Lubrizol profit jumps 4%

Specialty chemicals maker Lubrizol Corp., which is being bought by Berkshire Hathaway Inc., said its first-quarter profit rose 4%, helped largely by higher selling prices. Separately, Berkshire Hathaway said it may sue David Sokol, a former Berkshire executive, for questionable purchases of Lubrizol shares before the company agreed to buy Lubrizol for US$9 billion. The buyout is scheduled to close in the third quarter. For the first quarter, Lubrizol posted a net income of US$169.5 million, or US$2.57 per share, compared with US$163.3 million, or US$2.32 per share, a year ago. Excluding charges related to the Berkshire deal, Lubrizol earned US$2.71 per share. Revenue rose 16% to US$1.52 billion. Wickliffe, Ohio-based Lubrizol said product prices and volumes both rose during the period. Rising crude oil costs posed a challenge, however, the company said. (April 28,2011)