Ethyl Reports Improved Profits


Ethyl Corp. reported that its petroleum additive segments operating profits for the quarter and half-year ending June 30, excluding nonrecurring items, were up 34 percent and 31 percent compared to the same periods last year. These results represent the best first-half petroleum additive results since 1999, the company said.

Ethyl’s net income for the second quarter of 2003 was $5.7 million, or 34 cents per share. This compares to $0.8 million or 5 cents per share for the same period last year, excluding nonrecurring items and discontinued operations. When those nonrecurring items are included, this years net income compares to a net loss of $2.5 million or 14 cents per share in the second quarter last year.

The Richmond, Virginia-based additive company reported net sales of $180.6 million in the second quarter, up from $170.0 million in the same period a year ago.

Profit improved in all of our major petroleum additive product lines compared to the first half of last year, Ethyl President and CEO Teddy Gottwald said. Pricing improved somewhat in an effort to recover increasing cost of raw materials. Research, development and testing costs were also higher … [and] … [t]he results also reflect favorable production costs including an increase in certain inventory levels, as well as favorable foreign exchange impact.

The company also noted that earnings benefited from lower interest expense. Ethyl reduced debt by $34.3 million in the first half of this year, including the utilization of $27 million from the sale of its phenolic antioxidant business in January.

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