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Lubrizol Corporation has announced that consolidated earnings for the first quarter ended March 31, 2008 were $73.6 million, or $1.06 per diluted share, including after-tax restructuring and impairment charges of $2.9 million, or $0.04 per diluted share, primarily related to the disposition of a North American coatings facility. Comparable earnings for the first quarter of 2007 were $71.3 million, or $1.02 per diluted share, which included after-tax restructuring credits of $1.7 million, or $0.03 per diluted share.

Consolidated revenues for the first quarter increased 14 percent to $1.23 billion compared with $1.08 billion in the first quarter of 2007. Compared with the prior-year quarter, volume increased revenues 6 percent, improvements in the combination of price and product mix contributed 4 percent and currency had a 4 percent favorable impact. Included in these factors was the incremental impact from acquisitions completed in 2007, which contributed 3 percent to consolidated revenues in the first quarter of 2008.

Excluding the restructuring and impairment charges and credits in both periods, adjusted earnings were $76.5 million, or $1.10 per diluted share, for the first quarter of 2008 compared with $69.6 million, or $.99 per diluted share, for the first quarter of 2007.

Remarking on the results, CEO James Hambrick stated, "I am pleased with our overall first quarter performance. We finished 2007 with strong momentum and we are seeing this trend continue in 2008. Our first quarter results reflect our balanced portfolio of businesses and the geographic diversity of our customer base as international market growth continued to outpace North American demand."

In the first quarter of 2008, Lubrizol Additives segment revenues of $826 million were 19 percent higher than the first quarter of 2007. Compared with the year-earlier quarter, revenue growth resulted from a 10 percent volume increase, a 5 percent improvement in the combination of price and product mix and a favorable currency impact of 4 percent. Included in these factors was the incremental impact from the 2007 acquisitions, which contributed 4 percent to revenues in the quarter. The segment set a record for volume in a quarter, which predominantly was attributable to strong demand in all international markets. The year-over-year volume comparison was favorable due to the impact of order pattern changes and incremental acquisitions. Compared with the first quarter of 2007, Lubrizol Additives operating income increased 12 percent to $113 million in the first quarter of 2008 primarily as a result of higher volume, favorable currency and the contributions from acquisitions completed in 2007. These positive factors were partially offset by higher raw material and operating costs.

"Lubrizol Additives is performing very well," stated Hambrick. "Our performance was attributable to the strength of our new products and technologies, which we believe contributed to our customers' success. We remain focused on sustaining our operating margins that justify our reinvestment in the business. Last month we announced a multi-year capital expenditure plan, which will add incremental capacity sufficient to meet future demand. This action is now warranted because of the improved fundamentals in this business."