Fuchs Petrolub AG / Quarter Results

06.11.2009 

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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EUR 82 million profit after tax for the first nine months of the year
- Earnings fall just 13% compared with the previous year despite a 19%     drop in sales revenues
- Measures to improve profitability are succeeding - Positive development of earnings in the Asia-Pacific, Africa region   - Free cash flow rose to EUR 125 million 


The first nine months of 2009 at a glance
(1) By company location
(2) In property, plant and equipment and intangible assets

Performance

The FUCHS PETROLUB Group recorded profit after tax of EUR 81.8 million (94.1) in the first nine months of 2009. The drop in earnings compared to the previous year came to just 13.1%, despite sales revenue falling 19.4% to EUR 873.2 million (1,083.5).

The figures for the first nine months of 2009 showed an improved earnings position compared to the previous quarters. Slight increases in sales revenues, an increase in the gross margin and reductions in costs were the reasons behind this. The gross profit of EUR 335.1 million (388.6), which fell by only 13.8%, saw better relative development than sales revenues. Personnel and overhead costs decreased by EUR 27.8 million or 11.5%.
As a result, the Group recorded earnings before interest and tax (EBIT) of EUR 122.7 million (144.5). The measures for improving profitability are clearly having a positive effect. After financing expenses of EUR 6.4 million (6.4), which remained at the same level as the previous year and after income taxes of EUR 34.5 million (44.0), earnings of EUR 81.8 million (94.1) were generated.

The excellent trend in results in the Asia-Pacific, Africa region also continued into the third quarter. At EUR 38.5 million (26.1), the region was able to improve on its results from the previous year by nearly fifty percent in the first nine months of 2009. The companies in the Middle East, China and South Africa were the key contributors to the increase in earnings.

At EUR 125.2 million (-14.4), the Group generated a high level of free cash flow in the first nine months of 2009. A significant reduction in inventories was one key contributor to this success. This made it possible to reduce financial liabilities by EUR 55.6 million and increase the Group's cash and cash equivalents by a further EUR 26.6 million. With equity of EUR 357.8 million and an equity ratio of 50.9%, the Group's net assets and financial position remain healthy.

Capital expenditure and investments in companies

Investments in property, plant and equipment and intangible assets were EUR 22.1 million (31.6) in the first nine months of 2009. Just under a half of this was due to the expansion of the site for the specialty business in Kaiserslautern. The facility has now been completed and is already in use.
At the beginning of August, FUCHS took over a specialty business for forging and special lubricants from DYLON Industries, Inc. in the US. This company generated revenue of USD 9 million in 2008 (EUR 7 million).
Employees

As at September 30, 2009, the global workforce of the FUCHS PETROLUB Group consisted of 3,536 employees. The reduction of 319 staff members since the end of 2008 is primarily due to the cost cutting measures that followed the significant drop in sales volume since the fourth quarter of 2008.
Outlook

For the fourth quarter, FUCHS expects to see a smaller drop in sales revenues than in the first nine months of the year. This is primarily due to the previous year's comparative figures being lower than those of the previous quarters. In terms of earnings before interest and tax, the Group's objective is to further reduce the disparity in earnings relative to the previous year. Alongside overall economic development, factors playing a key part in achieving this goal also include the price trends in the various markets. FUCHS expects to maintain the healthy free cash flow generated in the first nine months throughout the entire year.
Mannheim, November 6, 2009

FUCHS PETROLUB AG
Public Relations
Friesenheimer Str. 17
68169 Mannheim
Germany
Tel.: ++49 (0) 621 3802-124 


The information below can be accessed at the following web addresses:
Press release:
http://www.fuchs-oil.com


Quarterly report for the first nine months of 2009: http://www.fuchs-oil.de/fileadmin/fuchs_upload/pdf_addons/QR2009/QB78e.pdf

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


06.11.2009 Financial News 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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