- Sales revenues grow by 10% to EUR 1,819 million
- Earnings before interest and tax increase by 11% to EUR 293 million
- Dividend to be raised by 30% to EUR 1.30 per preference share
The financial year 2012 at a glance
| (Amounts in EUR million) | 2012 | 2011 (2) |
|---|---|---|
| Sales revenues (1) | 1,819.1 | 1,651.5 |
| Europe | 1,080.7 | 1,006.7 |
| Asia-Pacific, Africa | 486.8 | 412.3 |
| North and South America | 320.3 | 282.6 |
| Consolidation | -68.7 | -50.1 |
| Earnings before interest and tax (EBIT) | 293.0 | 263.5 |
| Profit after tax | 207.3 | 183.1 |
| Earnings per share in EUR | ||
| Ordinary share | 2.90 | 2.56 |
| Preference share | 2.92 | 2.58 |
| Dividends per share in EUR | ||
| Ordinary share | 1.28 (3) | 0.98 |
| Preference share | 1.30 (3) | 1.00 |
| Free cash flow | 140.4 | 59.0 |
| Investments in fixed assets | 71.4 | 37.0 |
| Employees (December 31) | 3,773 | 3,669 |
(1) By company location.
(2) Previous year's figures adjusted, see "changes in the accounting policies" in the notes to the consolidated financial statements.
(3) 2012 dividend proposal to be submitted to the Annual General Meeting on May 8, 2013.
Performance
2012 was a successful year for the FUCHS PETROLUB Group. Sales revenues and earnings enjoyed double-digit growth.
FUCHS increased its sales revenues to EUR 1,819.1 million in 2012. The previous year's figure of EUR 1,651.5 million was therefore exceeded by EUR 167.6 million or 10.1%. At EUR 107.0 million, almost two thirds of the increase in sales revenues can be attributed to organic growth. Added to this is an increase of EUR 58.8 million due to currency translation effects and EUR 1.8 million from external growth.
FUCHS PETROLUB recorded organic growth in all three global regions. Every region achieved an increase in sales volumes, although the relative increases varied as a result of weaker economic development in several countries. Added to this were sales price increases due to higher costs of raw materials.
Earnings before interest and tax (EBIT) increased by 11.2% to EUR 293.0 million (263.5) and profit after tax rose by 13.2% to EUR 207.3 million (183.1). At the same time, personnel and overhead costs for selling, distribution, administration as well as research and development increased by EUR 29.4 million or 8.5% to EUR 376.1 million (346.7).
Earnings per ordinary and preference share increased by around 13.2% year-on-year to EUR 2.90 (2.56) and EUR 2.92 (2.58) respectively.
Dividends
In the light of the successful business performance and solid financial position, the Executive Board and Supervisory Board of FUCHS PETROLUB AG will propose a dividend increase of around 30% to the Annual General Meeting which will take place on May 8, 2013. The dividend per preference share would amount to EUR 1.30 (1.00), and per ordinary share to EUR 1.28 (0.98).
Capital expenditures
The growth initiative was continued in 2012. At EUR 71.4 million (37.0), total investments in property, plant and equipment and intangible assets (excluding acquisitions) as well as in financial assets virtually doubled in 2012 relative to the previous year.
The investments in property, plant and equipment and intangible assets totaling EUR 61.0 million (35.6) focused on the completion of the new research and development center in Mannheim, the expansion and modernization of the facility near Chicago and the construction of a new manufacturing site in Kaluga, Russia. We are planning to open the Kaluga site in the first six months of 2013. Furthermore, construction of a new plant in Yingkou in Northern China commenced in 2012. In addition to these developments, investments were made to replace and modernize equipment at existing facilities at several of the Group's other locations and to install fire protection equipment.
In Turkey, the Group invested EUR 10.1 million within the scope of acquiring an automotive lubricants business by a joint venture company.
Employees
As at December 31, 2012, the FUCHS PETROLUB Group employed 3,773 people worldwide (3,669). The total number of employees therefore increased by 104 or 2.8% compared to the previous year. The largest increase was in the Europe region, where the workforce increased by 78 compared to the previous year (+3.3%). Compared to December 31, 2011, 21 more people were employed in the Asia-Pacific, Africa region (+2.6%) and five more people were employed in North and South America (+1.0%).
Forecast
Due to its broad regional base and activities in many niche markets, in its planning for 2013, the FUCHS PETROLUB Group expects to be able to continue its growth policy. This is based on the assumption that, despite the known issues, the global economy will enjoy positive development in 2013. In the light of this economic framework, the Group plans for organic growth in the low single-digit percentage range in 2013. To what extent external growth will be possible through acquisitions or whether sales revenues will be influenced by changes in currency exchange rates remains to be seen. Moreover, the Group anticipates further growth in earnings before interest and tax (EBIT) and profit after tax.
Mannheim, March 20, 2013
FUCHS PETROLUB AG
Public Relations
Friesenheimer Straße 17
68169 Mannheim
Germany
Tel.: 0049 (0)621 3802 1104
E-mail: tina.vogel@fuchs-oil.de
The information below can be accessed at the following web addresses:
Press release:
www.fuchs-oil.com
Press photos:
www.fuchs-oil.com/photogallery02.html
Important note
This press release contains statements about future developments 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 in 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 match the assumptions and estimates set out in this press release and assumes no liability for such.