02 May 2008 15:40 [Source: ICIS news]
TORONTO (ICIS news)--Lubrizol posted a 1.8% drop in its first-quarter total segment operating income as a decline in profit in its advanced materials business offset improved results in additives, the US-based producer said on Friday.
Lubrizol’s total segment operating income for the three months ended 31 March was $143.6m (€93.3m), down from $146.3m.
Overall revenues rose 14% to $1.23bn and net income was $73.6m, up from $71.3m in the 2007 first quarter.
Additives' operating income was $112.8m, up 12%, primarily due to higher volumes, favourable currency effects and the contributions from acquisitions completed in 2007.
Higher raw material and operating costs partially offset the good performance.
"Our performance [in additives] was attributable to the strength of our new products and technologies, which we believe contributed to our customers' success,” said CEO James Hambrick.
Operating income in Lubrizol’s advanced materials business fell 32% to $30.8m, mainly due to lower volumes and higher raw material costs.
“I am dissatisfied with the financial performance of advanced materials,” said Hambrick.
However, the company plans to improve that segment's performance through price increases, new product developments, complementary acquisitions and restructuring, he said.
($1 = €0.65)
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