Active worldwide in the lubricants field, FUCHS PETROLUB AG in Mannheim was able to increase worldwide sales and thus continue internal growth by 3.2% in the first half of 2003 - despite the weak overall economy and resultant weak state of the market. External growth added another
1.0 % so that, adjusted for currency differences, there was a growth in sales of 4.2%. Translation effects, however, resulted in 3.7% lower sales figures of € 522.5 million (542.3). Half-year profit after goodwill amortization and taxes amounted to € 13.2 million (12.0). This is an increase of 10% on last year. Before goodwill amortization, half-year profit after tax was € 19.3 million (17.4) or € 2.6 (2.4) per share after the share split (1:3) implemented on 28 July 2003. Entire group sales for the year 2003 will amount to over € 1.0 billion. Earnings will continue to be healthy - a forecast that means the group will be measured against the peak result from 2002 of € 24.1 million.
Adjusted for currency differences, the group increased its sales by € 22.9 million or 4.2% in the first half of 2003. Internal growth was to € 17.4 million (3.2%) and external growth contributed € 5.5 million (1.0%). Ultimately however, translation effects amounting to € -42.7 million or -7.9% resulted in a 3.7% drop in turnover to € 522.5 million (542.3).
Sales at most of the European companies reached or exceeded first half 2002 levels, although sales figures were influenced in part by the disposal of low-profit activities and the falling exchange rate for sterling. Sales figures for the Americas region were also strongly influenced by exchange rate shifts, despite notable internal growth (+ 6%). Despite similar considerable currency effects, sales grew significantly further by 12.9% in the Asia-Pacific, Africa region in the first half of 2003.
Despite a drop in sales caused by translation effects, the FUCHS PETROLUB group was able to continue its progress in the second quarter of 2003, thanks to internal growth above the market average (+3.2 %), improvement in the group product mix and successful cost management. The group gross margin of36.9 % (36.8), just over the level of the previous year, is the result of internal growth, the shifting of sales to more high-grade products and reduced manufacturing costs. Due to currency factors, the gross result fell by 3.3% to € 192.9 million (199.5). Functional costs at -3.7% declined slightly more than gross profits. Therefore, the operating profit margin, with 8.1% of sales, is just over last year's level (8.0%),
Earnings before interest and taxes (EBIT) were influenced positively by capital gains from the disposal of smaller activities that do not form part of the core business, as well as by other operating expense items. EBIT amounted to € 36.1 million (36.3).
As in the first quarter of the current year, financing and tax expenses were down on the preceding year's figure in both absolute and relative terms. Therefore, net income has reached € 13.2 million, 10% up on last year's figure (12.0).
Group investments in tangible and intangible assets, with the exception of goodwill, came to € 8.0 million (12.2) in the first half of 2003. Focus points for capital expenditure were the Western European sites and factories in the USA.
On 30 June 2003, the FUCHS PETROLUB Group was employing 4,162 people (4,132). The number of employees thus increased by 30 people (+ 0,7 %) over the preceding year's equivalent date. 1,120 of these were employed in Germany and 3,042 abroad.
Group sales for the year 2003 will amount to over € 1.0 billion. Earnings will continue to be healthy - a forecast which will be measured against the group's 2002 peak result of € 24.1 million.
Mannheim, 15 August 2003
FUCHS PETROLUB AG
Public Relations
Friesenheimer Str. 17
68169 Mannheim
Tel.: +49 (0) 621 3802-104
This press release is also available over the Internet at www.fuchs-oil.de.