Stefan Fuchs, the new Chairman of the Executive Board, took stock of the positive business year 2003 in front of almost 850 shareholders and several guests, who together represent a total share capital of 48% at the annual general meeting of FUCHS PETROLUB AG, the international lubricants company in Mannheim. Despite the demanding macro-economic situation, the group again was able to record a favourable business development, achieving record results in 2003 with sales at € 1,041 million and net income € 30.9 million. With a 50.8% increase in profits to € 9.2 million, the group has continued the positive profit development in the first quarter of 2004. Positive figures were also recorded in April so that the growth of group sales with an internal growth of 5.4 % and an external growth of 0.2 % - despite of currency translation effects with their negative impact of -3.6 % - rose to € 360 million, which is 2 % higher than for the same period during the last year (352). The group expects a double-digit percentage increase in net group income for the entire year 2004 in comparison to the previous year (30.9), although it is unlikely that the base-related increase rate achieved in the first quarter of 2004 will be repeated in following quarters.
Stefan Fuchs, the new Chairman of the Executive Board, spoke for the first time to shareholders at the annual general meeting, giving credit in his opening speech to his father's services.
Dr. Manfred Fuchs, after 41 successful years at the helm of the FUCHS group, retired as Chairman of the Executive Board on 31 December 2003, joining the Supervisory Board of FUCHS PETROLUB AG as Deputy Chairman. Stefan Fuchs emphasised that the group suffered no losses at any time during this period and that his father targeted business at an international level which today has proven a sound basis for the company's future development. "What's more, our business model - global outlook, comprehensive product range and an above-average degree of specialisation - has excelled itself over these last three difficult years. We have gained a substantial competitive edge by concentrating on lubricants, creating market niches which were then consistently exploited for all applications, and by providing a customer-friendly, competent and flexible service throughout the world', Fuchs continues.
In his speech, which was also available live on the Internet, Stefan Fuchs attaches great importance to the fact that the transition from one Chairman of the Executive Board to the other is stamped by continuity. The new Chairman of the Executive Board summarises these guidelines by referring to "the already familiar business model, a continued creation of shareholder value through improvements in the performance and cash flow as well as a shareholder-friendly dividend policy".
Shareholders' representatives of the German Associations for the Protection of Securities Owners (Deutsche Schutzvereinigung für Wertpapierbesitz and Schutzgemeinschaft der Kapitalanleger) as well as numerous private investors showed themselves well satisfied with the company's business development. The transparency of the annual report and the positive fundamental development of the company were mentioned in particular. The shareholders' representatives all confirmed that the interaction of corporate governance, debt reduction and growth worked well.
As 69.4 % of ordinary voting capital was present, the resolutions of Management, including amongst others the payment of a € 0.10 higher dividend of € 1.56 per ordinary and € 1.73 per preference share, were passed by an overwhelming majority of votes.
The shareholders also passed a resolution on the termination of existing authorised capital and the creation of new authorised capital and corresponding amendments to the articles of association.
Mannheim, 9 June 2004
FUCHS PETROLUB AG
Öffentlichkeitsarbeit
Friesenheimer Str. 17
68169 Mannheim
Tel.: +49 (0) 621 3802 105
The press release is also available on the Internet under www.fuchs-oil.de.
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.