OK
The Universal Selection Source:
Coatings Ingredients
Industry News

Lubrizol Shelf Registration Declared Effective; CEO Given Clean Bill of Health; Company's Guidance Affirmed and Updated

Published on 2004-08-31. Author : SpecialChem

 

CLEVELAND, Ohio -- The Lubrizol Corporation (NYSE: LZ) announced that the U.S. Securities and Exchange Commission declared the company's shelf registration effective on August 27, 2004. As a result, the company can proceed with its planned offer and sale of up to $2 billion of securities, consisting of common shares and debt. Proceeds from the sale of these securities will be used to replace the company's bridge financing facility, which was arranged in conjunction with the June acquisition of Noveon International, Inc.

The company also reported that James L. Hambrick, 49, President and Chief Executive Officer, has successfully completed previously announced medical treatment. Mr. Hambrick, who was diagnosed with early-stage testicular cancer, maintained day-to-day responsibility for the company throughout the course of his treatment.

In anticipation of the upcoming securities offering, the company reaffirmed its income guidance for 2004, as disclosed in the second quarter earnings teleconference on July 28th. Expectations for consolidated net income continue to be within the range of the July 28th guidance. The company now believes that recent sudden spikes in the prices of certain raw materials are likely to result in somewhat lower-than-expected contribution from the specialty chemicals segment, offset by somewhat higher-than-expected contribution from the lubricant additives segment.

Commenting on business conditions, Mr. Hambrick said, "We have moved aggressively to implement price increases across the majority of our businesses to address continued rises in raw material costs. The specialty chemicals segment has been especially impacted by surges in recent weeks in the costs of raw materials such as toluene and benzene. We are encouraged, however, that strong demand continues to drive solid year-over-year growth. In particular, the Noveon sales forecast remains on track and integration of the acquisition is proceeding as planned. Excluding the acquisition-related costs of Noveon, we continue to believe that consolidated results for the year will exceed 2003 performance significantly."

The Lubrizol Corporation (NYSE: LZ) is a global provider of specialty chemicals and materials for a wide variety of markets and end-use applications, such as lubricant additives for engine oils, other transportation-related fluids and industrial lubricants, as well as fuel additives for gasoline and diesel fuel. In addition, Lubrizol makes ingredients and additives for personal care products and pharmaceuticals; specialty materials, including plastics technology; performance coatings in the form of specialty resins and additives; and additives for the food and beverage industry. Lubrizol's industry-leading positions in additives, ingredients and compounds enhance the quality, performance and value of customers' products, while reducing their environmental impact.

Headquartered in Wickliffe, Ohio, The Lubrizol Corporation owns and operates manufacturing facilities in 22 countries, as well as sales and technical offices around the world. Founded in 1928, Lubrizol has more than 7,700 employees worldwide. In June 2004, Lubrizol acquired Noveon International, Inc. With Noveon, Lubrizol generated pro forma revenues of $3.2 billion in 2003 and $1.84 billion in the first six months of 2004.

This press release contains forward-looking statements within the meaning of the federal securities laws. As a general matter, forward-looking statements relate to anticipated trends and expectations rather than historical matters. Forward-looking statements are subject to uncertainties and factors relating to the company's operations and business environment that are difficult to predict and may be beyond the control of the company. Such uncertainties and factors may cause actual results to differ materially from those expressed or implied by forward-looking statements. Uncertainties and factors that could affect the future performance of the company and cause results to differ from the forward-looking statements in this press release are contained in the company's Registration Statement on Form S-3, filed on May 20, 2004.

Source: Lubrizol


Halcyon Group 3rd R&D Innovation Summit
Channel Alerts

Receive weekly digests on hot topics

Back to Top