Group sales revenues enjoyed organic (internal) growth of 9.2% or €94.3 million in the first nine months of 2008. The increase was driven both by volumes and prices. Conversion to the Group currency of the euro, which is significantly stronger as a currency than was the case in the previous year, led to a drop in sales revenues of €46.7 million or 4.5%. Taking into account external growth of €4.6 million or 0.4%, this left a net increase in sales revenues of 5.1% or €52.2 million.
There was a severe material price increase in the middle of the second quarter 2008, in particular in terms of base oil prices. As a consequence of this, gross profit increased by +1.4% or +€5.2 million to a level of €388.6 million (383.4). As such, gross profit saw less of an increase than sales revenues. Personnel and material costs in marketing and sales, administration and R&D saw an inflation-based increase of €6.0 million. As a result of this, at €144.5 million, earnings before interest and tax (EBIT) was slightly below the previous year's level of €145.1 million.
Despite the share buyback and increased business scope, at –€6.4 million the financial result of the first nine months of 2008 was better than in the previous year (-6.9). The significantly reduced rate of taxation also has a positive effect on profit after tax, which was increased by 7.9% to €94.1 million (87.2).
Investments in property, plant and equipment, intangible and financial assets rose as expected in the first nine months of 2008 to €31.6 million (15.3). The driving factors behind the increase in capital expenditure are the construction of the new facility in China, construction of the new FUCHS LUBRITECH Group facility in Kaiserslautern and the purchase of real estate in India.
The current economic framework conditions indicate a significant worldwide economic downturn. In addition, the heightened severity of the global financial market crisis has significantly increased uncertainty regarding further development of the real economy. Making any kind of forecast is therefore extremely risky.
In terms of sales revenues, the FUCHS PETROLUB Group expects to see significant organic growth for 2008 as a whole, despite the fact that an appreciable drop in sales is to be expected among several customer groups in the fourth quarter. The Group is also targeting an EBIT level slightly below the previous year's figure. However, as a result of a reduced rate of taxation and a reduction in the number of shares, earnings per share should be marginally above the previous year's level. FUCHS PETROLUB intends to keep the dividends at least at the same level as the previous year.
The first nine months of 2008 at a glance
Group
| (in € million) | 1-9/2008 | 1-9/2007 |
|---|---|---|
| Sales revenues 1 | 1,083.5 | 1,031.3 |
| Europe | 743.7 | 704.2 |
| North and South America | 154.0 | 160.5 |
| Asia-Pacific, Africa | 212.4 | 189.3 |
| Consolidation | -26.6 | -22.7 |
| Earnings before interest and tax (EBIT) | 144.5 | 145.1 |
| Profit after tax for the first nine months | 94.1 | 87.2 |
| Earnings per share in € Ordinary share Preference share | 3.76 3.81 |
|
| Gross cash flow | 103.8 | 100.4 |
| Capital expenditures2 | 31.6 | 15.3 |
| Employees (as at September 30) | 3,886 | 3,820 |
2 In property, plant and equipment, intangible assets and financial assets
Mannheim, November 6, 2008
FUCHS PETROLUB AG
Public Relations
Friesenheimer Str. 17
68169 Mannheim
Tel.: ++49 (0) 621 3802 – 105
This press release is also available on the internet at www.fuchs-oil.com.
Link to the quarterly report:
www.fuchs-oil.de/fileadmin/fuchs_upload/pdf_addons/QR2008/QB48e.pdf
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.