Lubrizol Announces Target of $13.50 EPS by 2013
o Company to provide updated growth targets at analyst day
o Steady earnings growth projected due to geographic expansion, product innovation
and improved product mix
o Share repurchases also expected to contribute to the achievement of the EPS target
CLEVELAND, October 5, 2010 - The Lubrizol Corporation (NYSE: LZ) announces that it has
updated its longer-term targets for earnings and margins, which it initially released on February
25, 2010. The company continues to project steady earnings growth during the next several
years and established a new 2013 goal for earnings of $13.50 per share, an increase of
approximately 80 percent compared with 2009 results as adjusted. The 2013 target assumes
no restructuring and impairment charge adjustments.
At the company's analyst day, to be held today in New York City, Lubrizol's senior vice
president and chief financial officer, Charles Cooley, will update Lubrizol's longer-term growth
targets for volume and earnings per share and provide new 2013 targets for consolidated and
operating segment gross and operating margins. The 2013 earnings per share goal of $13.50
reflects earnings contributions from each of the company's operating segments as well as the
earnings per share impact from the company's current share repurchase program.
Leading off the analyst day presentations will be James Hambrick, chairman, president and
chief executive officer. Hambrick notes, "In February, we announced an earnings per share
goal of $10 by 2012. Given our favorable results to date, we expect to meet this goal ahead of
schedule. And so, we believe it is appropriate to revisit our longer-term targets, especially to
reinforce our positive outlook for sustained growth beyond 2010. We continue to perform well
and benefit from a global market presence and highly valued technologies important to our
customers' success. Additionally, our strong balance sheet and ample liquidity are important
enablers for accelerating growth."
Added Hambrick, "The analyst day presentations mainly will focus on our longer-term plans and
how we aim to accomplish them. Our current performance continues to be strong, but we will
reserve discussion of the third quarter's business activity for our earnings release scheduled for
October 28."
Also presenting at the analyst day event will be Eric Schnur, president of Lubrizol Advanced
Materials, and Dan Sheets, president of Lubrizol Additives. Each will discuss key elements of
the growth plans for his respective business segments.
Share Repurchases During Third Quarter of 2010
The company continued its share repurchase activity during the third quarter of 2010 by
purchasing 2.1 million shares for $200.5 million at an average price of approximately $95 per
share. Year-to-date 2010, the company has repurchased approximately 3.7 million shares for
$326.0 million at an average price of approximately $89 per share.
Approximately 5.1 million shares remain under the existing share repurchase authorization.
Through this program, Lubrizol expects to make purchases from time to time either in the open
market or through private transactions. Although the repurchase program does not include a
specific timetable or price targets and may be suspended or terminated at any time, the
company expects the program will be completed within 18 months.
Analyst day Presentation on the Web
A live video webcast of Lubrizol's Analyst day presentation will be held today at 8:30 a.m.
Eastern Time on the Investors page of www.lubrizol.com and will be available for reply for six
months. Shortly following the event, a transcript will be posted on the Investors page of the
Web site in the Presentations section.
Non-GAAP Measures
Earnings as adjusted (Non-GAAP) is a measure of income that differs from earnings measured
in accordance with generally accepted accounting principles ("GAAP"). Earnings as adjusted is
net income attributable to The Lubrizol Corporation per the company's consolidated results,
adjusted for the exclusion of restructuring and impairment charges. Management believes that
both net income attributable to The Lubrizol Corporation and earnings as adjusted for exclusion
of these special charges assist the investor in evaluating the results of our core operating
activities and provides greater comparability with historical results where such charges may be
materially different. In addition, management and the Board evaluate results using net income
attributable to The Lubrizol Corporation and earnings as adjusted.
About The Lubrizol Corporation
The Lubrizol Corporation (NYSE: LZ) is an innovative specialty chemical company that
produces and supplies technologies to customers in the global transportation, industrial and
consumer markets. These technologies include 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 and performance coatings in
the form of specialty resins and additives. Lubrizol's industry-leading technologies in additives,
ingredients and compounds enhance the quality, performance and value of customers'
products, while reducing their environmental impact.
With headquarters in Wickliffe, Ohio, The Lubrizol Corporation owns and operates
manufacturing facilities in 17 countries, as well as sales and technical offices around the world.
Founded in 1928, Lubrizol has approximately 6,750 employees worldwide. Revenues for 2009
were $4.6 billion. For more information, visit www.lubrizol.com.
The Lubrizol Corporation
29400 Lakeland Boulevard,
Wickliffe, Ohio 44092-2298
Financial/Investor Contact
Mark Sutherland
440/347-1206
Web Site: www.lubrizol.com
Media Contact
Julie S. Young
440/347-4432
