In front of almost 800 shareholders and numerous guests, who in the AGM of the globally operating lubricants producer FUCHS PETROLUB AG in Mannheim represented a share capital of 47 %, the Executive Board Chairman, Dr. Manfred Fuchs, gave an upbeat review of the 2002 business year. Despite deep-seated difficulties in certain countries and parts of the world, plus a weak or declining business cycle, the group in 2002 achieved the best result in its history, with sales of € 1,065 mn and a net income of € 24.1 mn. This corporate success continued through the first quarter of 2003, with consolidated profits up by 33 % at € 6.1 mn.
Sales in the first four months of 2003 totaled € 352.3 mn (360.1) and were thus, due to currency translation factors, 2.2. % down on the preceding year's figure. This reflects the steep rise of the euro against the US dollar and other currencies. With internal growth continuing strong at 4.5 %, together with modest external growth of 1.3 %, the negative currency translation effect was - 8.0 %.
Dr. Fuchs, whose review of the past year was once again broadcast live over the internet, made it clear that the company's future rests on solid foundations, which give him confidence for the rest of the 2003 business year, despite the external uncertainties involved. Subject to developments on the foreign exchange markets, sales are expected to reach about € 1.1 bn for 2003. Profitability will remain good, though the benchmark for the ongoing quarter is a particularly challenging one, since from April to June 2002 the quarterly result was € 7.4 mn, the best figure ever in the group's history.
The Executive Board Chairman sees the key to the group's continuing success in its balanced business portfolio, specialized far beyond the sectoral average, and the product range, the most comprehensive among the world's major lubricant vendors. "This is what distinguishes us from our competitors, what assures our success even under less-than-easy macro-economic and market conditions, and where we benefit from our independence in terms of customer-responsiveness, flexibility, efficacy and niche capabilities", emphasized Dr. Fuchs. It remains vital, he said, to concentrate on the high-value segments of the market, and not to operate in the category of predominantly price-determined low-value products.
Shareholder representatives of the German Investor Protection Organization and the Small Shareholders Protection Association, and indeed numerous private investors, expressed satisfaction with the company's performance, and praised the results presented by the Executive Board as "good work in a period of macro-economic difficulties".
In the presence of 71.4 % of the voting-right share capital, the management's proposals were approved by overwhelming majorities. They included the payment of a dividend increased by € 0.50 to € 4.37 per ordinary share and € 4.88 per preference share.
The shareholders also agreed to a capital increase from corporate funds and a re-allocation of the nominal capital ("share split"). Also, various changes to the company's statutes, particularly regarding the German Corporate Governance Code, facilitating the exercise of voting rights, and the use of modern communication technology, were approved by an overwhelming majority.
Mannheim, 5 June 2003
FUCHS PETROLUB AG
Public Relations
Friesenheimer Str. 17
D-68169 Mannheim
Tel.: +49 (0) 621 3802-104
The press release is also available on the internet under www.fuchs-oil.de.