Growth initiative bears fruit, significant currency effects
DGAP-News: FUCHS PETROLUB SE / Key word(s): Half Year Results
01.08.2014 / 07:00
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Growth initiative bears fruit, significant currency effects
- Good organic growth of just under 5% substantially eroded by currency effects; sales revenues rise by 1% to EUR 919 million - EBIT of EUR 151 million just under 2% lower than in previous year, currency adjusted an EBIT increase of 2%
- Earnings per share at previous year's level
- EBIT for 2014 expected to be repeated at previous year's level
The first six months of 2014 at a glance
(Amounts in EUR million) 1. HY 2014 1. HY 2013 Dev. % Sales revenues (1) 919.3 910.3 1.0 Europe 561.0 547.2 2.5 Asia-Pacific, Africa 246.1 243.9 0.9 North and South America 153.3 155.0 -1.1 Consolidation -41.1 -35.8 - Earnings before interest and tax (EBIT) 151.2 153.8 -1.7 Earnings after tax 105.4 107.6 -2.0 Earnings per share in EUR
Ordinary share (2) 0.75 0.75 - Preference share (2) 0.76 0.76 - Gross cash flow 110.9 107.6 3.1 Investments in long-term assets 15.1 33.6 -55.1 Employees as at June 30 3,992 3,826 4.3
(1) By company locationOrdinary share (2) 0.75 0.75 - Preference share (2) 0.76 0.76 - Gross cash flow 110.9 107.6 3.1 Investments in long-term assets 15.1 33.6 -55.1 Employees as at June 30 3,992 3,826 4.3
(2) Previous year's figures have been adjusted for reasons of comparability
Performance
The FUCHS PETROLUB Group actively pursued its growth strategy in the first six months of 2014 and achieved organic growth of almost 5%, thus growing faster than the market. However, a large proportion of the growth in sales achieved was eroded by currency translation effects. Group sales revenues increased by EUR 9 million or 1% to EUR 919 million (910).
At EUR 151 million (154), earnings before interest and tax (EBIT) fell EUR 3 million or just under 2% short of the previous year. Adjusted by negative currency effects, an increase of 2% was achieved. Earnings after tax declined by 2% to EUR 105 million (108).
Due to the share buyback program, earnings per share remained at the previous year's level of EUR 0.75 (0.75) per ordinary share and EUR 0.76 (0.76) per preference share.
Capital expenditures
In the period under review, EUR 15 million (34) was invested in property, plant and equipment. These investments were largely made in Germany, China, and the US. Further substantial investments are to be expected in subsequent quarters for the projects in Germany and the US.
In addition, we continued to pursue our specialization strategy in the second quarter with two targeted acquisitions in England, South Africa and Australia.
Employees
As at June 30, 2014, the FUCHS PETROLUB Group employed 3,992 people worldwide (3,826). Compared with the 3,888 employees recorded at the end of the previous year, this represents an increase of 104 people. The new staff were recruited across all divisions, primarily at companies in Germany, England and France, as well as in South Africa, Australia and China.
Outlook
The growth initiative is set to continue. FUCHS remains committed to its forecast of organic growth in the low single-digit range for the financial year 2014 and for the second half of the year. As regards the EBIT and earnings after tax, the Group has become more cautious, due to the severe loss in value of a number of currencies important to FUCHS and expects last year's very good results to be repeated in 2014. FUCHS continues to expect a cash flow for 2014 in the three-digit million range.
Mannheim, August 1, 2014
FUCHS PETROLUB SE
Public Relations
Friesenheimer Str. 17
68169 Mannheim Germany
Tel: +49 (0)621 3802-1104
E-mail: tina.vogel@fuchs-oil.de
The information below can be accessed at the following web addresses:
Press release:
www.fuchs-oil.com
Interim report as at June 30, 2014:
http://www.fuchs-oil.com/ir_sixmonths.html
Press photos:
http://www.fuchs-oil.com/pressphotos1.html
Important note
This press release contains statements about future developments that are based on assumptions and estimates by the management of FUCHS PETROLUB SE. 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 SE provides no guarantee that future developments and the results actually achieved in the future will match the assumptions and estimates set out in this press release and assumes no liability for such.
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Language: English Company: FUCHS PETROLUB SE Friesenheimer Str. 17 68169 Mannheim Germany Phone: +49 (0)621 / 3802-0 Fax: +49 (0)621 / 3802-7190 E-mail: ir@fuchs-oil.de Internet: www.fuchs-oil.de ISIN: DE0005790430, DE0005790406 WKN: 579043, 579040 Indices: MDAX Listed: Regulierter Markt in Frankfurt (Prime Standard), Stuttgart; Freiverkehr in Berlin, Düsseldorf, Hamburg, München
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