Lubrizol raises its '09 outlook for a 2nd time

CLEVELAND (AP) — Lubrizol Corp. on Thursday increased its full-year guidance for a second time as the vehicle lubricant and fuel additive maker reported its third-quarter profit more than doubled on a decline in manufacturing costs.

The company now projects income of $6.82 to $7.02 per share for the year. In September, the company raised its outlook to a range of $6.10 to $6.40 per share from a prior estimate of $5.70 to $6 per share.

Analysts polled by Thomson Reuters expect profit of $6.89 per share.

CEO James Hambrick cautioned that raw material costs and potential inventory reductions made forecasting this year's results particularly difficult.

"Our outlook reflects some upward pressure on raw materials, particularly in additives where we are already taking appropriate pricing action," he said.

"Additionally, in this atypical year, forecasting sales volumes for the fourth quarter is more challenging than usual given the potential for year-end inventory reductions by our customers."

Share rose $1.24 to $70.46 shortly after the market opened.