FUCHS PETROLUB AG in Mannheim, Germany, the globally operating lubricant producer, bucked the general trend in its chosen sector during a successful first quarter of 2001, characterized by solid sales and profits. With revenues up by 6.7 % to Euro234.9 m (220.1), quarterly profits after taxes totaled Euro4.9 m (4.9), and operating profits, at Euro14.8 m, and earnings before interest and taxes (EBIT), at Euro14.7 m, being slightly up on the preceding year's equivalent figures. Compared with the fourth quarter of 2000, in particular, the figures for the first three months of 2001 constitute a substantial improvement, notwithstanding the industrial slowdown in North America and a decline in Germany's industrial production during March. Capital investment during this year's first quarter came to Euro6.1 m (6.9). The workforce has risen to 3,952 people (3,836).
Sales were boosted particularly by internal growth (5.6 %) and to a lesser extent by external growth (1.0 %). With various exchange rates shifting in opposite directions, the resultant net effect of currency translation was negligible (+0.1 %).
Of the regions reporting, Asia/Pacific Rim, Africa, with 8.0 %, achieved the most striking growth rate. The very dynamic development in Central and Eastern Europe contributed significantly to upping sales by Euro9.8 m or 6.6 % in Europe as a whole. Internal growth in the entire Western European region, including Germany, came to 3.9 %. The companies in the Americas region saw their sales grow by a total of 5.0 %. In North America, a stronger dollar exchange rate was a significant factor in helping sales there to achieve the above rise, notwithstanding the weakening industrial output. In Latin America, the FUCHS company in Brazil performed particularly well, with internal growth of 13.8 %.
Due to the increase of 10.2 % in spending on materials, gross earnings, with a rise of Euro 2 m or 2.5 %, did not increase as much as sales (+6.7 %). A likewise underproportional increase in divisional costs, of Euro1.8 m (+2,7 %), produced a netted-out rise of Euro0.2 m in the operating result. In particular, reduced administration costs, down by 1.9 % (-Euro0.3 m), made a contribution here, while selling and distribution costs rose by 4.7 % (+Euro2.1 m). With investment income slightly down (-Euro0.1 m), earnings before interest and taxes (EBIT) were Euro0.1 m up on the preceding year's figure.
A regional breakdown reveals that it was primarily the group's companies in Central and Eastern Europe which significantly raised their performance, but in Asia, too, some companies reported notably improved results. In America, the benefits arising from dollar conversion largely cushioned the dampening effect of declining industrial activity. In Western Europe, an initial improvement in business performance was especially manifest in the United Kingdom.
Investments in tangible and intangible assets during the first quarter of 2001 totaled Euro6.1 m (6.9). Around 70 % of this figure, or Euro4.2 m, was invested abroad, and of this more than 70 % in turn went to the high-growth regions of America and Asia/Pacific Rim (Euro3.0 m).
On 31 March 2001, the FUCHS Group was employing 3,952 people (3,836), 116 more (+3.0 %) than on last year's equivalent date.
Macro-economic trends for 2001 are characterized by a definite slowdown in worldwide growth. The problems in North America's automotive and steel sectors, the continuing weakness of the Japanese business cycle, and the concomitant effects on South-East Asian economies and other parts of the world, are manifest. On the basis of present-day exchange rates, the group anticipates sales of Euro965 m (902), with continuingly good profit figures. The results of 2001's first quarter validate the company's forecast.
FUCHS PETROLUB AG
Public Relations
Friesenheimer Str. 17
D-68169 Mannheim
Tel.: +49(0)6 21 3802-104