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SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
______________________
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
Date of Report (Date of earliest event reported) October 23, 1995
Ethyl Corporation
(Exact name of registrant as specified in its charter)
Virginia 1-5112 54-0118820
(State or other jurisdiction (Commission (IRS Employer
of incorporation) File Number) Identification No.)
330 South Fourth Street, Richmond, Virginia 23219
(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code (804) 788-5000
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Item 5. Other Events
On October 20, 1995, Ethyl Corporation issued a press release, a copy
of which is attached hereto as Exhibit 99.1, commenting on the decision of
the U.S. Court of Appeals for the District of Columbia Circuit ordering the
U.S. Environmental Protection Agency to register MMT for use as an additive
in unleaded gasoline as of November 30, 1993. Also on October 20, 1995,
Ethyl Corporation issued a press release, attached hereto as Exhibit 99.2,
which included its third quarter earnings and announced an anticipated
settlement with the U.S. Government by its subsidiary, Ethyl Petroleum
Additives, Inc.
Item 7. Financial Statements and Exhibits.
(c) Exhibits.
99.1 First Press Release, dated October 20, 1995.
99.2 Second Press Release, dated October 20, 1995.
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SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934,
the Registrant has duly caused this report to be signed on its behalf by
the undersigned thereunto duly authorized.
ETHYL CORPORATION
(Registrant)
Date: October 23, 1995 By: /s/ Wayne C. Drinkwater
Name: Wayne C. Drinkwater
Title: Controller
(Principal Accounting Officer)
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EXHIBIT INDEX
Exhibit Number and Description
99.1 First Press Release, dated October 23, 1995.
99.2 Second Press Release, dated October 23, 1995.
5 EXHIBIT 99.1
FOR IMMEDIATE RELEASE:
Richmond, Virginia, October 20 -- Ethyl Corporation
(NYSE:EY) today said a federal appeals court's unanimous
decision ordering the U.S. Environmental Protection Agency
(EPA) to register the company's manganese-based fuel additive
for use in unleaded gasoline retroactively to November 30,
1993, eliminates the last hurdle to commercial introduction of
the product in the U.S.
Bruce C. Gottwald, chairman of the board and chief
executive officer of Ethyl said: "The decision by the U.S.
Court of Appeals clears the way for HiTECr 3000 performance
additive (MMT) to be blended into U. S. unleaded gasoline and
begin contributing to a cleaner environment. We contend this
product has been properly registered all along and the court
has strongly agreed with our position."
Mr. Gottwald also noted: "The use of HiTECr 3000
performance additive will reduce nitrogen oxide emissions from
automobiles by 20 percent and carbon monoxide emissions by
five to six percent. Furthermore, use of Ethyl's additive
could reduce substantially U.S. refinery emissions by
increasing the efficiency of gasoline refining as well as
saving up to 30 million barrels of crude oil each year."
The U.S. Court of Appeals for the District of Columbia
Circuit in its October 20 written opinion said: "Because the
only barrier to Ethyl's registering MMT as an additive for use
in unleaded fuel before promulgation of the 1994 regulations
was lack of a Section 211(f)(4) waiver, as EPA counsel
acknowledged at oral argument, a complete remedy for Ethyl
requires that the registration be treated as taking effect on
approximately the date it would have occurred if EPA had acted
lawfully -- November 30, 1993."
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6 EXHIBIT 99.2
Richmond, Va., October 20 -- Ethyl Corporation (NYSE:EY) today
reported that net income for the third quarter of 1995 was $17
million, or 14 cents a share, compared to third-quarter 1994 net
income of $22.5 million, or 19 cents a share. However, excluding
special items for both periods, third-quarter 1995 earnings would have
increased 15 percent to $21.1 million, or 18 cents a share, compared
to third-quarter 1994 earnings of $18.3 million, or 15 cents a share.
For the first nine months of 1995, net income was $51.5 million, or
43 cents a share, compared to net income for the same period in 1994
of $73.1 million, or 62 cents a share. The 1994 results included two
months of earnings of the businesses spun off as Albemarle Corporation
(NYSE:ALB) at the close of business on February 28, 1994.
Third-quarter and nine-month 1995 net income included a provision
of about $4.1 million after tax, or four cents a share, to cover the
costs of an expected legal settlement by a subsidiary with the civil
division of the U.S. Department of Justice. The expected settlement
by Ethyl Petroleum Additives, Inc. (EPAI) is associated with EPAI
qualification issues prior to 1991 concerning two products sold for
use in government vehicles. EPAI brought the matter to the
government's attention in 1991 and assumed the matter had been
resolved. Third-quarter and nine-month 1994 net income included an
after-tax gain of approximately $4.2 million, or four cents a share,
from the sale of Ethyl's pharmaceutical business in September 1994.
Excluding the special items from both nine-month periods, earnings in
the first nine months of 1995 were down 11 percent compared to pro
forma (without the results of Albemarle) 1994 earnings.
Ethyl's net sales for the third quarter of 1995 were $241.7 million
compared to third-quarter 1994 sales of $244.9 million, a decrease of
one percent. However, excluding the prior-year revenues of the
pharmaceutical business, third-quarter 1995 net sales would have
increased five percent. Net sales for the first nine months of 1995
were $700.5 million, down from $910.1 million in 1994, which included
two months of sales of the spun-off Albemarle businesses as well as the
sales of the pharmaceuticals business. Ethyl's sales for the first
nine months of 1995 were down less than one percent compared with
nine-month pro forma 1994 sales excluding the prior-year sales of the
pharmaceuticals business.
Bruce C. Gottwald, chairman of the board and chief executive
officer of Ethyl, said: "The third-quarter and nine-month lead
antiknock results continue to be in line with our expectations, and
earnings from this business for the year are still expected to be
about even with 1994. Results from other refinery fuel additives were
well ahead of 1994 levels with similar results expected for the full
year. Third-quarter 1995 results for lubricant additives were below
previously expected levels, reflecting softer than anticipated market
demand and somewhat lower margins. If this trend continues, the
full-year lubricant additives earnings may be below 1994 results.
Other fuel additives results continue to be below 1994."
In regard to the expected settlement with the Justice Department,
Mr. Gottwald said: "There were no complaints concerning the
performance of EPAI's products during the period in question and
therefore we believe the amount is excessive. The Company, however,
is willing to accept such a settlement to avoid litigation."
Ethyl Corporation develops, manufactures and blends performance-
enhancing fuel and lubricant additives marketed worldwide to refiners
and others who sell petroleum products for use in transportation and
industrial equipment. Ethyl additives increase the value of gasoline,
diesel and heating fuels as well as lubricants for engines, automatic
transmissions, gear and hydraulic and industrial equipment.
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