Fuchs Petrolub AG / Half Year Results

03.08.2010 07:00

Dissemination of a Corporate News, transmitted by
DGAP - a company of EquityStory AG.
The issuer / publisher is solely responsible for the content of this announcement.

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FUCHS continues the sound development in the previous quarters into the second quarter of 2010

- Sales revenues close to pre-crisis levels
- Profit after tax increases to EUR 86.5 million
- Significant increases in the price of raw materials in the second half of the year

The first six months of 2010 at a glance


(1) By company location
(2) In property, plant and equipment and intangible assets
Performance
The growth in sales revenues enjoyed by the FUCHS PETROLUB Group continued to accelerate in the second quarter of 2010. At EUR 700.7 million, total revenue is 23.0% higher for the first half of the year than the first half of the previous year (569.6) and is only 2.5% below the pre-crisis level (EUR 718.7 million in the first half of 2008). The 23.0% growth in sales revenues in the first six months of 2010 was primarily driven by the regions of Asia-Pacific, Africa and North and South America. These regions significantly exceeded their 2009 and also their 2008 figures. The positive growth trend also continued in Europe.

The FUCHS PETROLUB Group not only recorded a significant increase in sales revenues, but also enjoyed above-average improvements in its earnings before interest and tax as well as its earnings after tax.
At EUR 279.8 million, gross profit was 35.2% or EUR 72.9 million up on the same period last year (206.9). Marketing & sales, administration and research & development expenses increased by 12.2% or EUR 17.3 million to a level of EUR 159.6 million (142.3) which means they increased at a lower rate than sales revenues. After taking into account other operating income and expenses and investment income, earnings before interest and taxes (EBIT) increased by 85.8% to EUR 123.9 million (66.7).
The financial result and the rate of taxation also enjoyed positive development. The financial result improved due to liquidity (-EUR 3.0 million compared to -EUR 4.7 million in the previous year) and the rate of taxation was lower due to the mix (28.5% compared to 30.5% in the previous year). As a result of this, the Group was able to double its profit after tax in the first half of 2010 over the previous year's figure to EUR 86.5 million (43.1).

Capital expenditure and investments in companies
The investments in property, plant and equipment and intangible assets by the FUCHS PETROLUB Group were EUR 14.7 million (15.2) in the first half of 2010. The main focuses of investment were the ongoing construction of the not yet completed facility in India, an acquisition of land in South Africa and the construction projects in Mannheim. A new research and development center and a sales center are currently under construction at the headquarters of the FUCHS PETROLUB Group.

Employees
As at June 30, 2010, the global workforce of the FUCHS PETROLUB Group consisted of 3,515 employees, which is 27 more than at the start of the year (3,488). The new appointments were made at the companies in the regions of Asia-Pacific and South America, which have been enjoying healthy growth.

Outlook
However, the marked increases in sales revenues and earnings recorded in the first half of the year due to a base effect cannot simply be extrapolated over the rest of the year. In addition to this, the gross margin is set to drop in the coming months due to increased raw material prices, which means that we are unlikely to see a repeat of the above-average earnings before interest and taxes (EBIT) recorded in the first six months for the second half of 2010. FUCHS strives to surpass the EBIT mark of EUR 200 million in 2010 and thereby generates the highest EBIT in the Group's history.

Mannheim, August 3, 2010

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:
http://www.fuchs-oil.com

Interim report for the first six months and second quarter 2010: http://www.fuchs-oil.de/qr_sixmonths.html

Press photos:
http://www.fuchs-oil.de/photogallery0.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.


03.08.2010 Ad hoc announcement, Financial News and Press Release distributed by DGAP. Media archive at www.dgap-medientreff.de and www.dgap.de

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Language:     English
Company:      Fuchs Petrolub AG
              Friesenheimer Str. 17
              68169 Mannheim
              Deutschland
Phone:        +49 (0)621 / 3802-0
Fax:          +49 (0)621 / 3802-190
E-mail:       contact-de.fpoc@fuchs-oil.de
Internet:     www.fuchs-oil.de
ISIN:         DE0005790406, DE0005790430
WKN:          579040, 579043
Indices:      MDAX
Listed: Regulierter Markt in Frankfurt (Prime Standard), Stuttgart; Freiverkehr in Berlin, Düsseldorf, München, Hamburg  
End of News DGAP News-Service  

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