Specialties chemicals producer Lubrizol saw its pre-tax profit fall in the first quarter of the year on the back of rising raw material costs and lower sales volumes.Lubrizol’s pre-tax profit fell by 39.8pc in the first three months of the year compared with year-earlier levels, Berkshire Hathaway said in a first-quarter earnings report without disclosing specific profit levels. Lubrizol is a unit of Berkshire Hathaway..It said profit fell because of higher raw material costs, lower sales volumes and higher expenses caused by unplanned temporary shutdowns.Earnings in the first quarter of 2021 had also fallen from the previous year because of weather-related shutdowns of additives facilities.First-quarter sales fell much less steeply. Revenue of $1.65bn was down by 2.5pc from year-earlier levels.Sales fell because of a drop in sales volumes.Sales volumes fell because of raw material supply constraints and as unplanned shutdowns for maintenance curbed production.Tight availability of additives made by producers like Lubrizol has been curbing some blenders’ ability to produce lubricants, cutting their demand for base oils.Higher average selling prices cushioned the drop in Lubrizol's sales. These rose in response to rising prices for raw materials such as base oils, as well as for utilities, packaging, shipping and freight costs..NewMarket’s Q1 profit falls
Specialties chemicals producer Lubrizol saw its pre-tax profit fall in the first quarter of the year on the back of rising raw material costs and lower sales volumes.Lubrizol’s pre-tax profit fell by 39.8pc in the first three months of the year compared with year-earlier levels, Berkshire Hathaway said in a first-quarter earnings report without disclosing specific profit levels. Lubrizol is a unit of Berkshire Hathaway..It said profit fell because of higher raw material costs, lower sales volumes and higher expenses caused by unplanned temporary shutdowns.Earnings in the first quarter of 2021 had also fallen from the previous year because of weather-related shutdowns of additives facilities.First-quarter sales fell much less steeply. Revenue of $1.65bn was down by 2.5pc from year-earlier levels.Sales fell because of a drop in sales volumes.Sales volumes fell because of raw material supply constraints and as unplanned shutdowns for maintenance curbed production.Tight availability of additives made by producers like Lubrizol has been curbing some blenders’ ability to produce lubricants, cutting their demand for base oils.Higher average selling prices cushioned the drop in Lubrizol's sales. These rose in response to rising prices for raw materials such as base oils, as well as for utilities, packaging, shipping and freight costs..NewMarket’s Q1 profit falls
