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LUBRIZOL ANNOUNCES 1991 RESULTS

 LUBRIZOL ANNOUNCES 1991 RESULTS
 CLEVELAND, Feb. 12 /PRNewswire/ -- The Lubrizol Corporation


(NYSE: LZ) announced consolidated revenues for 1991 were $1.48 billion, an increase of 2 percent over 1990. Consolidated net income was $123.7 million, or $3.57 per share. Additive shipments in 1991 decreased 3 percent from 1990. Consolidated net income in 1990 was $190 million, or $5.34 per share, and included a gain from the sale of Genentech stock, lower fourth quarter taxes and certain asset write-downs. Excluding these special items, income from operations in 1990 was $3.71 per share.
 Consolidated revenues for the fourth quarter, which ended on Dec. 31, 1991, were $370 million, the same as last year's fourth quarter. Consolidated net income was $31.9 million, or $.92 per share. Consolidated net income for the fourth quarter of 1990 was $31.5 million, or $.91 per share, and included a charge of $.19 per share for the write-down relating to a former Agribusiness affiliate and a gain of $.17 per share from the favorable resolution of several tax audits. Additive shipments in the fourth quarter of 1991 were 6 percent above last year. The stronger U.S. dollar adversely affected earnings during the fourth quarter by approximately $.07 per share when compared to last year.
 Lubrizol repurchased 285,000 shares of its common stock during 1991.
 L. E. Coleman, Chairman, said, "The fourth quarter provided a strong finish to 1991 with Specialty Chemicals shipments continuing to increase. We expect to maintain these shipment levels in 1992 and return to our historic unit volume growth rate. Economic recovery projected for the second half of 1992 should increase the sale of additives, particularly in international markets which were weak in 1991. Shipments in North America for 1991 were the same level as 1990.
 "Expenditures for research, testing and product development for Specialty Chemicals increased 19 percent in 1991 in response to anticipated changes in industry specifications and testing procedures, and new customer opportunities. However, recession and market conditions are limiting our ability to recover these higher technology expenses, and we expect to moderate the rate of their growth in 1992 to about 7 percent.
 "Agribusiness loss in 1991 was smaller than the loss before write-down in 1990 because of higher revenues from the sale of specialty oils. The Agribusiness segment is expected to show a profit in 1992. We remain committed to obtain maximum value from our Agribusiness investment and are actively pursuing opportunities to reach that objective.
 "Our outlook for 1992 remains positive. Higher shipment levels, improving currency comparisons, moderating operating expenses and higher Agribusiness income should enable Lubrizol to resume an earnings growth rate of 10 percent or better."
 Lubrizol is a specialty chemical company using chemical, mechanical and biological technologies to develop products for world markets in transportation, industry and agriculture.
 THE LUBRIZOL CORPORATION
 CONSOLIDATED STATEMENTS OF INCOME
 Fourth Quarter Twelve Months
 Ended December 31 Ended December 31
 (In Thousands Except
 Per Share Data) 1991 1990 1991 1990
 Net sales............... $367,947 $368,909 $1,467,901 $1,444,758
 Royalties and other
 revenues............... 2,324 2,243 8,405 7,943
 Total revenues..... 370,271 371,152 1,476,306 1,452,701
 Cost of sales........... 250,969 260,368 992,275 1,006,341
 Selling, testing and
 administrative expenses 54,496 53,189 236,437 207,626
 Research and development
 expenses............... 21,263 19,324 79,964 74,424
 Total cost and
 expenses.......... 326,728 332,881 1,308,676 1,288,391
 Gain on sale of Genentech 101,921
 Other income (expense)-net 1,211 (7,591) 9,500 504
 Interest - net.......... 818 3,226 1,010 4,477
 Income before income taxes 45,572 33,906 178,140 271,212
 Provision for income
 taxes 13,672 2,380 54,481 81,166
 Net income.............. $ 31,900 $ 31,526 $ 123,659 $ 190,046
 Net income per share.... $.92 $.91 $3.57 $5.34
 Average number of shares outstanding
 (in thousands)........ 34,510 34,677 34,630 35,560
 Quarterly amounts are unaudited.
 THE LUBRIZOL CORPORATION
 OPERATING RESULTS BY BUSINESS SEGMENT
 Fourth Quarter Twelve Months
 Ended December 31 Ended December 31
 (In Thousands of Dollars) 1991 1990 1991 1990
 Revenues:
 Specialty Chemicals... $356,143 $358,839 $1,348,804 $1,335,471
 Agribusiness.......... 14,128 12,313 127,502 117,230
 Total........... $370,271 $371,152 $1,476,306 $1,452,701
 Gross Profit:
 Specialty Chemicals... $112,760 $108,207 $ 429,902 $ 398,238
 Agribusiness.......... 4,218 334 45,724 40,179
 Total........... $116,978 $108,541 $ 475,626 $ 438,417
 Selling, testing and administrative expenses:
 Specialty Chemicals... $ 51,373 $ 50,453 $ 203,966 $ 176,957
 Agribusiness.......... 3,123 2,736 32,471 30,669
 Total........... $ 54,496 $ 53,189 $ 236,437 $ 207,626
 Research and development expenses:
 Specialty Chemicals... $ 17,290 $ 14,870 $ 63,656 $ 57,776
 Agribusiness
 - Traditional..... 2,214 2,261 7,751 7,697
 - Strategic....... 1,759 2,193 8,557 8,951
 Total......... 3,973 4,454 16,308 16,648
 Total........... $ 21,263 $ 19,324 $ 79,964 $ 74,424
 Segment income (loss):
 Specialty Chemicals... $ 46,647 $ 45,991 $ 179,160 $ 179,359
 Agribusiness
 - Traditional.... (10) (12,720) 7,482 (4,960)
 - Strategic...... (1,883) (2,591) (9,512) (9,585)
 Total........ (1,893) (15,311) (2,030) (14,545)
 Total........... $ 44,754 $ 30,680 $ 177,130 $ 164,814
 Segment income is before interest and income taxes and, in 1990, the gain on sale of Genentech.
 Quarterly amounts are unaudited.
 THE LUBRIZOL CORPORATION
 CONSOLIDATED BALANCE SHEETS
 December 31
 (In Thousands of Dollars) 1991 1990
 Assets
 Cash and short-term investments....... $ 126,147 $ 76,100
 Receivables........................... 240,382 258,129
 Inventories........................... 306,993 294,986
 Other current assets.................. 28,049 39,595
 Total current assets............ 701,571 668,810
 Property and equipment - net.......... 380,030 353,551
 Investments and other assets.......... 90,082 92,235
 Total........................ $1,171,683 $1,114,596
 Liabilities and Shareholders' Equity
 Short-term debt....................... $ 32,801 $ 12,552
 Other current liabilities............. 229,361 235,799
 Total current liabilities....... 262,162 248,351
 Long-term debt........................ 34,982 54,023
 Other non-current liabilities......... 80,073 76,011
 Total liabilities............... 377,217 378,385
 Shareholders' equity.................. 794,466 736,211
 Total........................ $1,171,683 $1,114,596
 Identifiable Assets
 Specialty Chemicals................... $ 862,235 $ 886,619
 Agribusiness.......................... 175,302 154,153
 Corporate investments................. 134,146 73,824
 Total...................... $1,171,683 $1,114,596
 Total current liabilities....... 262,162 248,351
 -0- 2/12/92
 /CONTACT: K.H. Hopping of Lubrizol Corp., 216-943-4200, ext. 5253/
 (LZ) CO: The Lubrizol Corporation ST: Ohio IN: CHM SU: ERN


CG -- CL003 -- 9142 02/12/92 10:17 EST
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