Around 1,000 shareholders and numerous guests, representing a total share capital of 45.79% of the international lubricants company FUCHS PETROLUB AG, attended the AGM. Celebrating the 20th anniversary of the company's listing on the stock exchange, Stefan Fuchs (Chairman of the Executive Board) reported positive results for the year 2004 with record profits being reached for the third year in a row, amounting this year to €40.1 million. After an excellent start in the first quarter of 2005, April also produced pleasing results, with the Group achieving sales revenues of €371.7 million for the first four months of the year, an increase of 3.4% on the figures of the previous year. The Chairman repeated his earlier statement that the Group would once again be aiming for an increase in net Group income for 2005.
Against the background of current discussions on Germany as a business location, Stefan Fuchs underlined the significance of the German site for the company. "FUCHS PETROLUB achieved 28% of its revenues for 2004 in Germany. A quarter of our global personnel work in Germany. FUCHS has invested over €50 million in its headquarters in Mannheim over the last 10 years, with production volumes almost doubling over the last 3 years. Production has not been outsourced to Eastern Europe - rather, European volumes have been transferred here to Mannheim. We have thus strengthened our position here and this will remain the case for the foreseeable future", declared Fuchs to the shareholders. This applies not only to the holding company based in Mannheim, but also to research and development within the company, with 50% of the global R&D expenditure, amounting to €21 million, being spent at the Mannheim site, and to production, Mannheim being by far the largest unit within the Group.
The Chairman placed particular emphasis on the statement that the Group had built up its world market leadership in vital strategic market niches still further in 2004. The excellent sector and customer mix, combined with an international presence, e.g. a significant existing presence in the growth markets in Asia, proved that the company met the challenges of globalization successfully. Fuchs went on to say that the Group was represented in all the crucial strategic markets by subsidiaries or with joint venture partners.
Shareholder representatives from the German Association of Private Investors (Deutsche Schutzvereinigung für Wertpapierbesitz) and the Association for the Protection of Capital Investors (Schutzgemeinschaft der Kapitalanleger) used their reports to praise the remarkable development of share prices and the excellent assessment the company was given by financial analysts.
With the presence of 71.27% of those shareholders entitled to vote, management proposals were passed unanimously or with overwhelming majorities. These proposals included the payment of dividends increased by €0.10 to €1.66 per ordinary share and €1.83 per preference share, as well as the split of capital stock in a ratio of 1:3.
Shareholders also agreed to the authorization for the issue of option and convertible bonds, as well as the creation of a conditional capital of 10% of capital stock and the corresponding alteration of company statutes.
The existing shareholder representatives, Prof. Dr. Jürgen Strube, Dr. Manfred Fuchs, Prof. Dr. Bernd Gottschalk and Prof. Dr. Dr. h.c. mult. Otto H. Jacobs, were appointed members of the Supervisory Board for another five years.
Mannheim, May 24, 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.