Lubrizol Profit Falls On Lower Chemical Sales

CLEVELAND (AP) — The Lubrizol Corp. said Thursday that its first-quarter profit fell on an 18 percent drop in sales as demand for specialty chemicals weakened in the recession.

The earnings still beat expectations and its shares rose more than 3 percent.

The company said it earned $64.2 million, or 95 cents per share, for the three months ended March 31 compared with $73.6 million, or $1.06 per share, a year ago.

The 2009 results included after-tax restructuring charges of $7.6 million, or 11 cents per share. Without the charge, Lubrizol would have earned $1.06 a share in the quarter.

That was well above the average estimate of analysts surveyed by Thomson Reuters. They expected earnings of 97 cents a share and usually exclude one-time items from their calculations.

Revenue fell to $1.01 billion from $1.23 billion a year ago. The company blamed lower volume and unfavorable currency exchanges. Analysts expected sales of $1.15 billion.

The Wickliffe, Ohio-based company said the lower sales led to the failure to absorb manufacturing costs. The company also had higher interest expenses and lower interest income.