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LUBRIZOL REPORTS THIRD QUARTER RESULTS

 CLEVELAND, Oct. 25 /PRNewswire/ -- The Lubrizol Corporation (NYSE: LZ) announced that consolidated revenues for the third quarter of 1993 which ended on Sept. 30 were $392.8 million, an increase of 8 percent over the same period last year. Specialty chemical shipments increased 4 percent over the third quarter of 1992.
 The company reported a consolidated loss in the third quarter of $15.9 million, or $.24 per share, which included an $86.3 million pretax charge for its organization realignment and manufacturing rationalization and also included a pretax gain of $20.1 million from the sale of investments. Excluding these special items, net income for the quarter was $27.1 million, or $.40 per share. Consolidated net income in the third quarter of 1992 was $19 million, or $.28 per share.
 For the first nine months of 1993, consolidated revenues were $1.15 billion compared to $1.2 billion for the same period last year. Consolidated net income before accounting changes was $50.9 million, or $.75 per share. The cumulative effect of changes in accounting principles for postretirement healthcare benefits and income taxes reduced net income for the first nine months of 1993 to $11.5 million, or $.17 per share. Excluding special items and accounting changes, net income for the first nine months was $93.9 million, or $1.39 per share. Consolidated net income for the first nine months of 1992 was $107.9 million, or $1.56 per share.
 Lubrizol repurchased 512,300 shares of its common stock during the third quarter. The company has 3.8 million shares remaining on its share repurchase authorization.
 L. E. Coleman, chairman, said, "Our third quarter results are encouraging. Net income before special items increased 43 percent over last year's weak third quarter and gross profit increased substantially both year-over-year and compared with the second quarter. Shipment volumes increased 4 percent in the quarter and were up over 12 percent for international customers.
 "Technology spending remains high relative to revenues as we continue to run customer test programs to meet new performance standards for passenger car and diesel engine oils and automatic transmission fluids. This level of spending is likely to continue into 1994 before moderating as test programs are completed.
 "In addition to the special charge for organization realignment and manufacturing rationalization, which was previously announced on October 4, the quarter was also negatively impacted by higher losses from our investment in agribusiness. Mycogen recorded a one-time restructuring charge in the third quarter, and weather-related problems in the Midwest adversely affected agribusiness results.
 "We are progressing with our organization realignment as well as our other initiatives to reduce operating expenses. The benefit of these initiatives will result in annual cost savings which are estimated to grow to $50 million per year by 1996 and will produce improved earnings growth."
 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
 Ended September 30
 (In Thousands Except Per Share Data) 1993 1992
 Net sales $390,819 $362,377
 Royalties and other revenues 1,946 1,819
 Total revenues 392,765 364,196
 Cost of sales 261,594 259,451
 Selling and administrative expenses 40,088 41,105
 Research, testing and development expenses 45,394 40,468
 Total cost and expenses 347,076 341,024
 Special charge (86,303) ---
 Gain on sale of Genentech 20,108 ---
 Other income (expense) - net (7,263) 3,232
 Interest - net 320 844
 Income (loss) before income taxes (27,449) 27,248
 Provision (benefit) for income taxes (11,544) 8,229
 Income (loss) before accounting changes (15,905) 19,019
 Cumulative effect of accounting changes:
 Postretirement benefits, net of tax --- ---
 Income taxes --- ---
 Net income (loss) $(15,905) $19,019
 Per Common Share:
 Income (loss) before accounting changes $(.24) $ .28
 Cumulative effect of accounting changes:
 Postretirement benefits, net of tax --- ---
 Income taxes --- ---
 Net income (loss) per share $(.24) $ .28
 Average number of shares outstanding 67,464 69,071
 Nine Months
 Ended September 30
 (In Thousands Except Per Share Data) 1993 1992
 Net sales $1,148,635 $1,191,993
 Royalties and other revenues 5,788 5,583
 Total revenues 1,154,423 1,197,576
 Cost of sales 779,617 803,594
 Selling and administrative expenses 117,980 138,845
 Research, testing and development expenses 126,158 114,154
 Total cost and expenses 1,023,755 1,056,593
 Special charge (86,303) ---
 Gain on sale of Genentech 20,108 ---
 Other income (expense) - net 5,723 10,992
 Interest - net (864) 2,640
 Income (loss) before income taxes 69,332 154,615
 Provision (benefit) for income taxes 18,464 46,694
 Income (loss) before accounting changes 50,868 107,921
 Cumulative effect of accounting changes:
 Postretirement benefits, net of tax (51,520) ---
 Income taxes 12,145 ---
 Net income (loss) $ 11,493 $ 107,921
 Per Common Share:
 Income (loss) before accounting changes $ .75 $1.56
 Cumulative effect of accounting changes:
 Postretirement benefits, net of tax (.76) ---
 Income taxes .18 ---
 Net income (loss) per share $ .17 $1.56
 e?rage number of shares outstanding 67,961 69,092
 Amounts shown are unaudited.
 THE LUBRIZOL CORPORATION
 CONSOLIDATED BALANCE SHEETS
 September 30
 (In Thousands of Dollars) 1993 1992
 Assets
 Cash and short-term investments $ 53,021 $ 134,055
 Receivables 251,088 240,524
 Inventories 279,249 325,198
 Other current assets 33,203 14,985
 Total current assets 616,561 714,762
 Property and equipment - net 407,023 402,794
 Investments and other assets 194,242 86,027
 Total $1,217,826 $1,203,583
 Liabilities and Shareholders' Equity
 Short-term debt $ 32,605 $ 22,178
 Other current liabilities 238,907 227,025
 Total current liabilities 271,512 249,203
 Long-term debt 43,944 19,701
 Other non-current liabilities 157,116 80,477
 Total liabilities 472,572 349,381
 Shareholders' equity 745,254 854,202
 Total $1,217,826 $1,203,583
 Amounts shown are unaudited.
 -0- 10/25/93
 /CONTACT: K. H. Hopping of Lubrizol, 216-943-4200, Ext. 5253/
 (LZ)


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

BM -- CL009 -- 6155 10/25/93 09:07 EDT
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Date:Oct 25, 1993
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