less than 1% of NewMarket's overall revenues. As a result, the company plans to discontinue its Ethyl segment in the future as leaded gasoline is becoming obsolete.
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NewMarket competes with chemical companies that produce petroleum additives used to improve the performance of gas, diesel, and other fuels and as a lubricant in motor oil, fluids, and grease.