FUCHS PETROLUB AG in Mannheim, Germany, the globally operating lubricant manufacturer, has come successfully through one of the most difficult years in the sector's history, during which the prices for crude oil tripled at times. Sales in 2000 increased by 8.2 % to reach approximately 902 million € (834). Consolidated profits, too, were up on the previous year's figure of 17.1 million €. Although the first two months of 2001 continued to be characterized by very high raw material prices, the Group expects another rise in profits.

According to the provisional figures, the increase in sales came from internal growth (5.3 %) and the beneficial effects of foreign currency translation (5,9 %). By contrast, the change-over of an affiliate mainly operating as a fuel trader from pro rata to equity consolidation caused a 3.0 % reduction in sales.

The Group's revenues continued to come predominantly from the German specialty companies and the USA business, while the result was also boosted substantially by contributions from Asia, Latin America, and from Central and Eastern Europe. In the other nations of Western Europe, and at the German FUCHS DEA SCHMIERSTOFFE, conversely, the pressure of competition made it exceptionally difficult to pass on a reasonable proportion of the material price hikes to the customers.

On 31 December 2000, the Group was employing 3,883 people (3,889), of whom 945 were working in Germany, and 2,938 abroad.

Sales during the first two months of 2001 totaled 150 million €, 7.5 % up on the preceding year's figure. Growth was particularly vigorous in Europe and Asia, while in North America, due to the slump in the automotive and steel sectors, it was disproportionately low. The rise in sales will continue into March. Quarterly profits at the normal level are anticipated.

Whether 2001 will prove to be an easier year for the sector, and for the global economy as a whole, remains to be seen. Following last year's massive hikes in raw material prices, this year may see the world's economy slow down as a result of the slump in North America's automotive and steel industries, and decelerating growth in the business cycle. The rise in material prices, by contrast, has already peaked, so that from this side no further pressure on gross margins need be expected.

For 2001 as a whole, on the basis of the present-day exchange rates, the Group anticipates sales of about 965 million €, and another increase in consolidated net income.