Ethyl Corporation Announces 15% Price Increase
4 December 2000
Ethyl Corporation Announces 15% Price Increase
RICHMOND, Va.--Dec. 4, 2000--Ethyl Corporation has announced to its customers that it will raise prices by 15% in January 2001 for all products manufactured for passenger car and diesel engine motor oils.The petroleum additives industry faces significant investment in research and development to meet new product specifications required by auto and diesel engine manufacturers. These manufacturers have accelerated their requirements for next generation specifications even before the latest new products can be qualified and introduced into the market. Oil-based raw material costs have continued to increase, compressing margins even further, while selling prices have not kept pace with these cost increases.
Like all petrochemical segments, the petroleum additives industry has responded to the normal cycle of supply and demand. Ethyl is well positioned to provide quality crankcase products, which are in short supply, to meet the needs of its customers. This price increase will allow Ethyl to improve its return on the substantial investment required to provide its customers around the world with the superior products and services they need.
Some of the information contained in this press release constitutes forward-looking comments within the meaning of the Private Securities Litigation Reform Act of 1995. Although Ethyl's management believes its expectations are based on reasonable assumptions within the bounds of its knowledge of its business and operations, there can be no assurance that actual results will not differ materially from expectations. Factors that could cause actual results to differ from expectations are included in Ethyl's latest annual report to shareholders, which is available upon request.