- Sales revenues significantly increased to just under EUR 1.5 billion
- Earnings before interest and tax of EUR 250.1 million (179.9)
- Dividends set to be considerably increased to EUR 2.70 per preference share
- Share split at a ratio of 1:3 planned
The financial year 2010 at a glance
| (Values in EUR million) | 2010 | 2009 |
|---|---|---|
| Sales revenues (1) | 1,458.6 | 1,178.1 |
| Europe | 874.7 | 742.5 |
| Asia-Pacific, Africa | 382.1 | 289.8 |
| North and South America | 245.1 | 176.9 |
| Consolidation | -43.3 | -31.1 |
| Earnings before interest and tax (EBIT) | 250.1 | 179.9 |
| Profit after tax | 171.6 | 121.4 |
| Earnings per share in EUR | ||
| Ordinary share | 7.18 | 5.07 |
| Preference share | 7.24 | 5.13 |
| Dividends per share in EUR | ||
| Ordinary share (2) | 2.64 | 1.64 |
| Preference share (2) | 2.70 | 1.70 |
| Free cash flow | 77.7 | 180.8 |
| Capital expenditure (3) | 32.4 | 29.9 |
| Employees (as at December 31) | 3,584 | 3,488 |
(1) By company location
(2) 2010 dividend proposal to be submitted to the Annual General Meeting on May 11, 2011
(3) In property, plant and equipment and intangible assets
Performance
In 2010, the FUCHS PETROLUB Group countered the drop in sales revenue of the previous year caused by the crisis. The organic growth in sales revenues of EUR 208.5 million (-215.0) virtually made up for the decline of the previous year. Taking into account external growth of EUR 6.1 million and the positive effects of currency exchange rates of EUR 65.9 million, total sales revenues increased by EUR 280.5 million or 23.8%. At EUR 1,458.6 million (1,178.1), Group sales revenues therefore reached their highest level ever recorded.
At the same time, the FUCHS PETROLUB Group recorded its highest earnings of all time in the year following the financial and economic crisis. Significantly increased sales revenues in all regions, accompanied by a below-average increase in costs, formed the basis of this success.
The total increase in sales revenues of 23.8% was predominantly due to volume effects. Increases in the costs of raw materials over the course of the year caused the gross margin to fall, although at 38.9% (38.8%) it was still possible to maintain the previous year's overall level. At the same time, sales and distribution, administration and R&D expenses only went up by 14.9%. Beside variable costs such as freight costs, personnel costs also increased. New appointments in sales positions were one reason for the rise in personnel costs. Earnings before interest and tax (EBIT) grew considerably by 39.0% or EUR 70.2 million to EUR 250.1 million (179.9).
Net profit after tax increased by 41.4% or EUR 50.2 million to EUR 171.6 million (121.4) and the net profit margin also increased to 11.8% (10.3%).
Capital expenditure and investments in companies
At EUR 32.4 million (29.9), the FUCHS PETROLUB Group invested around 8% more in property, plant and equipment, as well as intangible assets (excluding acquisitions) than in the previous year. The new facility in Mumbai (India) began production in December, and the second half of the year saw the move into the new Sales Center in Mannheim. In parallel to this, the shell of the new R&D Center was completed in Mannheim. In Johannesburg (South Africa), a neighboring property with buildings was acquired over the course of the year. In addition to this, further projects which FUCHS is keen to use to drive forward future growth were continued.
Employees
As at December 31, 2010, the FUCHS PETROLUB Group employed 3,584 people worldwide (3,488). The total number of employees therefore increased by 96 people or 2.8% compared to the previous year. The largest increase was in the Asia-Pacific, Africa region, where the number increased by 47 people year on year (+6%). 34 more people were employed in the Europe region (+1.5%) and 15 more people were employed in the Americas (+3.1%) compared to December 31, 2009.
Significant increase in dividends planned
The Supervisory Board and Executive Board will propose to the Annual General Meeting on May 11, 2011 that the dividend for 2010 be raised considerably by EUR 1.00 per share to EUR 2.64 (1.64) per ordinary share and EUR 2.70 (1.70) per preference share compared to the previous year. An increase in the total dividend payout to EUR 63.2 million (39.5) would result in an increase of the dividends of 61.0% per ordinary share and 58.8% per preference share. This dividend proposal is an expression of FUCHS' confidence in its positive development.
Share split planned
Furthermore, the Annual General Meeting is to make a decision on a share split at a ratio of 1:3. Each no-par-value share with a current pro rata amount of share capital of EUR 3.00 is to be replaced by three no-par-value shares with a pro rata amount of share capital of EUR 1.00 each. The Executive Board believes that this will further increase the liquidity and attractiveness of the share for investors.
Forecast
For 2011 as a whole, the FUCHS PETROLUB Group expects to see the economic environment remain positive and is planning increases in sales revenues in all three global regions. Hereby, FUCHS assumes that the global economy will not be significantly affected by geopolitical tensions, the debt crisis in many countries, the increasing raw material costs and, most recently, the natural and nuclear disaster unfolding in Japan.
FUCHS expects 2011 to be another successful year for the Group, taking into account the opportunities and risks of future developments. The Group expects its market position to see continuous improvement, both in the emerging markets and in the highly competitive established markets. Overall, FUCHS will strive to tie on to the record level of earnings before interest and tax achieved in 2010.
Mannheim, March 24, 2011
FUCHS PETROLUB AG
Public Relations
Friesenheimer Str. 17
68169 Mannheim
Germany
Tel.: ++49 (0) 621 3802-1124
The information below can be accessed at the following web addresses:
Press release:
www.fuchs-oil.com
Annual report 2010:
www.fuchs-oil.com/annual_report10.html
Press photos:
www.fuchs-oil.com/pressphotos.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 agree with the assumptions and estimates set out in this press release and assumes no liability for such.