Profit Up for Lubrizol, Afton in Q2


Lubrizols additives segment and New Markets Afton Chemical additives subsidiary each saw an improvement in operating profit for the quarter ending June 30, compared to the year-ago quarter.

Lubrizol Additives
Lubrizols additives segment reported operating income of $221.2 million for the second quarter, up 81 percent from $122.2 million in the year-earlier period.

The Wickliffe, Ohio-based companys additives segment reported $802.8 million in revenue in the second quarter, down 15 percent from $945.6 million in 2008s second quarter.

Lubrizol CEO James Hambrick cautioned that the economic environment remains challenging and the timing for significant recovery of the companys end markets is uncertain. If we achieve stronger volume recovery in the second half of this year, we may have the opportunity for further upside in earnings, Hambrick said. But given the volatility in business conditions we experienced in the fourth quarter of last year, we also recognize how quickly the drivers of our business can change.

As a whole, Lubrizol posted operating income of $131.9 million on revenues of $1.1 billion in the second quarter, or $1.92 per diluted share.

Afton Chemical
Afton Chemical posted a $67.6 million operating profit for the quarter ending June 30, up 114 percent from $31.6 million in the year-earlier period. The company said the increase reflected strong improvement across all product lines.

NewMarkets petroleum additives segment, Afton Chemical, posted $368.2 million in revenue for the second quarter, down 12.5 percent from $421 million in the year-ago period. The company said that while shipments for the second quarter were 18 percent lower than in the year-earlier period, they did represent a 16 percent improvement from this years first quarter as the market rebounded.

Our volumes continued to improve throughout the second quarter, said Thomas Gottwald, president and CEO of Afton parent New Market. Shipments in June approached the level that was typical before the market slowdown. Our plants are now running at very high rates, raw material costs are beginning to increase, and we are experiencing some tightness in raw material availability.

Richmond, Va.-based NewMarket recorded $30.7 million in overall net income, or $2.01 per share in the second quarter, up 74.4 percent from $17.6 million in net income, or $1.13 share in 2008s second quarter.

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