Fuchs Petrolub AG: Record earnings once again in the anniversary year 2006 - Substantial increase in dividends planned
Fuchs Petrolub AG / Final Results
Release of a Corporate-announcement, transmitted by DGAP - a company of EquityStory AG.
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PRESS RELEASE
FUCHS: Record earnings once again in the anniversary year 2006 Substantial increase in dividends planned
FUCHS PETROLUB AG globally operating in the lubricants business achieved a strong increase in sales revenues, net profit and free cash flow in the past financial year.
The dividend to be recommended to the annual general meeting will be clearly increased.
o Sales revenues increased by 11 %
o Net profit increased by 31 %
o Free cash flow increased by 67 %
o Dividend of €1.00 per preference share
Internal growth of the strongly increased Group sales revenues reached 12.2 %. This was due to the extensive increase in base oil prices, which started in 2005 and continued in 2006. With its strategy of specialization and focus the FUCHS PETROLUB Group met this challenge with price increases and improvements to the product mix. The sale of the companies in Bangladesh and the LIPPERT-UNIPOL Group caused negative external growth of 1.2 %. On balance, currency translation effects did not affect the development of sales revenues.
Good global economic conditions and the Group's strategy of specialization were the success factors to evade the impact of highly volatile raw material markets as far as possible. The strong increase in sales revenues and the ongoing disciplined cost management contributed to a disproportionate increase of operating profit by 31.9 % to €157.5 million (119.4).
Earnings before interest and taxes (EBIT) reached €161.2 million (128.8) corresponding to an increase of 25.2 %. Taking into account the income tax expenses of €52.2 million (38.9) the Group achieved a net profit of €97.2 million (74.2).
At the end of the year the Group's shareholders’ equity totaled €303.2 million (232.6). The Group increased the equity ratio to €44.5 % (33.6). Free cash flow increased by 67 % to €86.4 million (51.7). Thereby net debts could be reduced by €73 million to €58.3 million.
As of December 31, 2006 the Group employed 3,765 people (4,137) worldwide. The total number of employees has thus declined in comparison with the previous year by 372 people or 9.0 %. The reduction in the number of employees is due to the sale of the LIPPERT-UNIPOL Group and FUCHS LUBRICANTS (BANGLADESH).
The Executive Board and the Supervisory Board recommend to the annual general meeting taking place on May 2, 2007 a dividend of €1.00 per preference share and €0.94 per ordinary share for the financial year 2006. Therefore the amount of dividends to be paid would increase by 44 % compared to the previous year.
The Group continued its growth in sales revenues in the first two months of 2007. FUCHS expects an increase in sales revenues for 2007, which, however, will not reach the high price-induced growth rates of the previous years. In the financial year 2006 the Group's earnings before interest and taxes (EBIT) once again reached a record level. The FUCHS PETROLUB Group plans to build on this EBIT without continuing the high growth rates achieved in the previous years. Therefore, FUCHS expects a positive business development for the future too.
Key data of the FUCHS PETROLUB Group
(Amounts in € million) 2006 2005 Sales revenues 1) 1,323.3 1,192.2 Europe 874.7 781.0 North and South America 235.0 224.2 Asia-Pacific, Africa 237.2 207.6 Consolidation -23.6 -20.6 Earnings before interest and taxes (EBIT) 161.2 128.8 Net profit 97.2 74.2 Dividend (in €) - per preference share 1.00 2) 0.70 3) - per ordinary 0.94 2) 0.64 3) Gross cash flow 116.8 100.8 Capital expenditure 4) 18.1 28.8 Employees (as of December 31) 3,765 4,137
1 By companies' headquarters
2 Recommendation to the annual general meeting
3 Incl. anniversary bonus of €0.10 per share and excluding bonus shares 4 In property, plant and equipment and intangible assets
Mannheim, March 23, 2007
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 http://www.fuchs-oil.com
Link to the Annual Report:
http://www.fuchs-oil.de/fileadmin/fuchs_upload/pdf_addons/GB_2006/PETROLUB _GB_2006.pdf
Important note
This press release 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.
DGAP 23.03.2007
Language: English
Issuer: Fuchs Petrolub AG
Friesenheimer Str. 17
68169 Mannheim Deutschland
Phone: +49 (0)621 / 3802-0
Fax: +49 (0)621 / 3802-190
E-mail: contact-de.fpoc@fuchs-oil.de
www: www.fuchs-oil.de
ISIN: DE0005790430, DE0005790406
WKN: 579043, 579040
Indices:
Listed: Amtlicher Markt in Frankfurt (Prime Standard), Stuttgart; Freiverkehr in Berlin-Bremen, Düsseldorf, Hamburg, München
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