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ETHYL REPORTS HIGHER 1992 RESULTS

 RICHMOND, Va., Jan. 21 /PRNewswire/ -- Ethyl Corporation (NYSE: EY) today reported that net income for the year 1992 was $255 million, or $2.15 per share, up 23 percent from 1991 net income of $206.7 million, or $1.75 per share. The increase was attributable almost entirely to realized investment gains at First Colony Life Insurance Company and to Ethyl's gain on the sale of about 20 percent of its investment in First Colony Corporation in December 1992. The report is based on preliminary figures.
 For the fourth quarter, 1992 net income was $83.4 million, or 70 cents a share, an increase of 73 percent and 71 percent, respectively, from 199n?et income of $48.3 million, or 41 cents a share.
 After-tax realized investment gains by First Colony were $55.6 million, or 47 cents a share, vs. $15.6 million, or 13 cents a share, in 1991. For the fourth quarter, realized gains in 1992 were $14.1 million, or 12 cents a share, vs. $6.8 million, or 5 cents a share, in the 1991 period. The higher gains were due primarily to bond calls and redemptions prior to their maturity as a result of prevailing low interest rates.
 Fourth-quarter and full-year 1992 results benefited from an after-tax gain of $30.2 million, or 26 cents a share, resulting from the sale of approximately 20 percent of Ethyl's investment in its wholly owned subsidiary, First Colony Corporation (NYSE: FCL), which owns First Colony Life Insurance Company of Lynchburg, Va. The gain was offset partially by an after-tax charge of $6 million, or 5 cents a share, for estimated relocation and related costs in connection with the future transfer of R&D employees from St. Louis, to Richmond, when Ethyl Petroleum Additives' new research facilities are completed in mid-1994.
 Ethyl elected to adopt two new accounting rules, FASB No. 106 and No. 109, related to post-retirement health benefits and deferred income taxes, in the fourth quarter of 1992, resulting in a net non-cash charge of $17.1 million after taxes, or 14 cents a share. Although the accounting changes were adopted in the fourth quarter, the effect on earnings is required to be applied retroactively to the beginning of 1992, which will result in financial statements for the first three quarters being restated. Most of the charge to earnings will be reported in first-quarter 1992 restated results.
 Included in 1991 earnings are special charges totalling $7 million, or 6 cents a share, consisting of a fourth-quarter after-tax charge of $4 million, or 3 cents a share, resulting from discontinuance of certain developmental research programs and a second-quarter after-tax charge of $3 million, or 3 cents a share, for relocation expenses of the Petroleum Additives Division headquarters in 1992.
 Excluding the effects of the non-recurring gain in 1992, the special charges in 1992 and 1991, accounting changes in 1992 and realized investment gains, earnings for the year 1992 would be 3 percent below 1991 income. On the same basis, fourth-quarter 1992 earnings would be essentially level with 1991 income for the same period.
 Chemicals operating profit for the fourth quarter and year 1992, excluding the effects of special charges and accounting changes, declined 1 percent and 5 percent, respectively, from 1991, while insurance segment income, excluding realized investment gains, for the fourth quarter and the year 1992 was ahead of 1991 by 32 percent and 14 percent, respectively.
 For the year 1992, total revenues amounted to $2.98 billion, an increase of 16 percent from $2.57 billion a year earlier. Total revenues in the fourth quarter of 1992 were $843 million, up 28 percent from $657.9 million in the fourth quarter of 1991. Chemicals net sales for 1992 increasedr and 38 percent for the fourth quarter.
 Bruce C. Gottwald, president and chief executive officer of Ethyl, said: "Chemicals operating results for the fourth quarter of 1992, before inclusion of special items, reflects continued unfavorable results in alpha olefins. Performance Products, including flame retardants, showed improved results for the quarter and the year. Although HiTEC 3000 performance additive (MMT) profit was down for the fourth quarter and the year, overall antiknock results were slightly favorable in both periods. Lubricant and fuel additives showed
improvement over last year's fourth quarter. We continue to be pleased with the favorable effect of the Amoco Petroleum Additives acquisition. Ethyl is extremely pleased with results in its Insurance Segment, which continues its long- established trend of increased earnings."
 -0- 1/21/93
 /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 INS SU: ERN

TW -- DC006 -- 7300 01/21/93 10:17 EST
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Date:Jan 21, 1993
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