FUCHS PETROLUB AG, the globally active lubricant supplier, increased its earnings after taxes and goodwill amortization for the first nine months of the year 2003 by 19.5% to €22.7 million (same period of 2002: €19.0 million). The cash flow actually increased by 69.8% to €42.1 million (€24.8 million). This strong performance was achieved against a background of falling demand for lubricants and ongoing high base-oil prices. Internal growth of 2.7% was more than offset by cur-rency-translation effects, however. The Group's sales revenues amounted to €785.5 million (€811.2 million) for the period, and will be more than €1.0 billion for the full year. Profitability will remain good and will exceed last year's excellent result of €24.1 million.
By means of internal and external growth, the Group succeeded in increasing its sales revenues for the first nine months of 2003 by €28.5 million, or +3.5%. However, the substantial appreciation of the euro resulted in a currency-translation effect of -€54.2 million, or -6.7%. Measured in euros, total sales revenues therefore decreased by €25.8 million, or 3.2%, to €785.5 million (€811.2 million).
Adjusted for currency-translation effects, the region of North and South America recorded growth of 5%. Measured in euros, revenues actually decreased by 13.3% to €145.3 million (€167.6 million). The Asia-Pacific and Africa region more than compensated for substantial currency effects (-10.5%) through internal (+19.0%) and external growth (+7.8%). In Europe, the termination of low-profit activities, the reduction in toll blending, and exchange-rate effects (-2.2%) led to a decrease in revenues of €21.5 million, or 4%.
An operating profit of €70.7 million (€69.3 million) and 9.0% of revenues (8.5%) was higher than in the same period of last year in both absolute and relative terms. Selling and administrative expenses in particular were reduced significantly - not least due to successful cost management.
Earnings before interest and taxes (EBIT) rose by 6.6% to €58.3 million (€54.7 million) and the EBIT margin rose to 7.4% (6.7%).
An improved financial result and a falling tax rate contributed to net profit before minority interest increasing by 19.5% to €22.7 million (€19.0 million).
In terms of the shares, which were split as of 28 July 2003 at a ratio of 1 to 3, earnings per share for the period amount to €3.04 (€2.54). Earnings per share before goodwill amortization amount to €4.61 (€4.14).
Investments in property, plant and equipment and intangible assets (excluding goodwill) totaled €12.3 million in the first nine months of this year (€20.2 million). The focus of capital expenditure was on the locations in Western Europe and the plants in the United States.
At 30 September 2003, 4,166 persons were employed by the FUCHS PETROLUB Group (4,109). Over the preceding year, the workforce therefore expanded by 57 persons (+1.4%). 1,114 persons were employed in Germany and 3,052 abroad.
The Group anticipates a slight economic recovery, which should intensify in 2004 and lead to a moderate rise in the global demand for lubricants. In the area of acquisitions, the potential offered by strategically important niches and regions is still being pursued in order to optimize our leading position in the field of special lubricants. The FUCHS PETROLUB Group expects to finalize such a project in the coming weeks. In this case we would take advantage of a limited volume of financing measures with the use of authorized capital.
The Group's sales revenues for full-year 2003 will exceed €1.0 billion. Profitability will remain good - a forecast that has to be seen against our record net profit of €24.1 million achieved in 2002.
Mannheim, November 14, 2003
FUCHS PETROLUB AG
Public Relations
Friesenheimer Str. 17
68169 Mannheim
Germany
Phone: +49 (0)621 3802 104
This press release is also available on the Internet at www.fuchs-oil.com.