Fuchs Petrolub AG: Record earnings for the sixth time in succession - dividend to increase significantly again
Fuchs Petrolub AG / Final Results/Final Results
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FUCHS: Record earnings for the sixth time in succession - dividend to increase significantly again
FUCHS PETROLUB AG, the international lubricants company, posted another significant increase in profits after tax in the past financial year. Free cash flow also saw a double-digit increase. The Executive and Supervisory Boards recommend a 50 per cent increase in dividends to the Annual General Meeting.
o Earnings before interest and tax (EBIT) up 21% o Earnings after tax up 24%
o Free cash flow up 49%
o €1.50 dividend per preference share
Internal growth in the FUCHS PETROLUB Group in 2007 amounted to 5.5%. Both in Europe and in Asia the Group achieved significant growth in sales revenue, which more than made up for the decline in sales in the USA. Particularly worthy of note is the double-digit growth in sales achieved by the German, central and eastern European, and Chinese companies. In the first half of 2007 the Group acquired two relatively small specialty businesses in Brazil. The first-time consolidation of a Ukrainian and a Turkish company also increased the scope of consolidation. With the effects of the deconsolidation of the LIPPERT-UNIPOL group, the result was a decline in external sales revenues of 0.4%. The Euro exchange rate resulted in reduced revenues (-1.9%). Taking all these effects into account, consolidated revenue rose by 3.2% to €1,365.3 million (1,323.3). o Free cash flow up 49%
o €1.50 dividend per preference share
The FUCHS PETROLUB Group had another highly successful trading year in 2007. Operating results, earnings before interest and tax (EBIT) and earnings before and after tax increased over 20%. At €195.2 million (161.2) EBIT has risen by €34 million or 21.1%. Finance costs for the Group were also down allowing the Group to post record earnings after tax of €120.3 million (97.2).
At €128.4 million free cash flow was nearly 50% above the previous year (86.4).
The Group's shareholders' equity at the balance sheet date amounted to €336.5 million (303.2). This increase was due to the excellent earnings. Shareholders' equity was reduced by the share buyback (€50.8 million).
Worldwide the FUCHS PETROLUB Group workforce numbered 3,787 employees (3,765) at December 31, 2007. This was a slight increase of 22 or 0.6% over the previous year. 2,739 (2,745) employees, or 72% of the workforce were employed abroad and 1,048 (1,020) in Germany.
The Executive Board and Supervisory Board will recommend to the Annual General Meeting on May 6, 2008 a dividend distribution of €1.50 per preference share and €1.44 per ordinary share. For the preference shares this equates to a 50% increase.
Business has continued to show a positive trend in the first two months of 2008. Sales revenues and earnings are both up. Although FUCHS PETROLUB anticipates a slowing of growth in the global economy, the turbulence in the financial markets should have limited impact on the real economy. The company intends to increase market share in the high quality lubricants sector in 2008 and expects to see an organic growth in revenues. FUCHS will aim for a further increase in earnings before interest and tax (EBIT) in 2008. The corporate tax reform in Germany and the continuation of the share buyback program will also help to boost the earnings per share. However, it will not be possible to sustain the high percentage EBIT growth rates seen in previous years. Overall, FUCHS PETROLUB can look forward to another satisfactory year in 2008.
Key figures for the FUCHS PETROLUB Group
(Values in € million) 2007 2006 Sales revenues(1) 1,365.3 1,323.3 Europe 934.1 874.7 North and South America 208.3 235.0 Asia-Pacific, Africa 253.4 237.2 Consolidation -30.6 -23.6 Earnings before interest and tax (EBIT) 195.2 161.2 Earnings after tax 120.3 97.2 Dividend (in €) - per preference share 1.50(2) 1.00 - per ordinary share 1,44(2) 0.94
cross cash flow 147.8 116.8 Capital expenditure(3) 24.4 18.1 Employees (at December 31) 3,787 3,765
(1)By company locoation cross cash flow 147.8 116.8 Capital expenditure(3) 24.4 18.1 Employees (at December 31) 3,787 3,765
(2) Proposal to the Annual General Meeting
(3) In property, plant and equipment and intangible assets
Mannheim, March 28, 2008
FUCHS PETROLUB AG
Public Relations
Friesenheimer Str. 17
68169 Mannheim
Phone: ++49 (0) 621 3802 – 105
The press release can also be found on the Internet at http://www.fuchs-oil.com
Link to the Annual Report: http://www.fuchs-oil.com/annual_report07.html
Important note
This press release contains statements about future development 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 to 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.
28.03.2008 Financial News transmitted by DGAP
Language: English
Issuer: 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
Listed: Regulierter Markt in Frankfurt (Prime Standard), Stuttgart; Freiverkehr in Berlin, Düsseldorf, Hamburg, München
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