Specialties chemicals producer Lubrizol Corp, a unit of Berkshire Hathaway, saw its sales rise in 2021 on the back of higher selling prices and volumes.
But its pretax profit slumped amid losses related to a fire last year at a subsidiary unit, combined with impairment charges for an underperforming unit.
Sales of $6.5bn in 2021 rose by 8.6pc from a year earlier amid higher average selling prices. These prices rose on the back of significant increases in materials and other manufacturing costs.
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Global base oil prices surged in 2021, especially in the first half of the year, in response to unusually tight supply and a strong rebound in demand. The supply tightness included lubricant additives.
Lubrizol’s sales got a further boost from slightly higher sales volumes.
Its pretax profit fell by more than 50pc in 2021 from a year earlier. The profit included losses related to a fire last June at Chemtool’s grease facility in Illinois.
