FUCHS PETROLUB AG, which operates in the lubricant industry, could exceed the previous year's quarterly result significantly and continue their success of the 2005 half-year due to a 9% increase in sales revenues for the quarter. In the first nine months of 2005, the sales revenues increased by 6.2% to €882.6 million (830.8). The profit for the first nine months rose by 54% to €56.0 million (previous year adjusted for scheduled goodwill amortization) to reach a new high even after deducting the non-recurring earnings from disposals of €6.3 million. Earnings per ordinary and preference share amounted to €2.31 and €2.35 respectively. The FUCHS PETROLUB Group anticipates a significant increase in net Group income for the year 2005.
Along with an improvement in the product mix, the driving force behind the internal growth of 5.4% or €44.6 million was primarily the increase in sales prices. The North and South America region made a particularly strong contribution to this development, whereas in Europe and in Asia-Pacific, Africa, the increase in sales revenues was more moderate after giving up low-margin business. External growth of €9.4 (+ 1.1 %) is mainly a reflection of the acquisition of the OVOLINE business in England at the start of 2005. The currency translation effect at €-2.2 million or -0.3% was limited.
The basis for the pleasing profit development was the significant increase in sales revenues (+6.2%) and successful cost management. Therefore, the operational profit rose by 15.2% to €90.9 million (78.9). Finally, it was possible to realize earnings of €6.3 million in the third quarter of 2005 from the sale of land not required for operational purposes and additionally there were no serious costs due to restructuring expenses to be absorbed in contrast with the previous year.
The cessation of scheduled goodwill amortization also had a positive effect on profit. Earnings before interest and taxes (EBIT) at €97.4 million thus constituted 11.0% of sales revenues. This result was rounded off by the declining financing costs of €11.6 million (13.7). After deducting taxes, profits were €56.0 million, 54% higher than the figure for the previous year of €36.4 adjusted for scheduled goodwill amortization.
In the first nine months of 2005, capital expenditure on property, plant and equipment and intangible assets amounted to €17.6 million (14.5). Investments in financial assets amounted to €1.4 million. More than half of these investments were made at the sites in Mannheim (Germany), Stoke-on-Trent (U.K.) and Chicago (U.S.A.).
As of 30 September 2005, the FUCHS PETROLUB Group employed 4,158 people (4,185). The number of employees thus decreased by 27 (-0.6%) over the preceding year's equivalent date. Of the total number, 1,104 people (1,086) were employed in Germany and 3,054 (3,099) were employed abroad.
Raw material costs have again risen strongly in the third and beginning of the fourth quarters. It is unlikely that these increases will abate. The FUCHS PETROLUB Group continues to counter this with their specialization strategy, consistent increase in sales prices and ongoing disciplined cost management. Lower restructuring expenses, non-recurring earnings from the sale of land totaling €6.3 million, declining financing costs and the cessation of scheduled goodwill amortization are having a positive effect on profit development. Therefore, FUCHS will again show a significant increase in net Group income for the year 2005.
Mannheim, November 15, 2005
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 www.fuchs-oil.de.
Important note
This Press Information 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.