The lubes giant reported a slip in year-on-year Q2 profits, with net profits of $191 million, compared to $201 million in 2010. However, despite being lower than some analysts' expectations, earnings per share were up to $2.90 against $2.88 last year and revenue improved from $1.4bn to $1.63bn year on year, helped by pricing, product mix and favourable exchange rates.
The lower Q2 figures meant a virtually flat first half compared to 2010, with consolidated earning almost unchanged at $360m. Income from both the Additives and Advanced Materials divisions have shown improvement so far this year.
The short-term profit reduction has not affected Lubrizol's plans to expand its operations, particularly in China, with the company announcing its intention to increase testing capacity by building a new research and development centre in Zhuhai.
The laboratory will offer additive and lubricants blending, physical and chemical analysis, as well as performance testing. Phil Shore, Lubrizol vice president of testing, believes the new facility will allow the company to “improve quality and efficiency on a highly global scale.”
Last year, Lubrizol announced the construction of a new lubricant additive production facility in the Zhuhai Gaolan Port Economic zone, just 20 miles of the Jilin University campus, the site of the new plant and the organisation expects a close working relationship between the two facilities and also with its joint venture Lanzhou Lubrizol Lan Lian Additive Co. Ltd.
The company also revealed expansion plans for its US production plant in Louisville, Kentucky. The plant, which began operations in 1961, manufactures Lubrizol's TempRite® chlorinated polyvinyl chloride (CPVC) products. The expansion work is expected to be completed in 2012.
Published 4th August, 2011
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