In the first quarter of 2008, the company, which operates in the global lubricant market, achieved profits after tax of €32.1 million. This represents growth of 19% over the first quarter of 2007 and follows the successful developments of recent years.
Earnings per ordinary and preference share increased by 23% to €1.27 (1.03) and €1.28 (1.04) respectively. The 4% higher increase is due to the share buyback program.
In the first quarter of 2008, the FUCHS PETROLUB Group continued its course of growth. Sales revenues grew organically by 7.3% or €24.6 million. However, currency effects reduced growth by 4.2%. Overall, sales revenues of €350.7 million (339.2) were achieved, which represents a total growth of 3.4%, including external growth of 0.3%.
The gross profit of €128.3 million (123.2) increased by 4.1% or €5.1 million, whereas the earnings before interest and tax (EBIT) increased by 10.9% or €4.8 million to €48.7 million (43.9). An improved financial result and a reduced rate of taxation also contributed to the increase in the net result. This produced a profit after tax of €32.1 million (27.0).
As of March 31, 2008, the workforce of the FUCHS PETROLUB Group consisted of
3,829 employees. During the course of the first quarter of 2008, the number of employees increased by 1.1% due to the filling of vacant positions and to business-related expansion of employment.
For the year 2008 as a whole, FUCHS intends to achieve an organic expansion of sales revenues but expects currency effects to be appreciable. In terms of earnings before interest and tax (EBIT), the Group aims to further enhance the record profits achieved in 2007. The corporate taxation reform and the share buyback program should likewise benefit earnings per share. In terms of the EBIT result, FUCHS does not, however, expect to sustain the high growth rates seen in previous years.
Shareholder representatives and shareholders welcomed the appreciation of shareholder value elucidated by Stefan Fuchs, the Chairman of the Executive Board, in his Annual General Meeting speech, as well as the shareholder-friendly dividend policy demonstrated since flotation on the stock market in 1985. During this period, the preference share dividend increased by almost 9% year on year. For 2007, the dividend distributed has increased by 45% compared with the previous year. Compared with 2005, the total dividend distributed has more than doubled.
With 43% of total capital represented, and 78% of ordinary voting share capital represented, the administration's proposals were adopted unanimously, or with an overwhelming majority.
The proposals included payment of a 50% higher dividend of €1.50 per preference share and €1.44 per ordinary share, extension of the share buyback program and election of the new Supervisory Board member Dr. Erhard Schipporeit, a former member of the Executive Board of E.ON AG. After 20 years of Supervisory Board membership, Prof. (em) Dr. Dr. h. c. mult. Otto H. Jacobs, retired from his post after the Annual General Meeting on May 6, 2008.
In the run-up to the Annual General Meeting, Lars-Eric Reinert was elected as employee representative to the Supervisory Board of FUCHS PETROLUB AG. Reinert succeeds Heinz Thoma, who has been a member of this board since the flotation of FUCHS on the stock exchange in 1985 and retired for age reasons from the Supervisory Board on May 1, 2008.
The first quarter of 2008 at a glance
Group
| (in € million) | 1-3/2008 | 1-3/2007 |
|---|---|---|
| Sales revenues (1) | 350.7 | 339.2 |
| Europe | 244.0 | 234.1 |
| North and South America | 48.3 | 54.7 |
| Asia-Pacific-Africa | 66.3 | 59.7 |
| Consolidation | -7.9 | -9.3 |
| Earnings before interest and tax (EBIT) | 48.7 | 43.9 |
| Net profit for the first quarter | 32.1 | 27.0 |
| Cash flow from operating activities | 15.1 | 11.6 |
| Capital expenditures (2) | 8.0 | 4.7 |
| Employees (as of March 31) | 3,829 | 3,798 |
(1) By company location
(2) In property, plant and equipment and intangible assets
Mannheim, May 6, 2008
FUCHS PETROLUB AG
Public Relations
Friesenheimer Str. 17
68169 Mannheim
Tel.: ++49 (0) 621 3802 - 105
This press release is also available online at www.fuchs-oil.de.
Link to Quarterly Report:
www.fuchs-oil.de/fileadmin/fuchs_upload/pdf_addons/QR2008/QB26e.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.