Fuchs Petrolub AG / Key word(s): Half Year Results
03.08.2011 / 07:00

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FUCHS continues strong sales revenue growth in the first half of 2011
- Double-digit growth in sales revenues maintained - Substantial rise in raw material prices
- EBIT increases to EUR 133.9 million
- Outlook for the financial year confirmed

The first six months of 2011 at a glance
(1) By company location
(2) In property, plant and equipment and intangible assets
Performance
In an economic environment that remained positive, the FUCHS PETROLUB Group considerably increased its sales revenues in the first half of 2011 by 18.2% or EUR 127.8 million to EUR 828.5 million in comparison with the previous year (700.7). Due to a base effect, the rate of increase slowed down in the second quarter. The passing on of the increased raw material costs was the main factor behind the sales growth in the second quarter. The Group recorded organic growth of 19.8% or EUR 138.9 million in the first half of the year, with all three regions showing similar growth rates.

In the light of the sharp rise in raw material costs, the growth in sales revenues was accompanied by a disproportionately high increase in cost of sales (material and production costs). As a result of higher volumes, growth-oriented increase in staff numbers and higher wage and salary costs worldwide, expenses for selling, distribution, administration and research and development also increased, but at a significantly lower rate.
After taking into account other operating income and expenses as well as income from participations, earnings before interest and tax (EBIT) increased in total by 8.1% or EUR 10.0 million to EUR 133.9 million (123.9).

After a liquidity-based improvement to the financial result (EUR -1.9 million following EUR -3.0 million in the previous year) and after income taxes of EUR 40.4 million (34.4), the Group recorded profit after tax of EUR 91.6 million (86.5).

Capital expenditure and investments in companies
The FUCHS PETROLUB Group made investments of EUR 14.5 million (14.7) in property, plant and equipment and intangible assets in the first half of 2011. The focus was the new R&D center in Mannheim.
Employees
The Group employed 3,652 employees worldwide as at June 30, 2011. On an adjusted basis, the Group therefore employed 79 persons more than at the start of the year. The new appointments, which were made in all regions, are an integral part of the Group's growth initiative.
Outlook
Significantly higher raw material costs, the steps taken by various countries to cool down their overheated markets, as well as the national debt crisis and the risks for banks and other sectors of the economy have caused growth to slow down and represent appreciable risks for the economic development in the second half of 2011.

FUCHS PETROLUB expects robust sales revenues and solid earnings for the second half of the year, although the high raw material costs will continue to put pressure on the gross margin and the ongoing growth initiative will lead to personnel and other direct costs above the previous year.
The FUCHS PETROLUB Group anticipates year on year increases in sales revenues and earnings for the financial year 2011 and continues to strive to exceed the record EBIT of EUR 250.1 million achieved in the previous year. To what extent the EBIT of the first half of the year can be repeated in the second half of the year remains to be seen. The dynamics of sales revenue development will play an important role here, as will the development of raw material costs.

Mannheim, August 3, 2011

FUCHS PETROLUB AG
Public Relations
Friesenheimer Str. 17
68169 Mannheim
Germany
Tel.: ++49 (0) 621 3802-1124 

The information below can be accessed at the following web addresses:
Press release:
http://www.fuchs-oil.com

Interim report for the first six months and second quarter of 2011: http://www.fuchs-oil.com/qr_sixmonths.html

Press photos:
http://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.


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Language: English Company: Fuchs Petrolub AG Friesenheimer Str. 17 68169 Mannheim Germany Phone: +49 (0)621 / 3802-0 Fax: +49 (0)621 / 3802-7190 E-mail: ir@fuchs-oil.de Internet: www.fuchs-oil.de ISIN: DE0005790406, DE0005790430 WKN: 579040, 579043 Listed: Regulierter Markt in Frankfurt (Prime Standard), Stuttgart; Freiverkehr in Berlin, Düsseldorf, Hamburg, München  
 
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