Higher production costs cut Q2 earnings at Lubrizol

U.S.-based Lubrizol Corp., a specialty chemical company, said second-quarter earnings dropped 5% as higher raw-material and manufacturing costs, reduced foreign-exchange gains and higher taxes undercut revenues. Profit for the quarter was US$191.3 million, down from US$201.4 million during the same period a year ago, despite higher revenues, which were up 17% to US$1.63 billion. Gross margin fell to 30.7%, from 33.8%.The latest results included merger-and-restructuring charges of 1 cent a share. Lubrizol is to be acquired by Berkshire Hathaway Inc. in a US$9 billion deal. This merger is projected to be finalized in approximately three months. (July 27, 2011)