- Double-digit growth in sales revenues
- EBIT reaches EUR 200 million
- Target of exceeding the record EBIT of 2010 remains in place
The first nine months of 2011 at a glance
| (Amounts in EUR million) | 1-9/2011 | 1-9/2010 |
|---|---|---|
| Sales revenues (1) | 1,255 | 1,084 |
| Europe | 770 | 651 |
| Asia-Pacific, Africa | 312 | 281 |
| North and South America | 211 | 184 |
| Consolidation | -38 | -32 |
| Earnings before interest and tax (EBIT) | 200 | 191 |
| Profit after tax | 137 | 133 |
| Earnings per share in EUR | ||
| Ordinary share | 1.91 | 1.85 |
| Preference share | 1.93 | 1.87 |
| Gross cash flow | 149 | 127 |
| Capital expenditures (2) | 24 | 22 |
| Employees (as at September 30) | 3,710 | 3,538 |
(1) By company location
(2) In property, plant and equipment and intangible assets
Performance
With sales of EUR 1,255 million (1,084), the FUCHS PETROLUB Group generated 16% or EUR 171 million more in the first nine months of 2011 than in the same period of the previous year. The key drivers of this growth were significant volume increases in connection with sales price increases as a result of higher raw material costs. Both of these factors together led to organic growth of EUR 196 million or 18%. The growth rates were high in all three global regions.
Over the same period, the Group increased its gross profit by EUR 36.3 million or 8.5% to EUR 463.6 million (427.3). Especially due to increased volumes and the ongoing growth initiative other personnel and overhead costs increased by 9.3% or EUR 22.4 million at the same time.
Incorporating income from participations, earnings before interest and tax increased by 4.9% or EUR 9.4 million to EUR 200.2 million (190.8). After income taxes of EUR 60.3 million (54.4), the Group recorded profit after tax of EUR 136.9 million (132.7).
Earnings per (split) share were EUR 1.91 (1.85) per ordinary share and EUR 1.93 (1.87) per preference share.
Capital expenditures
The investments in property, plant and equipment and intangible assets of the FUCHS PETROLUB Group were EUR 23.8 million (21.6) in the first nine months of 2011. The focus was the new R&D center in Mannheim.
Employees
As at September 30, 2011, the global workforce of the FUCHS PETROLUB Group consisted of 3,710 employees. On an adjusted basis, this corresponds to 137 more persons than at the start of the year. The new appointments, which were made in all regions, are an integral part of the growth initiative.
Outlook
The FUCHS PETROLUB Group anticipates year-on-year increases in both sales revenues and earnings for the financial year 2011 and continues to strive to exceed the record EBIT of EUR 250 million achieved in 2010. However, in light of the economic slowdown it will be difficult to reach the high level recorded in the fourth quarter of the previous year (EUR 59 million) in the fourth quarter of 2011.
The Group is continuing its growth initiative with investments in research and development, key facilities, specialties and emerging markets. Despite these investments in the future and the increased business volume, a pleasing level of free cash flow will be generated in 2011.
From December 1, 2011, the FUCHS PETROLUB Group intends to transfer company pensions with a value of approximately EUR 50 million for around 430 employees in Germany to external pension providers. Making the switch from internally financed pension provisions to a solution operated by an external pension provider will reduce the balance sheet total. Aside from this, biometric risks such as increasing life expectancy, death or occupational disability, and investment risks will also be passed on to the external pension provider.
Mannheim, November 3, 2011
FUCHS PETROLUB AG
Public Relations
Friesenheimer Str. 17
68169 Mannheim
Germany
Tel.: ++49 (0) 621 3802-1124
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 September 30, 2011:
www.fuchs-oil.com/qr_ninemonths.html
Press photos:
www.fuchs-oil.com/pressphotos.html
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.