FUCHS PETROLUB AG in Mannheim, with international operations in the lubricant sector, has continued its positive business development in the first quarter of 2004. Internal growth amounted to €14.4 million or 5.5%. Due to exchange-rate effects, the nominal increase in sales was 1.3%, reaching sales figures of €266.9 million (263.4). Profits after taxes increased disproportionally by 50.8%. This also reflects the base effect of the weakest quarter of the previous year with a result of €6.1 million. Earnings per ordinary and preference share come to €1.11 and €1.15 respectively (0.79 and 0.83), with figures before scheduled goodwill amortization being €1.39 and €1.43 (1.17 and 1.21) . Earnings should remain high, even if the rate of increase for the first quarter does not continue in subsequent quarters.
The positive internal development of revenues was reduced by €-10.8 million or -4.1% as a result of currency translation effects. With consideration given to negligible external growth of €- 0.1 million (- 0.1%), total sales increased by €3.5 million or 1.3% to €266.9 million (263.4).
As in previous quarters, the pleasing internal growth achieved during the first quarter of 2004 was mainly based on the performance of our Asian and Australian subsidiaries (€+7.1 million), although the regions of Europe and North / South America also achieved considerable organic sales growth.
With a profit of €9.2 million after taxes, the group has carried on the positive performance development from the second half of 2003 to the first quarter of 2004. Earnings before interest and taxes (EBIT) reached €20.3 million (17.3). The EBIT margin rose to 7.6 % (6.6 %). The optimisation of cost structures and value-orientated growth more than compensated for the higher costs of raw materials. The reduction in financing expenditure, falling by 21.7% to €4.7 million (6.0), also contributed to the improved financial result.
Group investments in tangible and intangible assets amounted to €4.0 million (3.7). As in the previous year, the main focus point was the Mannheim site.
As of 31 March 2004, the FUCHS PETROLUB group employed 4,305 people (4,202). The number of employees thus increased by 103 people (+ 2.5%) over the preceding year's equivalent date. 1,101 persons were employed in Germany and 3,204 abroad.
Sales development is also likely to be under the internal growth rate in the second quarter, due to currency-translation impact. Nominal sales figures for the entire year 2004 will depend on the further development of the euro - dollar exchange rate. The company expects a double-digit percentage increase in net group income for the entire year 2004 in comparison to the previous year (30.9), although it is unlikely that the base-related 50.8% increase rate achieved in the first quarter of 2004 will be repeated in following quarters.
Mannheim, 14 May 2004
FUCHS PETROLUB AG
Public Relations
Friesenheimer Str. 17
68169 Mannheim
Phone: ++49 (0)621 3802 - 105
This press release can also be found on the Internet at www.fuchs-oil.de.
Important Note
This Press Information 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.