ETHYL REPORTS HIGHER FIRST-QUARTER RESULTS
RICHMOND, Va., April 16 /PRNewswire/ -- Ethyl Corporation (NYSE: EY) today reported higher net income and earnings per share for the first quarter of 1993 compared to 1992. The increase reflects higher realized investment gains by First Colony Life Insurance Company and the inclusion in first-quarter 1992 earnings of a non-recurring charge for the cumulative effect of accounting changes adopted as of Jan. 1, 1992. Net income for the first quarter of 1993 was $71.9 million, or 61 cents a share, up 49 percent from first-quarter 1992 net income of $48.3 million, or 41 cents a share, restated to include the cumulative effect of accounting changes related to postretirement benefits and deferred income taxes adopted as of Jan. 1, 1992. The increase reflects higher realized investment gains by First Colony in 1993 and a non-recurring after-tax charge of $14.4 million, or 12 cents a share, for accounting changes recorded in 1992. Excluding the non-recurring 1992 charge for the accounting changes, the increase in first-quarter 1993 earnings and earnings per share from the prior year was 15 percent. Excluding the insurance earnings contribution, Ethyl's 1993 first-quarter earnings were $26.3 million, or 22 cents a share, essentially even with 1992 earnings excluding the non-recurring charge for the accounting changes. Chemicals 1993 operating results declined from the prior year, but the impact was about offset by a reduction in interest expense reflecting lower average debt compared to 1992. Ethyl's approximately 80-percent interest in First Colony Corporation (NYSE: FCL), which owns First Colony Life Insurance Company, contributed $45.6 million after taxes, or 39 cents a share, to its 1993 results, representing an increase of 24 percent and 26 percent, respectively, compared to a first-quarter 1992 earnings contribution of $36.8 million, or 31 cents a share, representing Ethyl's then 100-percent interest in First Colony's earnings. In December 1992, Ethyl sold in an initial public offering approximately 20 percent of its investment in First Colony Corporation. The increase in insurance earnings primarily reflects higher after-tax realized investment gains due mainly to premature calls in the bond portfolio and gains taken in the common stock portfolio. Total revenues in the first quarter of 1993 amounted to $829 million, up 22 percent from $679.6 million in the first quarter a year ago. Chemicals net sales and insurance revenues increased 21 percent and 24 percent, respectively, vs. 1992. Bruce C. Gottwald, president and chief executive officer of Ethyl, said: "First-quarter chemicals operating profit reflected continued weakness in alpha olefins. Ethyl's polysilicon business lagged last year's results, but our long-range outlook remains positive. Antiknock profits were below the prior year, as expected, due to lower shipments in the quarter. Lubricant and other fuel additive results were significantly ahead of last year.
Insurance profit contribution continues to meet Ethyl's objectives."
-0- 4/16/93 /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
TW -- DC008 -- 6651 04/16/93 10:05 EDT
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|Date:||Apr 16, 1993|
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