Article Abstract:
Ethyl Corp's (EY) stocks plummeted after the Environmental Protection Agency (EPA) ruled against its petition to market HiTEC 3000, a manganese-based gasoline additive. The Virginia-based insurance provider and maker of industrial and petrochemicals refutes the finding that the new product is an air pollution hazard. EY Pres Bruce C. Gottwald asserts that HiTEC 3000, when combined with unleaded gasoline is cost-effective and emits less pollutants. The decision further aggravated EY's financial position, which reported lower 1991 earnings from $232 to $207 million. This marked a 21% decrease in earnings from the chemical division, which was offset by a 12% increase in the insurance segments.
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Article Abstract:
Aircraft engine manufacturer Heico Corp's January first-quarter sales dropped to $5.4 million from $6.3 million, reducing its earnings to $246,000 (11 cents a share) from $549,000 (21 cents). The company attributes its loss to its MediTek Health Corp.'s startup costs, its Jet Avion division's low demand and current litigation expenses amounting to at least $100 million. Chmn and CEO Laurans Mendelson expressed optimism over Jet Avion's improved profits despite a low demand for engine spare parts in the airline industry. Heico launched a stock repurchase program in 1990 and has since recovered one million shares.
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MGIC Investment Corp's (MGIC) maintains its Buy rating, after registering a 35% increase in transactions in 1991, with operating costs only up by 15%. Analysts also cite the consistent quarterly volume growth in 1991. The Milwaukee-based mortgage insurer's excellent performance is attributed to increased demand for insurance, lower house prices, relaxed regulations, financial support and tax relief. Robert W. Baird Co increases earnings estimates from $2.68 to $3 for 1992 and $3.50 in 1993.
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