27 April 2011 22:49 [Source: ICIS news]
HOUSTON (ICIS)--US-based lubricant additive producer Lubrizol reported on Wednesday a first-quarter net income of $169.5m (€115.3m), up 4.4% from $162.3m reported for the same time last year.
First-quarter revenues were $1.52bn, up from $1.32bn reported for the same time last year.
Lubrizol attributed the increase to higher prices, higher volumes and a better product mix.
Cost of sales was $1.34bn, up from $864.8m for the same time last year. Lubrizol attributed the increase to higher feedstock costs and manufacturing costs. The higher manufacturing costs were associated with higher sales volumes.
In addition, Lubrizol spent more on selling, testing administrative and research expenses.
By segment, additives reported an operating income of $259.9m, up from $246.4m for the same time last year. Advanced materials reported $71.1m, up from $60.6m for the same time last year.
Looking forward, Lubrizol expects raw material costs to continue increasing for both its additives and advanced materials segment.
Lubrizol did not alter the volumes forecast for its additives segment despite automobile disruptions caused by the earthquake in Japan.
Lubrizol is being acquired by Warren Buffett's Berkshire Hathaway for $9.7bn. The deal should close by the third quarter.
($1 = €0.68)
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