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LUBRIZOL REPORTS THIRD QUARTER RESULTS

 LUBRIZOL REPORTS THIRD QUARTER RESULTS
 CLEVELAND, Oct. 26 /PRNewswire/ -- The Lubrizol Corporation


(NYSE: LZ) announced that consolidated revenues for the third quarter of 1992 which ended on Sept. 30 were $364.2 million, an increase of 1 percent over the same period last year. Specialty Chemicals shipments were equal to those of the third quarter of 1991.
 Consolidated net income was $19 million, or $.28 per share. Consolidated net income for the third quarter of 1991 was $28.8 million, or $.42 per share.
 For the first nine months of 1992, consolidated revenues were $1.2 billion, an increase of 8 percent over the same period last year. Consolidated net income was $107.9 million, or $1.56 per share. For the first nine months of 1991, consolidated net income was $91.8 million, or $1.32 per share. Specialty Chemicals shipments for the first nine months of 1992 were 13 percent above last year.
 Lubrizol repurchased 310,000 shares of common stock during the third quarter. The company has 1.7 million shares remaining on its share repurchase authorization.
 L.E. Coleman, chairman, said, "Our third quarter results are a disappointment. Offsetting the sales gains in the U.S., international Specialty Chemicals shipments declined 8 percent from last year's third quarter. Raw material, manufacturing and technology expenses have been increasing steadily. The technology costs continue to escalate due to growing complexity in essentially all of our market segments, and manufacturing costs associated with environmental compliance and monitoring are also increasing.
 "We are implementing price increases this quarter in all market segments in order to recover a portion of these increasing expenses. We are also intensifying our efforts to reduce spending which is not essential to support products and services to our customers. It is likely that the higher technology and manufacturing costs, along with a strengthening U.S. dollar, will continue to put pressure on earnings in the fourth quarter and for the first half of 1993.
 "While our near-term expectations are subdued, we remain confident about the strength of our business. Our market share has grown, and we are the established leader in additive technology. Our strong commitment to invest in product development and testing remains the key to our success and will result in future earnings growth. We continue to demonstrate this confidence in our future through the repurchase of our shares."
 The Lubrizol Corporation is a full service supplier of performance chemicals for lubricants and fuels to customers worldwide.
 THE LUBRIZOL CORPORATION
 CONSOLIDATED STATEMENTS OF INCOME
 Third Quarter Nine Months
 Ended September 30 Ended September 30
 (In Thousands Except
 Per Share Data) 1992 1991 1992 1991
 Net sales $362,377 $357,589 $1,191,993 $1,099,954
 Royalties and other
 revenues 1,819 1,726 5,583 6,081
 Total revenues 364,196 359,315 1,197,576 1,106,035
 Cost of sales 259,451 244,536 803,594 741,306
 Selling and administrative
 expenses 41,105 37,221 138,845 133,117
 Research, testing and
 development expenses 40,468 38,360 114,154 107,525
 Total cost and
 expenses 341,024 320,117 1,056,593 981,948
 Other income - net 3,232 2,312 10,992 8,289
 Interest - net 844 (305) 2,640 192
 Income before income taxes 27,248 41,205 154,615 132,568
 Provision for income taxes 8,229 12,361 46,694 40,809
 Net income $ 19,019 $ 28,844 $ 107,921 $ 91,759
 Net income per share $.28 $.42 $1.56 $1.32
 Average number of
 shares outstanding 69,071 69,080 69,092 69,341
 Amounts shown are unaudited. All share and per share data have been restated to reflect the 2 for 1 stock split effective Aug. 31, 1992.
 THE LUBRIZOL CORPORATION
 OPERATING RESULTS BY BUSINESS SEGMENT
 Third Quarter Nine Months
 Ended September 30 Ended September 30
 (In Thousands of Dollars) 1992 1991 1992 1991
 Revenues:
 Specialty Chemicals $356,620 $348,195 $1,088,184 $ 992,661
 Agribusiness 7,576 11,120 109,392 113,374
 Total $364,196 $359,315 $1,197,576 $1,106,035
 Gross profit:
 Specialty Chemicals $103,394 $110,495 $ 348,786 $ 317,142
 Agribusiness (468) 2,558 39,613 41,506
 Total $102,926 $113,053 $ 388,399 $ 358,648
 Selling and administrative expenses:
 Specialty Chemicals $ 37,927 $ 33,131 $ 108,554 $ 103,769
 Agribusiness 3,178 4,090 30,291 29,348
 Total $ 41,105 $ 37,221 $ 138,845 $ 133,117
 Research, testing and development expenses:
 Specialty Chemicals $ 36,514 $ 34,319 $ 102,389 $ 95,190
 Agribusiness-Traditional 1,956 1,855 5,666 5,537
 - Strategic 1,998 2,186 6,099 6,798
 Total 3,954 4,041 11,765 12,335
 Total $ 40,468 $ 38,360 $ 114,154 $ 107,525
 Segment income (loss):
 Specialty Chemicals $ 34,110 $ 46,725 $ 154,328 $ 132,513
 Agribusiness-Traditional (5,628) (3,012) 4,291 7,492
 - Strategic (2,078) (2,203) (6,644) (7,629)
 Total (7,706) (5,215) (2,353) (137)
 Total $ 26,404 $ 41,510 $ 151,975 $ 132,376
 Amounts shown are unaudited.
 THE LUBRIZOL CORPORATION
 CONSOLIDATED BALANCE SHEETS
 September 30
 (In Thousands of Dollars) 1992 1991
 Assets
 Cash and short-term investments $ 134,055 $ 118,410
 Receivables 240,524 241,715
 Inventories 325,198 273,036
 Other current assets 14,985 19,843
 Total current assets 714,762 653,004
 Property and equipment - net 402,794 362,595
 Investments and other assets 86,027 90,986
 Total $1,203,583 $1,106,585
 Liabilities and Shareholders' Equity
 Short-term debt $ 22,178 $ 18,118
 Other current liabilities 227,025 200,933
 Total current liabilities 249,203 219,051
 Long-term debt 19,701 54,256
 Other non-current liabilities 80,477 73,151
 Total liabilities 349,381 346,458
 Shareholders' equity 854,202 760,127
 Total $1,203,583 $1,106,585
 Identifiable Assets
 Specialty Chemicals $ 911,753 $ 836,679
 Agribusiness 170,233 148,156
 Corporate investments 121,597 121,750
 Total $1,203,583 $1,106,585
 Amounts shown are unaudited.
 -0- 10/26/92 R
 /CONTACT: K.H. Hopping of the Lubrizol Corporation, 216-943-4200, Ext. 5253/
 (LZ) CO: Lubrizol Corporation ST: Ohio IN: CHM SU: ERN


KK -- CL016 -- 4976 10/26/92 15:40 EST
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