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Calumet's sales, profit boom after acquisitions

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Calumet Specialty Products Partners LP’s profit more than doubled in the third quarter, helped by huge gains in the fuel-products side of its business following several acquisitions.

The Indianapolis-based crude oil processor, which makes lubricants for industrial and automotive uses, on Wednesday reported earnings of $42.4 million, up from $19.6 million in the third quarter a year ago.

Quarterly sales increased 52 percent, to $1.2 billion.

That growth was largely fueled by Calumet’s $442 million purchase of a refinery in Superior, Wisc., from Murphy Oil Corp., Calumet said.

The biggest gain was on the fuel products side of the business, which saw gross profit rise to $67.8 million from $8.8 million a year earlier.

The specialty products segment saw a more meager, 3-percent gain to its gross profit of $90.6 million. The operation, which produces waxes, solvents and lubricants, has increased its gross profit 27 percent this year.

Calumet has spent about $1 billion on acquisitions since October 2011, including Royal Purple Inc. for $333 million and Montana Refining Co.  Inc. for $201 million.

Company shares were up 51 cents, to $31.63, in early trading Wednesday.

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