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ETHYL REPORTS HIGHER SECOND-QUARTER RESULTS

 RICHMOND, Va., July 19 /PRNewswire/ -- Ethyl Corporation (NYSE: EY) today reported higher net income and earnings per share for the second quarter and first six months of 1993 compared to the corresponding periods in 1992. Stronger chemicals operating results and higher realized investment gains by Ethyl's former subsidiary, First Colony Corporation (NYSE: FCL), both contributed to the improvement.
 Net income for the second quarter of 1993 was $75.8 million or 64 cents a share, up 46 percent and 45 percent, respectively, from second-quarter 1992 net income of $52 million, or 44 cents a share.
 For the first six months of 1993, net income was $147.6 million, or $1.25 a share, representing an increase of 47 percent from six-month 1992 net income of $100.3 million, or 85 cents a share, restated to include a nonrecurring after-tax charge of $14.4 million, or 12 cents a share, for the cumulative effect of accounting changes related to postretirement benefits and deferred income taxes adopted as of Jan. 1, 1992.
 Ethyl's 1993 second-quarter earnings, excluding insurance, were $30.8 million, or 26 cents a share, up 78 percent and 73 percent, respectively, from 1992 earnings of $17.3 million, or 15 cents a share. On a similar basis, six-month 1993 earnings were $57.1 million, or 48 cents a share, representing an increase of 31 percent and 30 percent, respectively, from the prior year excluding the nonrecurring charge for the accounting changes.
 Ethyl said its 1993 results from continuing operations reflect improved chemicals operating profits in both periods coupled with reductions in interest expense due to lower average debt compared to 1992. Earnings for 1993 also include a second-quarter net credit to income of approximately $1 million before taxes consisting of a gain of about $5.9 million on the sale of a financial services subsidiary, which was substantially offset by a special charge of $4.9 million covering relocation costs for additional Ethyl Petroleum Additives R&D employees to be transferred to Richmond in 1994 and for costs related to a discontinued engineering project.
 On July 1, 1993, Ethyl distributed its approximately 80-percent interest in First Colony Corporation in the form of a tax-free stock dividend to Ethyl shareholders. Accordingly, First Colony's revenues and earnings are included in Ethyl's reported results as discontinued operations. Ethyl's interest in First Colony prior to the distribution contributed $45 million after taxes, or 38 cents a share, to its second quarter 1993 results, or an increase of 30 percent, compared to a second-quarter 1992 earnings contribution of $34.7 million, or 29 cents a share, representing Ethyl's then-100-percent interest in First Colony's earnings. For the first six months of 1993, First Colony contributed $90.5 million after taxes, or 77 cents a share, to Ethyl's six-month results, representing an increase of 27 percent from a six-month 1992 earnings contribution of $71.5 million, or 60 cents a share. The increase in insurance earnings primarily reflects higher realized investment gains.
 Ethyl's total revenues for the second quarter of 1993 amounted to $873 million, up 32 percent from $659.9 million, in the second quarter a year ago. For the first six months of 1993, total revenues were $1.7 billion, representing an increase of 27 percent from $1.34 billion in the prior-year period. Chemicals net sales in 1993 increased 32 percent for the quarter and 26 percent for the first six months compared to 1992. Insurance revenues for 1993 increased 32 percent for the quarter and 28 percent for the six-month period versus the prior year.
 Bruce C. Gottwald, president and chief executive officer of Ethyl, said: "Second-quarter chemicals operating profit before the special charge reflected significant improvements in lubricant and other fuel additives results as well as in antiknocks. Continued weakness in alpha olefins and polysilicon affected results for the quarter and the six- month period. The insurance profit contribution continued to be influenced by realized investment gains due to involuntary bond calls and redemptions."
 -0- 7/19/93
 /CONTACT: A. Prescott Rowe, 804-788-5413, or Robert P. Buford IV, 804-788-5494, both of Ethyl Corporation/
 (EY FCL)


CO: Ethyl Corporation; First Colony Corporation ST: Virginia IN: CHM SU: ERN

KD-MH -- DC006 -- 2943 07/19/93 09:47 EDT
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Publication:PR Newswire
Date:Jul 19, 1993
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