April 17, 2007

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  • CHS Acquires Nor-Lakes Liquid Lubricant Business and The Farm-Oyl Company
  • Lubrizol Looking Good
  • Jig-A-Loo; You gotta love it!
  • Conocophillips Lubricants API CJ-4 Compatible Heavy Duty Engine Oils Meet Caterpillar Specifications

  • CHS Acquires Nor-Lakes Liquid Lubricant Business and The Farm-Oyl Company

    CHS Inc., a leading energy, grains and foods company, has signed a purchase agreement to acquire the liquid lubricants business of Nor-Lakes Services Midwest, Inc., of Hugo, Minn., and The Farm-Oyl Company of St. Paul, Minn., as part of a strong commitment to growing the CHS lubricants business. The closing on the purchase is expected to occur April 30, 2007.

    Nor-Lakes Services Midwest is a private label lubricants manufacturer founded in 1988 to produce private label lubricants and greases, including the Farm-Oyl® brand. The Farm-Oyl Company has been marketing heavy-duty lubricants to Upper Midwest customers since 1929.

    "This new acquisition reflects our commitment to being a dependable, long-term lubricants supplier, and allows us to optimize our manufacturing facilities," said Anwer Hussain, Senior Vice President of Lubricants. "Farm-Oyl, like CHS, has a deep-rooted tradition of meeting the tough demands of agricultural and commercial customers with reliable lubricants for more than 75 years."

    James Taglia, Nor-Lakes Services Midwest President, said all liquid lubricant production would be transferred from the Hugo location to CHS facilities effective May 1. "We're excited about this acquisition. CHS has a strong commitment to being a long-term, dependable supplier and is equally committed to continuing to serve our customers," Taglia added.

    "The Farm-Oyl Company was founded on the values of commitment, integrity and hard work," said Robert Larson, President and CEO of The Farm-Oyl Company. CHS shares those values, and will continue to be a dependable supplier of quality Farm-Oyl branded lubricants, " Larson added.

    CHS produces Cenex®-branded and other lubricants at three ISO-9001:2000-certified manufacturing facilities in Minnesota, Ohio and Texas. The company markets a full line of lubricants for use in agricultural, commercial, recreational and industrial equipment. Nor-Lakes Services Midwest's NL Grease LLC will continue to produce and distribute grease products from its Kansas City manufacturing facility. Terms of the joint acquisition were not disclosed.

    Lubrizol Looking Good

    The Lubrizol Corporation announced that it expects to report strong earnings performance for the first quarter of 2007.

    In the first quarter of 2006, the company reported earnings from continuing operations of $.66 per diluted share, including a restructuring charge of $.02 per share. Excluding the restructuring charge, adjusted earnings from continuing operations for the first quarter of 2006 were $.68 per diluted share. Comparable adjusted earnings from continuing operations for the first quarter of 2007, excluding the restructuring credit, are expected to be in the range of $.98 per diluted share. First Call analyst earnings consensus is currently $.78 per share.

    Lubrizol says the strong performance compared to the first quarter a year ago was primarily the result of higher revenues, driven by the improvement in the combination of price and product mix. In addition, shipment volumes in the quarter were higher than expected, and reflected a return to normal order patterns.

    Jig-A-Loo; You gotta love it!

    No sooner does WD-40 announce to Wall Street that 2Q earnings exceeded expectations and net income rose to $8.9 million, does some "Jig-A-Loo" start making a lot of noise in the US market to charm the rust off WD's consumers with its youthful enthusiasm, witty sense of humor, alluring orange and blue suit, and seemingly effortless ability to lubricate stuck objects without the use of oil, grease, wax, or detergent. And oh yeah, they say this Jig-A-Loo smells good too.

    Launched in the Canadian mass retail market in 1998, and just now making it big in the US with its presence in Home Depot and other stores, Jig-A-Loo is a spray lubricant manufactured by Jig-A-Loo World out of Montreal Canada. It's formulated to stop squeaks, unstick "just about anything," and protect against rust. It addition it's said to be an exceptional water repellent. According to it makers, Jig-A-Loo is essential for hundreds of uses around the house, garage, workshop, garden, and sports lockers.

    Sound familiar?

    You bet its does if you get a paycheck from WD-40 every two weeks. Because based on everthing we are reading and hearing about this young "Jig-A-Loo" out of Quebec Canada, it's willing and ready to take on that ubiquitous blue and yellow can with the ever missing red straw. And if you don't think so, consider what might have been going through the mind of David Gilmour's head, CEO of Jig-A-Loo, when he said "we are going to shake up this dull, dormant category that hasn't been shaken up." Also consider that Jig-A-Loo says they already managed to take away 50% of the market share from WD-40 in the Great North.

    Maybe there is a message between the lines of this story that lubricant marketers and independent lubricant manufacturers can learn from. That message speaks to branding, the power of good marketing, and the courage to take on the big guy.

    Conocophillips Lubricants API CJ-4 Compatible Heavy Duty Engine Oils Meet Caterpillar Specifications

    ConocoPhillips Company, the fourth largest U.S. lubricants supplier, announced that its line of API CJ-4 diesel engine oils are also compliant with the new Caterpillar Engine Crankcase Fluid (ECF) -2 and ECF-1-a specifications. These products, which were previously qualified as Cat ECF-3, were designed for use in the 2007 or later model engines equipped with diesel particulate filters (DPF) and catalysts for exhaust aftertreatment, according to Reginald Dias, director, commercial products, ConocoPhillips Lubricants.

    "We're pleased that by meeting Cat ECF-2 and ECF-1-a certifications, our API CJ-4 products are now approved for use in a wide range of Caterpillar off-highway equipment that would have previously required alternative engine oils," said Dias.

    ConocoPhillips API CJ-4 products now approved as ECF-3, ECF-2 and ECF-1-a compatible are:

    • Guardol ECT, Synthetic Blend 15W40
    • Fleet Supreme EC, 15W40
    • Kendall Motor Oil Super-D XA, Synthetic Blend 15W40

    In addition, ConocoPhillips' entire line of API CI-4 PLUS engine oils are now certified as Cat ECF-2 and Cat ECF-1-a. These products are primarily designed for use in equipment manufactured prior to 2007 and in off-highway equipment not requiring API CJ-4 oils


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