Specialty chemicals producer Lubrizol saw its pre-tax profit rebound in the second quarter of the year even as its sales volume fell.
Lubrizol’s pre-tax profit rose by 60pc in the three months to end-June compared with year-earlier levels, Berkshire Hathaway said in a second-quarter earnings report without disclosing specific profit levels.
Lubrizol is a unit of Berkshire Hathaway.
The higher profit partly reflected lower-than-usual earnings the same time last year.
Earnings in the second quarter of 2021 included property losses, asset impairment charges and containment and response costs of around $160mn in connection with a fire at its Chemtool grease facility in Illinois in June 2021.
Profit in the second quarter of this year got a boost from insurance recoveries in connection with the 2021 fire.
But profit faced pressure from rising raw material costs and lower sales volumes.
Base oils prices rose strongly in the second quarter of the year following a surge in crude and diesel prices.
Sales volume fell because of raw material supply constraints and unplanned temporary maintenance shutdowns.
Higher selling prices partially offset the rising costs and lower production.
Tight supplies of additives over the past year have complicated blenders’ ability to produce some types of lubricants.
Lubrizol’s higher selling prices helped to boost sales to around $1.7bn in the second quarter. Revenue was up around 3.5pc from year-earlier levels.
