The Richmond, Virginia-based additive supplier attributed the improved operating performance to cost savings. Net sales actually fell from $707.6 in 2001million to $656.4 million in 2002, but costs also dropped due to better use of assets, more efficient research and development, and other steps, officials said.

The company said that sales in its core engine oil additives business stabilized during 2002, while sales of other petroleum additives grew 12 percent. Excluding nonrecurring items, operating profit for continuing operations of the petroleum additives segment rose 60 percent to $52.4 million, the highest level in three years. Profits from all of the segments major product lines improved over 2001.

Sales and earnings from tetraethyl lead continued to decline, mirroring the trend for worldwide demand for the product.

Officials said they were also pleased to have reduced Ethyls debt almost 16 percent, to $290 million at year end. Most of that amount is due next month, but the company said it has already met conditions to receive a one-year extension, which it expects to be granted March 1.

President and Chief Executive Officer Thomas E. Teddy Gottwald said Ethyl remains concerned about certain aspects of the global economy but expects profits to rise again in 2003.

Milacron, of Cincinnati, Ohio, reported yesterday that its Industrial Fluids segment contributed operating earnings of $14.4 million last year, down from $18.1 million in 2001. The business, which is one of the worlds largest suppliers of metalworking fluids, did see sales rise to $96 million, up from $92.8 million the year before. New orders climbed from $92.9 million to $96 million.