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Lubrizol Raises 2009 Earnings Outlook

The Associated Press

CLEVELAND (AP) — Specialty chemical maker Lubrizol Corp. on Thursday raised its outlook for 2009 earnings above Wall Street expectations.

The company said it expected to earn $3.83 to $4.23 per share. Excluding restructuring and impairment charges, the company set a target of $3.95 to $4.35 per share, compared with $4.09 per share last year.

Analysts usually exclude charges from their calculations, and they were expecting the company to earn $3.85 per share for all of 2009.

In February, Lubrizol said it expected full-year earnings after charges to be $3.60 to $4 per share, which was below Wall Street targets at the time. The company had said it expected sales volumes to hit their lowest levels in nearly 30 years, as the recession weakens demand for chemicals.

Chief Executive James Hambrick said Thursday the company was "cautiously optimistic that 2009 could represent another year of earnings growth," but warned that demand for the company's products was beyond its control.

The CEO said the company had reacted early to the global economic slowdown and managed its plants to be cost-effective at lower production.

Also Thursday, the company reported that first-quarter profit fell to $64.2 million, or 95 cents per share, compared with $73.6 million, or $1.06 per share, a year ago, as revenue declined 18 percent.

Shares rose $1.52, or 3.6 percent, to $43.74 in midday trading.