The industrial lubricants sector was good to both Lubrizol Corp. and Milacron Inc. during the first quarter of 2003. In Lubrizols case, a 38 percent jump in revenue from its Fluid Technologies for Industry segment fueled an 18 percent improvement in the companys consolidated earnings, compared to the first quarter of 2002. Milacron, meanwhile, enjoyed a 12 percent increase in sales revenue from its industrial fluids business.
Lubrizol reported Thursday that its overall consolidated earnings for the first quarter were $26 million, up from $22 million during the same period a year earlier. The increasecame from growthin the Fluid Technology for Industry segment, which recorded a 38 percent increase in sales revenue, to $110.5 million, boosting segment earnings to $20.6 million. Management said the improvement stemmed partly from the purchase of several businesses last year, but that revenues grew 12 percent even excluding acquisitions. Products within the segment grew faster than their industries served, with particular success in new additives for metalworking fluids, inks and coatings.
In Lubrizols other principal segment, Fluid Technologies for Transportation,revenues rose 2 percent to $390.5 million, thanks to a shift from liquid to more concentrated and higher value viscosity modifiers. The segments contribution to income dipped 2 percent to $74.5 million because of higher costs for materials and energy. Management said it is optimistic about the segments prospects for GF-4, the next passenger car motor oil upgrade, as it has received favorable feedback on its approach to the specification.
The $26 million in consolidated earnings translated to 50 cents per share, up from 43 cents per share for the first quarter of 2002. Earnings would have been 55 cents per share, had it not been for a one-time cost — $3.5 million in the first quarter of this year to restructure a plant in Bromborough, England.
Milacron reported April 23 that its industrial fluids business had first quarter sales of $25.3 million, up from $22.5 million in the year-ago period. The company cited improvements in its automotive, appliances and industrial components markets. Earnings for the fluids business dipped from $3. 8 million to $3.5 million, due to higher energy-related costs.