HOUSTON (ICIS)--NewMarket reported net income for Q1 2014 of $57.5m, a 15% drop year over year from $67.8m, due to higher costs, according to earnings results the US-based additives producer released on Wednesday.
Net sales for the company were $576m in Q1 2014, a 2.9% increase over last year's Q1. Costs rose 5.9% year on year, causing a 3.6% drop in gross profit for Q1 2014 to $162m from $168m.
Effective tax rates also rose to 31.4% in Q1, up from 27.6%. Last year's tax rate included the effects of a research and development (R&D) tax credit, but this year's Q1 did not. Taxes in Q1 2014 were $26.3m, up from $25.5m in Q1 2013.
NewMarket's petroleum additives sales for Q1 were $574m, up 2.8% year on year, and shipments rose 5.9% from the year-prior period. Petroleum additives operating profit was $96.2m, 5.7% lower than last year's $102m.
The operating profit margin for Q1 was 16.8%, while the margin for the four quarters ended 31 March was 16.2%. Both amounts were in line with long-term expectations, NewMarket said.