- Sales revenues increased to around EUR 1.7 billion
- Earnings before interest and tax of EUR 264 million (250)
- Dividends set to be increased to EUR 1.00 per preference share
The financial year 2011 at a glance
| (Amounts in EUR million) | 2011 | 2010 |
|---|---|---|
| Sales revenues (1) | 1,668 | 1,459 |
| Europe | 1,018 | 875 |
| Asia-Pacific, Africa | 421 | 382 |
| North and South America | 283 | 245 |
| Consolidation | -54 | -43 |
| Earnings before interest and tax (EBIT) | 264 | 250 |
| Profit after tax | 183 | 172 |
| Earnings per share in EUR | ||
| Ordinary share | 2.56 | 2.39 |
| Preference share | 2.58 | 2.41 |
| Dividends per share in EUR | ||
| Ordinary share (2) | 0.98 | 0.88 |
| Preference share (2) | 1.00 | 0.90 |
| Free cash flow | 58 | 78 |
| Capital expenditure (3) | 36 | 32 |
| Employees (as at December 31) | 3,722 | 3,584 |
(1) By company location
(2) 2011 dividend proposal to be submitted to the Annual General Meeting on May 9, 2012
(3) In property, plant and equipment and intangible assets
Performance
In 2011, the FUCHS PETROLUB Group increased its sales revenues year on year by EUR 209 million or 14.4% to EUR 1,668 million (1,459). The organic growth in sales revenues was EUR 243 million or 16.7%. At EUR -25 million, external growth was negative on balance. Currency exchange effects amounting to EUR -9 million only had a minimal impact on the development of sales revenues.
In all three world regions, the FUCHS companies achieved double-digit organic increases in sales revenues in 2011. Organic growth was driven by significant increases in sales volumes and by higher sales prices as a result of higher raw material costs.
FUCHS PETROLUB exceeded the record earnings of the previous year with regard to both earnings before interest and tax (EBIT) and profit after tax. This was based on a higher gross profit, which increased at a lower rate than sales revenues. Nevertheless the increase in gross profit exceeded the business and growth-related increases in personnel and operating costs.
Earnings before interest and tax (EBIT) increased by EUR 14.1 million or 5.6% to EUR 264.2 million (250.1). Profit after tax is EUR 11.5 million or 6.7% above the previous year's level and at EUR 183.1 million (171.6) sets a new record.
Earnings per share were EUR 2.56 (2.39) per ordinary share and EUR 2.58 (2.41) per preference share.
Capital expenditures
Compared to the previous year, investments in property, plant and equipment and intangible assets increased by around 13% to EUR 36 million (32) in 2011.
The largest single item was the new research and development center in Mannheim, which will be completed and utilized in the first half of 2012. In 2011 we acquired land and land usage rights in Russia and China where we will press ahead with the construction of new plants. In the US and Australia we have started to modernize and expand our plants, while the activities aimed at purchasing a property in Brazil intended for the construction of a new plant are well under way.
Employees
As at December 31, 2011, the FUCHS PETROLUB Group employed 3,722 people worldwide (3,584). The total number of employees therefore increased by 138 or 3.9% compared to the previous year. The largest increase was in Europe, where the number increased by 88 people year on year (+3.9%). 30 more people were employed in Asia-Pacific (+3.6%) and 20 more people were employed in North and South America (+4.0%) compared to December 31, 2010.
Forecast
The Group's planning for 2012 is based on the assumption that the global economy will continue to grow slightly and will be spared from further crisis. Furthermore, the planning is based on the assumption that raw material costs will remain stable in 2012.
In view of these parameters, the Group expects a growth in sales revenues which paired with a stable gross margin will more than compensate for the rise in other costs. Therefore FUCHS PETROLUB intends to exceed the earnings before interest and tax achieved in 2011.
Mannheim, March 22, 2012
FUCHS PETROLUB AG
Public Relations
Friesenheimer Str. 17
68169 Mannheim
Germany
Tel.: ++49 (0) 621 3802-1124
E-Mail: tina.vogel@fuchs-oil.de
The information below can be accessed at the following web addresses:
Press release:
www.fuchs-oil.com
Annual report 2011:
www.fuchs-oil.com/annual_report11.html
Press photos:
www.fuchs-oil.com/pressphotos1.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.