* Sees Q2 adj EPS $2.02 vs est of $1.24

* Shares rise 9 pct (Recasts; adds details, analyst comment, updates share movement)

By Adveith Nair

BANGALORE, July 15 (Reuters) - Specialty chemicals company Lubrizol Corp (LZ.N: Quote, Profile, Research) guided toward second-quarter earnings well above analysts' consensus view, sending its shares up as much as 9 percent.

The upside is primarily due to disciplined margin management at the company's Lubrizol Additives segment, and its Lubrizol Advanced Materials unit is also benefiting from aggressive and permanent cost reductions, Deutsche Bank analyst David Begleiter said.

Chemical companies have been forced to cut costs as demand from the auto, electronics and home building sectors has slumped amid the worst economic downturn in decades.

Earlier this year, Lubrizol said it had initiated reductions in its operating and capital budgets.

Quarterly operating margins at Lubrizol Additives segment are likely expected to be about 25 percent, a high watermark for this business, as it benefits from a rise in base oil prices, analyst Begleiter said.

Although he does not expect the level of profitability to be sustainable, he still sees Lubrizol Additives margins settling at 16 percent or more, well above the historical range of 10 percent to 13 percent.