- At EUR1,394 million, sales revenues are 2.1% above previous year
- Earnings EUR110.3 million
- Dividend set to be increased to EUR1.60 per preference share
FUCHS PETROLUB AG, with global operations in the lubricant business, recorded an increase in revenues of 2.1% to EUR1,393.7 million in the financial year 2008. However, due to the global economic collapse in the fourth quarter of 2008, it was not possible to achieve the previous year's level in terms of earnings before interest and taxes (EBIT). EBIT was EUR171.7 million (195.2), which represents a fall of 12%. Earnings after taxes were EUR110.3 million (120.3). Earnings per ordinary share were EUR4.43 (4.63) and per preference share EUR4.49 (4.69), both 4.3% below the previous year's level. All figures are still provisional.
Cash flow in the reporting year was shaped by high levels of inventory at year end due to increases in raw material prices and the severe drop in demand in the fourth quarter. Free cash flow after acquisitions and major investments was EUR7.5 million (128.4).
Subject to a corresponding resolution of the Supervisory Board on March 26, 2009, the Executive Board at FUCHS PETROLUB AG will propose a dividend of EUR1.60 (1.50) per preference share and EUR1.54 (1.44) per ordinary share to the Annual General Meeting to be held on May 6, 2009. This would mean the total dividend payout is at around the same level as the previous year. However, when the share buyback is taken into account, this represents an increase in dividend per share of 7%.
We anticipate that the unsatisfactory market conditions we are currently experiencing will also continue in 2009. The global drop in demand, and in particular its further development, are difficult to estimate. Yet, FUCHS enters this difficult time in robust condition and is confident of its proven business model. We will continue to work on potential weak areas, move on with our disciplined system of cost management and take every appropriate measure.
The complete financial statements for 2008 will be published on March 27, 2009 and presented within the scope of the balance sheet press conference.
Key figures of the Group
| 2008 (1) | 2007 | |
|---|---|---|
| Sales revenues | EUR1,393.7 million | EUR1,365.3 million |
| EBIT | EUR171.7 million | EUR195.2 million |
| Profit after tax | EUR110.3 million | EUR120.3 million |
| Earnings per share | ||
| Ordinary share | EUR4.43 | EUR4.63 |
| Preference share | EUR4.49 | EUR4.69 |
| Dividends | ||
| Ordinary share | EUR1.54 (2) | EUR1.44 |
| Preference share | EUR1.60 (2) | EUR1.50 |
| Free cash flow | EUR7.5 million | EUR128.4 million |
(2) Proposal of the Executive Board
Mannheim, February 27, 2009
FUCHS PETROLUB AG
Public Relations
Friesenheimer Str. 17
68169 Mannheim
Tel.: ++49 (0) 621 3802 – 105
This press release is also available on the Internet at www.fuchs-oil.com.
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.