(RTTNews) - Thursday, specialty chemicals company Lubrizol Corp. (LZ: News ) announced that its profit for the third quarter had almost tripled compared to the year-ago period on vigorous cost-cutting measures that resulted in lower manufacturing costs and reduced selling, technical, administrative and research expenses. Adjusted earnings for the quarter were inline with estimates, while revenue came in ahead of consensus view. The company has also increased its full year earnings guidance.

Lubrizol profit increased to $170.5 million or $2.46 per share from $63.2 million or $0.92 per share in the year-ago period.

The quarter's results include after-tax restructuring and impairment charges of $3.9 million or $0.06 per share associated with the closure of production in the Lubrizol Advanced Materials segment. The year-ago quarter's results include after-tax restructuring and impairment charges of $3.8 million or $0.06 per share associated with the closure of a Lubrizol Additives blending facility in Canada.

Excluding restructuring and impairment charges in both periods, adjusted earnings were $174.4 million, compared with $67 million in the year-earlier quarter. On a per share basis, adjusted earnings increased to $2.52 from $0.98. Analysts expected earnings of $2.52 for the quarter. Analysts' estimates typically exclude one-time items.

The increase in adjusted earnings was largely due to disciplined margin management, cost savings initiatives that lowered manufacturing costs and reduced selling, technical, administrative and research expenses, contributions from the 2008 acquisitions and an insurance recovery for previously incurred environmental remediation costs, said the company.

Though revenue declined 6% to $1.27 billion from $1.36 billion last year, it came in above the Wall Street estimate of $1.18 billion for the quarter.
The year-over-year decrease in revenue was due to lower volumes and unfavorable currency rates, partially offset by a better mix of prices and products and 2% incremental revenue from acquisitions in 2008.

Segement-wise, Lubrizol Additives revenue declined to $914.5 million from $961.9 million, while Lubrizol Advanced Materials revenue decreased to $360.1 million from $400.8 million in the year-earlier period.

The company managed to slash its cost of sales to $814.0 million from $1.07 billion in the prior-year period. In-line with its cost-cutting measures, research and development expenses were cut to $54.8 million from $55.8 million. However, selling and administrative expenses increased to $117.7 million from $111.0 million in the year-ago quarter.

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