- Increase in demand continues
- Profit after tax in the first quarter of 2010 increased to EUR 40.6 million
- Strong dynamics in the regions of Asia-Pacific, Africa and South America
| (Values in EUR million) | 1-3/2010 | 1-3/2009 |
|---|---|---|
| Sales revenues (1) | 330.4 | 278.5 |
| Europe | 203.6 | 177.9 |
Asia-Pacific, Africa | 83.7 | 61.2 |
| North and South America | 53.4 | 44.8 |
| Consolidation | -10.3 | -5.4 |
| Earnings before interest and tax (EBIT) | 58.7 | 26.5 |
| Net profit for the first quarter | 40.6 | 16.2 |
| Earnings per share in EUR | ||
| Ordinary share | 1.70 | 0.67 |
| Preference share | 1.72 | 0.69 |
| Gross cash flow | 42.7 | 20.1 |
| Capital expenditure (2) | 6.9 | 7.2 |
| Employees (as at March 31) | 3,496 | 3,730 |
(2) In property, plant and equipment and intangible assets.
Performance
At EUR 330.4 million, the sales revenues recorded by the FUCHS PETROLUB Group in the first quarter of 2010 once again exceeded the previous quarter's figures (304.9). The development observed in 2009, with sales revenues increasing consistently from quarter to quarter, therefore also continued into 2010. Compared to the same quarter of the previous year (278.5), which was particularly hard hit by the financial and economic crisis, this represents a 18.6 % increase.
It is encouraging to see that the regions of North and South America and Asia-Pacific, Africa managed to record even higher sales revenues than in the first quarter of 2008. In Europe, on the other hand, it has not yet been possible to reach the revenue levels achieved in 2008. This was mainly due to giving up a low margin toll processing business in Great Britain.
Furthermore the pleasing trend in earnings from the second half of 2009 continued into the beginning of 2010. The increase in sales revenues was accompanied by a disproportionately high growth in earnings.
Earnings before interest and taxes (EBIT) reached a level of EUR 58.7 million (26.5). It was also possible to more than double earnings after taxes to EUR 40.6 million (16.2) compared with the very weak first quarter of 2009.
All three regions significantly increased their segment earnings. Europe, which was hit hardest by the crisis, is enjoying the most pronounced recovery. Segment earnings increased to EUR 31.7 million (13.2). Earnings in the region Asia-Pacific, Africa also enjoyed good growth, reaching EUR 17.2 million (8.2). The North and South America region recorded segment earnings of EUR 11.7 million (6.2).
Capital expenditure and investments in companies
The FUCHS PETROLUB Group made investments of EUR 6.9 million (7.2) in property, plant and equipment and intangible assets in the first quarter of 2010. The key focus of investment was the new research and development and sales center in Mannheim, and the construction of a new facility in India.
Employees
As at March 31, 2010, the global workforce of the FUCHS PETROLUB Group consisted of 3,496 employees, which is eight 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
The macroeconomic situation in the last few months has improved throughout the world. However, the high national debt of some countries creates uncertainty for the further recovery of the real economy. The growing demand for industrial products and lubricants is accompanied by a corresponding increase in raw material prices. For several weeks, base oil, chemicals and other additive prices have consequently experienced considerable rises worldwide.
The FUCHS PETROLUB Group is planning for increased sales revenues and earnings compared to the previous year in all three regions of the Group. The Group is striving to exceed its highest EBIT recorded to date, which was EUR 195.2 million in the year 2007. However, the marked increases in sales revenues and earnings recorded in the first quarter of 2010 due to a base effect can not just be extrapolated to the rest of the year. In the following quarters increasing prices for raw materials will also make it difficult to repeat the above-average earnings before interest and tax (EBIT) recorded in the first quarter of 2010.
Investments in research and development as well as in growth markets are running as scheduled. Regardless of these investments, the Group will record a good level of free cash flow in comparison with recent years.
Mannheim, May 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:
www.fuchs-oil.com
Interim report for the first quarter of 2010:
www.fuchs-oil.de/qr_firstquarter.html
Press photos:
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.