Internal growth in sales revenues of 17.0 % was driven by price and mix. The significant increase in raw material costs in 2005 has continued into 2006. Positive currency translation effects contributed 4.1 % to the growth in sales revenues.
Earnings after taxes for the first quarter of €19.4 million were 48 % higher than the previous year's figure. The base effect, however, played a rather significant role as earnings in the first quarter of 2005 were weaker than the following quarters, due among other things to the timing of the Easter holidays. Administration, distribution and development costs increased less than gross earnings. In this regard the operating profits increased by €9.7 million to €35.3 million (25.6). Earnings before interest and taxes (EBIT) climbed to €33.6 million (24.8), giving a rate of increase of 35.5 %. All regions made a positive contribution to this progress.
In the first three months of 2006 the FUCHS PETROLUB Group made investments in property, plant and equipment and intangible assets of €5.3 million (5.8).
As of 31 March 2006 the FUCHS PETROLUB Group employed 4,037 people, 100 less than at the end of 2005 (4,137). The reduction in personnel was due to consolidation.
For the full year 2006, FUCHS is anticipating a growth in sales revenues determined by price and mix with the internal rate of growth of 17.0 % achieved in the first quarter being continuously reduced in the following quarters. The Group is aiming to achieve earnings before interest and taxes (EBIT) for 2006 which do not fall below the 2005 EBIT of €128.8 million. The previous year's profits were influenced positively by gains from the disposal of land amounting to €7.6 million.
Mannheim, 9 May 2006
FUCHS PETROLUB AG
Public Relations
Friesenheimer Str. 17
68169 Mannheim
Phone: (0621) 3802 - 105
The press release can also be found on the Internet at www.fuchs-oil.de.
Quarterly report:
www.fuchs-oil.de/fileadmin/fuchs_upload/pdf_addons/
English/QB_2006/QB_06_e.pdf
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.
The first quarter 2006 at a glance
Group
(Values € million) | 1-3/2006 | 1-3/2005 |
|---|---|---|
Sales revenues 1 | 332.7 | 275.0 |
Europe | 217.3 | 183.3 |
North and South America | 63.6 | 50.5 |
Asia-Pacific, Africa | 57.6 | 45.6 |
Consolidation | -5.8 | -4.4 |
Earnings before interest and taxes (EBIT) | 33.6 | 24.8 |
Net profit for the first quarter | 19.4 | 13.1 |
Gross cash flow | 24.2 | 17.6 |
Capital expenditure2 | 5.3 | 5.8 |
Employees (on March 31) | 4,037 | 4,145 |
2 In property, plant and equipment and intangible assets