In the second quarter of the year, the international lubricants company FUCHS PETROLUB AG continued to build on the success of the previous quarter. Sales revenues rose by 4.9% to €575.7 million (548.9), while net profit for the first six months reached €31.1 million (23.2), an increase of 34.1% in relation to the comparable previous year's figure. Earnings per ordinary and preference share (after the share split) amounted to €1.28 and €1.31 respectively (comparable with €0.95 and €0.98 resp.), representing increases of 34.7% and 33.7%. The FUCHS PETROLUB Group expects a significant rise in net Group income for the year 2005.
Internal growth of €24.8 million or 4.5% was the result of mix improvements and increases in sales prices. The Americas were the most significant contributor, while growth in Europe and Asia-Pacific, Africa was more moderate as a result of the discontinuation of low-margin business. External growth of €6.8 million was mainly a reflection of the acquisition of the OVOLINE business in England at the start of 2005. Currency translation effects in the first half were negative, reducing Group sales revenues by €4.8 million.
The rise in net profits for the first six months was mainly due to the increase in operating profit, improvement of other operating income and lower financing expenditure. Not only were the increases in raw material prices offset by more efficient cost structures and an improved product mix, combined with increased sales prices, but the Group was also able to increase its operating profit by €6.1 million or 11.9% to €57.4 million (51.3).
Earnings before interest and taxes (EBIT) rose by €11.0 million or 23.9% to €57.1 million (comparable with 46.1), as restructuring costs proved less of a burden on other operating income than in the previous year.
Reductions in financial liabilities led to reduced financing expenditure and thus contributed to a 33.3% increase in earnings before taxes, rising to €49.2 million (comparable with 36.9). All in all, earnings after taxes reached a new high of €31.1 million (comparable with 23.2). When compared to the unadjusted total of €18.9 million for the first half of 2004, this demonstrates a rise of 64.4%.
Capital expenditure on property, plant and equipment and intangible assets in the first half of 2005 amounted to €11.8 million (9.3) or 2.0% of sales revenues. Around 60% of these investments were used for projects in Mannheim, Stoke-on-Trent in England and Chicago in the USA.
As of 30 June 2005, the FUCHS PETROLUB Group employed 4,154 people (4,240). The number of employees thus decreased by 86 (- 2.0 %) over the preceding year's equivalent date. A total of 1,093 (1,093) people were employed in Germany and 3,061 (3,147) abroad.
The current business year will continue to be marked by increasing raw material costs, countered by our strategy of specialization, increases in sales prices and disciplined cost management. Lower restructuring expenses, falling financing costs and the cessation of scheduled goodwill amortization should also have a positive effect. The company is also due to receive profits from property sales amounting to approximately €6 million in the third quarter of the year. All in all, FUCHS anticipates on a comparable basis a significant increase in net Group income for the year 2005.
Mannheim, 11 August 2005
FUCHS PETROLUB AG
Public Relations
Friesenheimer Str. 17
68169 Mannheim
Phone: (0621) 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.