|ConocoPhillips Announces Price Increase
ConocoPhillips advised its marketers today of
a price increase on finished lubricant taking
effect on August
27th. The increase will bump prices up as
much as 16% depending on the product.
As with most increases, marketers are told
this one is driven by the recent increases in
the cost for base oil, additives, and
|Clarification on Castrol's Increase
On July 22 JobbersWorld reported that Castrol
announced a revision to the price increase it
previously announced on June 18th that was
due to take effect on August 4 and the
revision will move Castrol up as much as 26%.
As a point of clarification, this price
increase does not apply to Castrol Industrial
lubricants. The Last announced price increase
for Castrol Industrial lubricants was on June
18th. Castrol Industrial announced at that
time there would be an increase of 5 to 15%
effective July 1, 2008 on its industrial
|Ashland Reports Third Quarter Income
Ashland Inc. today announced preliminary net
income for the quarter ended June 30, 2008,
the third quarter of its fiscal year, of $72
million, or $1.13 per share. In the
prior-year June quarter, net income was $100
million, or $1.58 per share.
Specific to its Valvoline division, Ashland's
announcement says Valvoline's third-quarter
operating income of $26.1 million compares
with $27.9 million in the year-ago quarter, a
Sales and operating revenues of $428 million
increased 5 percent over the June 2007
quarter, largely due to price increases.
Valvoline's total lubricant volume increased
1 percent, primarily from the Do-It-For-Me
installer channel and international sales,
partially offset by reduced volumes in the
Do-It-Yourself channel. Gross profit as a
percent of sales declined 1.2 percentage
points versus the 2007 June quarter,
primarily a result of the lag in timing of
price increases to customers relative to base
oil and additive cost increases received by
|Valvoline Says SynPower Has 4 Times Better Wear Protection Than Mobil 1
Valvoline launched a national advertising
campaign this month that takes on competitor
Mobil 1, claiming Valvoline SynPower has "four
times better wear protection than Mobil 1."
According to Valvoline, the claim is based on
the industry standard Sequence IVA test. The
Sequence IVA is the industry standard test
for determining wear performance of an engine
oil and is required to meet the API SL and SM
requirements. Multiple tests showed that
Valvoline SynPower provided four times better
wear protection than Mobil 1, as measured in
these tests of 5W-30 grades.
"We stand behind the ASTM standard tests
completed recently at our own fully certified
engine testing laboratory and at an
independent laboratory," said Valvoline
Marketing Director John Stotz. "Consumers
tell us it is wear protection that matters
most to them," he said.
Key to Valvoline's anti-wear chemistry is its
zinc/phosphorus additive known as ZDDP.
Increasingly lower levels of phosphorus in
motor oil have been the subject of concern to
automotive enthusiasts. SynPower's low
volatility ZDDP formulation causes the
phosphorus to stay in the oil longer,
according to Valvoline Technical Director
Thom Smith. Phosphorous bonds to metal parts
in the engine to form a 'sacrificial' layer
that helps protect against engine wear, Smith
Valvoline advertising includes print,
radio and on-line banner ads.
JobbersWorld Note: Gearhead forums and
blogs are already buzzing about the Valvoline
Claim. Also, it's interesting to hear
marketers already dropping the "wear
protection" from the claim and simply saying
it's "four times better."
|ExMo Says - Prove It
ExxonMobil says it's aware of Valvoline's
advertising claims that Valvoline SynPower
offers four times better wear protection than
At the same time, however, its says
ExxonMobil is "not aware of any accurate
technical data to support the claim"
Moreover, they have requested Valvoline to
provide the "substantiating data to support
this claim immediately."
Stay Tuned....This should be
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