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LUBRIZOL ANNOUNCES 1992 RESULTS

 CLEVELAND, Feb. 16 /PRNewswire/ -- The Lubrizol Corporation (NYSE: LZ) announced consolidated revenues for 1992 were $1.55 billion, an increase of 5 percent over 1991. Consolidated net income was $124.6 million, or $1.81 per share. Additive shipments in 1992 increased 8 percent over 1991 to a record level. Consolidated net income in 1991 was $123.7 million, or $1.79 per share.
 Consolidated revenues for the fourth quarter, which ended on Dec. 31, 1992, were $354.7 million, a decline of 4 percent from last year's fourth quarter. Consolidated net income was $16.7 million, or $.24 per share. Additive shipments in the fourth quarter of 1992 decreased 5 percent from the same quarter last year. Consolidated net income for the fourth quarter of 1991 was $31.9 million, or $.46 per share.
 Lubrizol repurchased 525,000 shares of its common stock during the fourth quarter of 1992 and 835,200 shares for the year. The company has 1.2 million shares remaining on its share repurchase authorization.
 L.E. Coleman, chairman, said, "The strong gains in revenues and earnings which occurred in the first half of 1992 eroded in the second half, and we are disappointed. Yet, for the full year, Specialty Chemicals segment income was a record. International sales remained weak in the fourth quarter with shipment levels declining by 9 percent, while North American shipments were flat. Customers worldwide are continuing to carefully manage inventories and orders until there are clearer signs of economic recovery. Our operating expenses have been growing steadily, particularly for technology costs associated with testing for new lubricant performance standards. Additionally, patent litigation activity contributed to higher selling and administrative expenses in the quarter.
 "Agribusiness results were poor in the fourth quarter and reflected lower specialty oil and international seed sales as well as restructuring costs associated with Lubrizol's partnership with Mycogen. This partnership transaction was completed in the fourth quarter and should contribute to improved earnings in the future.
 "Technology spending, the strengthening U.S. dollar and weak overseas economies will probably continue to hold down earnings for the first half of 1993. We expect to begin to recover our investment in product development and testing as we introduce new higher performing products for U.S. engine oils mid-year. Our efforts to control other operating expenses should also contribute to improving earnings comparisons in the second half of 1993 and into 1994."
 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
 Fourth Quarter Twelve Months
 Ended December 31 Ended December 31
 (In Thousands Except Per
 Share Data) 1992 1991 1992 1991
 Net sales $352,677 $367,947 $1,544,670 $1,467,901
 Royalties and other
 revenues 1,995 2,324 7,578 8,405
 Total revenues 354,672 370,271 1,552,248 1,476,306
 Cost of sales 250,782 250,969 1,054,376 992,275
 Selling and administrative
 expenses 42,481 39,301 181,326 172,418
 Research, testing and
 development expenses 40,608 36,458 154,762 143,983
 Total cost and
 expenses 333,871 326,728 1,390,464 1,308,676
 Other income - net 913 1,211 11,905 9,500
 Interest - net 815 818 3,455 1,010
 Income before income
 taxes 22,529 45,572 177,144 178,140
 Provision for income
 taxes 5,804 13,672 52,498 54,481
 Net income $16,725 $ 31,900 $ 124,646 $ 123,659
 Net income per share $.24 $.46 $1.81 $1.79
 Average number of
 shares outstanding
 (in thousands) 68,588 69,019 68,966 69,260
 All share and per share data have been restated to reflect the 2- for-1 stock split effective Aug. 31, 1992.
 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) 1992 1991 1992 1991
 Revenues:
 Specialty Chemicals $345,174 $356,143 $1,433,358 $1,348,804
 Agribusiness 9,498 14,128 118,890 127,502
 Total $354,672 $370,271 $1,552,248 $1,476,306
 Gross profit:
 Specialty Chemicals $102,181 $112,760 $ 450,967 $ 429,902
 Agribusiness (286) 4,218 39,327 45,724
 Total $101,895 $116,978 $ 490,294 $ 475,626
 Selling and administrative expenses:
 Specialty Chemicals $ 39,099 $ 36,178 $ 147,653 $ 139,947
 Agribusiness 3,382 3,123 33,673 32,471
 Total $ 42,481 $ 39,301 $ 181,326 $ 172,418
 Research, testing and development expenses:
 Specialty Chemicals $ 37,421 $ 32,485 $ 139,810 $ 127,675
 Agribusiness
 - Traditional 1,574 2,214 7,240 7,751
 - Strategic 1,613 1,759 7,712 8,557
 Total 3,187 3,973 14,952 16,308
 Total $ 40,608 $ 36,458 $ 154,762 $ 143,983
 Segment income (loss):
 Specialty Chemicals $ 30,820 $ 46,647 $ 185,148 $ 179,160
 Agribusiness
 - Traditional (5,853) (10) (1,562) 7,482
 - Strategic (3,253) (1,883) (9,897) (9,512)
 Total (9,106) (1,893) (11,459) (2,030)
 Total $ 21,714 $ 44,754 $ 173,689 $ 177,130
 Quarterly amounts are unaudited.
 THE LUBRIZOL CORPORATION
 CONSOLIDATED BALANCE SHEETS
 December 31
 (In Thousands of Dollars) 1992 1991
 Assets
 Cash and short-term investments $ 76,593 $ 126,147
 Receivables 221,094 240,382
 Inventories 272,418 306,993
 Other current assets 20,911 28,049
 Total current assets 591,016 701,571
 Property and equipment - net 375,587 380,030
 Investments and other assets 160,517 90,082
 Total $1,127,120 $1,171,683
 Liabilities and Shareholders' Equity
 Short-term debt $ 25,140 $ 32,801
 Other current liabilities 181,108 229,361
 Total current liabilities 206,248 262,162
 Long-term debt 23,258 34,982
 Other non-current liabilities 78,252 80,073
 Total liabilities 307,758 377,217
 Shareholders' equity 819,362 794,466
 Total $1,127,120 $1,171,683
 Identifiable Assets
 Specialty Chemicals $ 871,401 $ 862,235
 Agribusiness 104,339 158,747
 Corporate investments 151,380 150,701
 Total $1,127,120 $1,171,683
 -0- 2/16/93
 /CONTACT: K.H. Hopping of The Lubrizol Corporation, 216-943-4200, Ext. 5253/
 (LZ)


CO: The Lubrizol Corporation ST: Ohio IN: CHM SU: ERN

KK -- CL003 -- 6701 02/16/93 08:35 EST
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