Ethyl Corp. said that its second quarter earnings from continuing operations dropped 73 percent, to $1.4 million, or 9 cents per share. Decreased earnings from sales of the tetraethyl lead gasoline additive outweighed a 26 percent increase in operating profit from the petroleum additives segment.
Including non-recurring expenses – principally losses from impairments or sale of non-performing assets – Ethyl lost $2.5 million for the period ended June 30. The Richmond, Va., company posted a net loss of $94.8 million during the same period of 2001, thanks to $99.9 million in non-recurring expenses, including $88.2 million in excise taxes stemming from closure of a pension program.
President and Chief Executive Officer Thomas E. Teddy Gottwald said the company, after consolidating last year, is striving to become a smaller, more profitable business. The new strategy focuses on the petroleum additives segment, since tetraethyl lead is being phased out around the world.
We are extremely pleased with the progress on our goal of improving the profitability in our petroleum additives business, he said. [T]he entire Ethyl team is making steady gains in generating profitable growth opportunities. The actions we have taken and the strategies in place position us to continue this progress.
The petroleum additives segment had slightly lower sales during this years second quarter – down from $175.5 million to $172.5 million – but benefited from a 20 percent cut in costs of goods sold. The segments profit from recurring operations rose from $10.6 million to $13.3 million. According to Gottwald, operating profits improved for all major product lines and in almost all geographic regions.
Ethyl also said that it paid off $12.6 million in debt during the quarter. The company now has $298 million of long-term debt due March 31 but hopes to extend the payment period before that date.