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100 Low Lead availability - cont.



 
 
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Old March 3rd 08, 11:22 PM posted to rec.aviation.soaring
Bill Daniels
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Posts: 687
Default 100 Low Lead availability - cont.

This is a continuation of the earlier thread about tow plane fuel.

From AVWEB February 11, 2008:

Tetra-Ethyl Lead

If I had an aircraft that required 100LL, I would read every report from
Innospec, the only manufacturer of tetra-ethyl lead (TEL). Here is a quote
from their 2007 third quarter report, available on their Web site:


"In Octane Additives, operating income for the third quarter was $2.3
million, compared with $10.3 million a year ago. The gross profit margin was
50.6 percent, compared with 55.7 percent a year ago. Revenues of $16.2
million were down 49 percent from a year ago. The reduced results in Octane
Additives primarily reflect a shift in certain shipments from the third to
the fourth quarter, as well as the continuing longer-term decline in the
tetra ethyl lead business."

The report also shows that Octane Additives sales were $16.2 million out of
a total revenue of $143 million, about 11 percent.

Given the declining sales, declining profit margin and the large costs to
decommission a [TEL] manufacturing facility, if you were in charge, how long
would you continue production?

Angus J. McCamant



What's the alternate fuel situation for Pawnee's?



Bill Daniels


 




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