The globally operating lubricants producer FUCHS PETROLUB AG in Mannheim continued to perform successfully during the first quarter of 2003. Internal growth came to € 15.2 million or 5.7 %, though due to exchange rate factors the sales figures, at € 263.4 million, remained more or less at the preceding year's level (265.7). The profit after taxes, however, showed a significantly overproportional rise of 32.6 % to reach € 6.1 million (4.6). In accordance with international financial reporting standards (IFRS) goodwill has been amortized in full pro rata temporis and deducted from profits. Before this goodwill amortization, the quarterly profit after taxes came to € 8.8 million (7.3). The quarterly profit per share increased to € 3.6 (3.0) before and € 2.4 (1.8) after goodwill amortization. The earnings situation will remain good, though in the current quarter the benchmark is an exceptionally challenging one, since the preceding year's equivalent period has seen the best quarterly result in the group's history.
Despite gratifying internal sales growth, this fine performance was significantly overshadowed by effects from currency translation, at € -21.3 million or -8.0 %. Thus even after factoring in external growth of € 3.8 million (+1.4 %) total sales fell by € 2.3 million or 0.9 % to € 263.4 million (265.7).
The regional breakdown again shows that the Asia-Pacific, Africa region, with sales growth of 15.2 %, is the principal focus for internal growth. The companies in Bangladesh and in the United Arab Emirates now consolidated for the first time, together with the group company located in Hungary, were the foremost contributors to external growth. Sales at the European companies were in most cases at or above the level of 2002's first quarter. Exchange rate shifts had a significant effect on the sales figures of the North and South America region.
With very healthy earnings during the first quarter of 2003, the group progressed last year's successful performance. Although the sales figures stagnated, due to exchange rate factors, both gross income and operating result were up in absolute and relative terms. The reasons for the rise in gross income to € 96.8 million (95.7) and in the operating result to € 20.6 million (19.5) are primarily rooted in cost reductions. The gross margin was 44.8 % (44.3), while the operating margin reached 7.8 % (7.3).
Earnings before interest and taxes (EBIT) rose to € 17.3 million (16.4) and were thus 5.5 % up on the preceding year's equivalent figure. The EBIT margin reached 6.6 % (6.2).
Both the financing and tax expenses were down on the preceding year's figure in both absolute and relative terms. Thus net income after taxes showed a significantly overproportional rise of 32.6 % to reach € 6.1 million (4.6).
The group's capital expenditure on tangible and intangible assets, with the exception of goodwill, came to € 3.7 million (4.4). About a quarter of this sum was invested at the facilities in Mannheim.
On March 31, 2003, the FUCHS PETROLUB Group was employing 4,202 people (March 31, 2002: 4,145). The number of employees thus increased by 48 people (+1.2 %) over the preceding year's equivalent date. 1,160 of these were being employed in Germany, and 3,042 abroad.
The FUCHS PETROLUB Group is thus prepared to meet and master external uncertainties, and can operate successfully despite the currently disappointing macro-economic environment, and other difficulties. Sales are expected to reach € 1.1 bn. Earnings will continue to be healthy, even though the benchmark for the ongoing quarter is particularly challenging, since from April to June 2002 the group achieved the best quarterly result in its entire history, at € 7.4 million.
Mannheim, 15 May 2003
FUCHS PETROLUB AG
Public Relations
Friesenheimer Str. 17
D-68169 Mannheim
Tel.: +49 (0) 621 3802-104
This press release is also available on the internet under www.fuchs-oil.de.