Despite the market environment for raw materials remaining difficult, FUCHS PETROLUB AG achieved a good start to 2005 in the lubricants sector. Sales revenues in the first quarter of the year rose by €8.1 million or 3.0% to €275.0 million (266.9). The Group also continued the excellent development of the previous quarters in terms of profit - after adjustment of the previous year's earnings for regular goodwill amortization - with a growth rate of 14.9%, thus reaching a profit of €13.1 million (9.2). Earnings per ordinary and preference share in the first quarter of 2005 amounted to €1.61 and €1.65 respectively (1.39 and 1.43). Although raw material prices are expected to rise significantly over the current year, FUCHS PETROLUB is once again aiming to increase net Group income for 2005.
Internal growth in sales revenues, achieved mainly by the Americas, amounted to €7.0 million (2.6%), with external growth reaching €3.8 million (1.4%). This external growth was mainly in Europe as the result of the acquisition of the OVOLINE business. Currency translation effects amounted to €-2.7 million (-1.0%).
FUCHS PETROLUB achieved a net profit after taxes of €13.1 million (9.2) in the first quarter of 2005, an increase of €3.9 million or 42.4%. After adjustment of the previous year's figures for regular goodwill amortization, the growth in profits amounted to €1.7 million. The comparable results for 2004 took into account the fact that regular goodwill amortizations would cease in 2005 as the result of changes in international accounting standards (IFRS), having amounted to €2.2 million in the first quarter of 2004.
The main forces behind this good development were the positive development of sales revenues and cost-savings in all areas. Operating profit rose by 4.1% to €25.6 million (24.6). As other operating income also improved, earnings before interest, taxes and regular goodwill amortization (EBIT) increased by 10.2% to €24.8 million (22.5). Reductions in financial liabilities led to financing expenditure falling to €3.9 million (4.7). This meant an increase in earnings before taxes to €20.9 million (15.6) and earnings after taxes to €13.1 million.
Group capital expenditure on property, plant and equipment and intangible assets in the first quarter of 2005 amounted to €5.8 million (4.0). The main focuses for this investment were our sites in Mannheim, Stoke-on-Trent in England and Chicago in the USA.
On March 31, 2005, the FUCHS PETROLUB Group employed 4,145 people (4,305). The number of employees thus decreased by 160 (-3.7%) compared to the preceding year's equivalent date. The number of employees in Germany was 1,083, with 3,062 abroad.
The current business year will be marked by a significant increase in the cost of raw materials based on high sustained prices for crude oil, as well as an ongoing rise in Asia in demand for raw materials. Based on the continuation of our strategy of specialization and focus, as well as increasing our sales prices, further optimizing our cost structure, reducing our financial costs and ceasing regular goodwill amortization, FUCHS PETROLUB will altogether endeavor to achieve an increase in net Group income for the year 2005.
Mannheim, May 13, 2005
FUCHS PETROLUB AG
Public Relations
Friesenheimer Str. 17
68169 Mannheim
Phone: (0621) 3802 - 105
The press release can also be found on the Internet at www.fuchs-oil.de.
The quarterly report:
www.fuchs-oil.de/fileadmin/fuchs_upload/pdf_addons/English/QB_2005/QB1_englisch_2005.pdf
Important note
This Press Information contains statements about future development that are based on assumptions and estimates by the management of FUCHS PETROLUB AG. Even if the management is of the opinion that these assumptions and estimates are accurate, future actual developments and future actual results may differ significantly from these assumptions and estimates due to a variety of factors. These factors can include changes to the overall economic climate, changes to exchange rates and interest rates and changes in the lubricants industry. FUCHS PETROLUB AG provides no guarantee that future developments and the results actually achieved in the future will agree with the assumptions and estimates set out in this press release and assumes no liability for such.