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 RICHMOND, Va., Oct. 20 /PRNewswire/ -- Ethyl Corporation (NYSE: EY) today reported lower net income and earnings per share for the third quarter and nine months of 1993 compared to 1992. However, excluding earnings of First Colony Corporation (NYSE: FCL), which was spun off by Ethyl at mid-year 1993, and non-recurring charges, third-quarter and nine-month 1993 income from continuing operations was favorable compared to the prior-year periods.
 Third-quarter 1993 earnings, excluding non-recurring charges, were $29.8 million, or 25 cents a share, up 34 percent and 32 percent, respectively, from 1992 earnings from continuing operations of $22.3 million, or 19 cents a share. On a similar basis, nine-month 1993 earnings were $87 million, or 73 cents a share, representing an increase of 32 percent and 30 percent, respectively, from prior-year earnings of $65.8 million, or 56 cents a share. Ethyl said the improvement in its 1993 results reflects higher chemicals operating profits in both periods coupled with reductions in interest expense due to lower average debt compared to 1992.
 Non-recurring charges in the third quarter and nine months of 1993 totaled $9.8 million after taxes, or 8 cents a share. These charges consist of a $6-million after-tax charge covering the recently announced early-retirement and work-force-reduction program as well as higher deferred income taxes of $2.3 million required by FASB No. 109 and additional taxes of $1.5 million on first-half earnings of Ethyl's spun- off insurance business. The higher tax charges result from the recently passed Federal income tax legislation, which increased the corporate income tax rate retroactive to Jan. 1, 1993. Nine-month 1992 earnings included a non-recurring after-tax charge of $14.7 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.
 After inclusion of the earnings of First Colony while part of Ethyl and non-recurring charges, net income for the third quarter of 1993 was $20 million, or 17 cents a share, compared to third-quarter 1992 net income of $71.3 million, or 60 cents a share. For the first nine months of 1993, net income was $167.6 million, or $1.42 a share, vs. $171.5 million, or $1.45 a share, for the prior year.
 First Colony's earnings are included in Ethyl's reported results as a discontinued operation. Ethyl's interest in First Colony prior to the July 1, 1993, spin-off contributed $90.4 million after taxes, or 77 cents a share, for the first six months of 1993. For the third quarter of 1992 and nine months of 1992, First Colony contributed $49 million, or 41 cents a share, and $120.4 million, or $1.01 a share, respectively, to Ethyl's reported 1992 results.
 Chemicals net sales for the third quarter of 1993 amounted to $487 million, up 6 percent from $461 million in the third quarter a year ago. For the nine months of 1993, chemicals net sales were $1.45 billion, an increase of 19 percent from $1.22 billion in the prior-year period.
 Bruce C. Gottwald, president and chief executive officer of Ethyl, said: "Third-quarter 1993 operating results, excluding non-recurring charges, reflected improvements in antiknocks, lubricant additives and olefins and derivatives. Results for the first nine months included improvements in lubricant and other fuel additives as well as antiknocks but reflected weakness in alpha olefins during the first half of this year and continued weakness in polysilicon. The after-tax charge taken against 1993 earnings to cover the cost of the early-retirement and work-force-reduction program should result in Ethyl realizing annual after-tax savings of approximately $10 million. This is a significant step in our corporate restructuring effort."
 -0- 10/20/93
 /CONTACT: A. Prescott Rowe, 804-788-5413, or Robert P. Buford IV, 804-788-5494, both of Ethyl Corporation/

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

MH -- DC014 -- 4442 10/20/93 09:47 EDT
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Publication:PR Newswire
Date:Oct 20, 1993

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