Innospec Inc. announced unaudited consolidated earnings results for the second quarter and six months ended June 30, 2018. For the quarter, the company reported net sales were $358.1 million against $326.3 million a year ago. Operating income was $28.3 million against $33.5 million a year ago. Income before income taxes was $29.5 million against $34.8 million a year ago. Net income was $21.8 million against $26.1 million a year ago. Diluted earnings per share were $0.89 against $1.06 a year ago. Adjusted EBITDA was $43.7 million against $48.9 million a year ago. Adjusted non-GAAP income before income taxes was $32.7 million against $38.7 million a year ago. Adjusted non-GAAP net income was $24.4 million against $28.7 million a year ago. Adjusted non-GAAP diluted earnings per share were $1 against $1.16 a year ago. Net cash provided by operating activities in the quarter was $2.3 million, compared to $9.0 million a year ago. Capital expenditure of $6.7 million included investment in new plant for Drag Reducing Agents.

For the six months, the company reported net sales were $718.8 million against $620.6 million a year ago. Operating income was $57.2 million against $58.8 million a year ago. Income before income taxes was $59.2 million against $58 million a year ago. Net income was $44 million against $43.3 million a year ago. Diluted earnings per share were $1.79 against $1.76 a year ago. Adjusted EBITDA was $87.6 million against $88.1 million a year ago. Net cash provided by operating activities was $0.3 million against net cash used in operating activities of $10.9 million a year ago. Capital expenditures were $10.5 million against $13.1 million a year ago.

The company anticipates improved cash generation in the second half of the year 2018.

For full year the company expected effective tax rate to be 26%.