For the globally operating lubricants producer FUCHS PETROLUB AG in Mannheim, Germany, the first half of 2002 was extremely successful in terms of sales, profits and cash flow. Sales rose by 13.5 % to € 542.3 million (478.0) and the operating profit by 32 % to € 43.3 million (32.7). The half-year net income more than doubled, rising by 111 % to reach € 12.0 million (5.6). In conformity with IAS, goodwill was for the first time amortized in its full amount of € 5.4 million and deducted from the profit on a pro rata temporis basis. The half-year earnings per share rose to € 7.1 (4.4) before and € 4.8 (2.1) after goodwill amortization.
The growth in sales was fueled by external growth of 10.6 % and internal growth of 4.3 %. The effects of currency translation accounted for - 1.4 %. The biggest rise in sales (€ + 54.4 million or 18.2 %) came from Europe. One significant factor here was the takeover of the remaining 50 % stake in what is now FUCHS EUROPE SCHMIERSTOFFE in Mannheim at the beginning of 2002. But Asia/Pacific and Africa, too, reported a significant rise in sales, of € 10.1 million or 15.8 %, most of it achieved in China and Australia.
Earnings performance was extremely gratifying. Substantially increased sales, overproportionally improved gross income and an underproportional rise in selling and administration costs meant that the operating result rose by 32.4 % to reach € 43.3 million. The group's operating profit margin is thus 8.0 % (6.8).
After deducting goodwill amortization at the preceding year's figure of € 5.4 million and slightly lower financial expenses of € 12.9 million (13.1), pretax profits come to € 23.4 million (15.0). As a result of the significantly reduced taxation ratio, now at 48.6 % (62.3), consolidated net income has been more than doubled compared to the preceding year, at € 12.0 million (5.7).
Capital expenditures on tangible and intangible assets during the year's first half totaled € 12.2 million (14.1). Major items here included plant equipment for the new facility in Kaiserslautern and for expansion of a grease factory in the USA.
The free cash flow has thus reached a record level at € 20.6 million (- 8.7); it was significantly improved by the group's buoyant performance, the initiatives taken to reduce net current assets, and the lower investment ratio.
On 30 June 2002, the FUCHS Group was employing 4,132 people (3,966). Due to consolidation factors, the number of employees increased by 166 (+ 4.2 %) compared to the previous year's equivalent date. 1,143 people were employed in Germany and 2,989 abroad.
Following the decline in demand during 2001, the global lubricants market is showing modest signs of recovery. The FUCHS PETROLUB Group's comprehensive, top-quality business portfolio, its specialization leadership, and its global presence continue to provide solid foundations for lasting success. Sales will exceed € 1 billion for the first time in 2002. Net income for the year will significantly surpass the preceding year's figure on a comparable basis.
Mannheim, 30 August 2002
FUCHS PETROLUB AG
Public Relations
Friesenheimer Str. 17
D-68169 Mannheim
Tel.: +49(0)621 3802-104
The press release is also available on the internet under www.fuchs-oil.de.