In the first nine months of the current business year, the globally operating lubricants producer FUCHS PETROLUB AG in Mannheim continued to perform successfully. Sales were up by 14.2 % in the year's first nine months to reach € 811.2 million (710.6). The group's operating profit rose by 47.4 % to reach € 69.3 million (47.0), with net income in the year's first three quarters up by 153.3 % at € 19.0 million (7.5). In conformity with international accounting standards (IAS), acquisition goodwill was for the first time amortized in its full amount of € 11.4 million and deducted from the profit on a pro rata temporis basis. Before this goodwill amortization, the profits after taxes came to € 30.4 million (15.4). Earnings per share for the January-September period increased to € 12.4 (6.1) before and € 7.6 (2.8) after goodwill amortization.
Internal growth contributed 5.8 % or € 41.2 million to the increased sales. External growth came to 11.5 % or € 81.5 million. Shifts in exchange rates accounted for -3.1 % or € -22.1 million. The Europe Region achieved the biggest rise in sales (€ +90.6 million or 20.5 %), figures boosted substantially by takeover of the remaining 50 % holding in what is now FUCHS EUROPE SCHMIERSTOFFE in Mannheim at the beginning of 2002. In addition, despite adverse exchange rate factors, the Asia-Pacific and African subsidiaries also increased their sales significantly (€ +12.6 million or 12.8 %). Once again, the main contributors in this region were Australia and China.
Thanks to these increased sales, with gross earnings showing another overproportional improvement, and costs for R&D, selling and administration being kept to an underproportional rise, the operating profit rose from € 47.0 million to reach € 69.3 million (+47.4 %). The group thus achieved an operating profit margin amounting to 8.5 % (6.6) of sales. Earnings before interest and taxes (EBIT) showed a substantial increase to reach € 54.7 million (41.3). Contributions to the group's good earnings performance came from all the regions.
During the first nine months of 2002, € 20.2 million (20.9) were invested in the group's tangible and intangible assets, not including goodwill. The main items here were new plants in Kaiserslautern and in China, and the expansion of a lubricating grease factory in the USA.
The free cash flow thus reached a new record level, at € 24.8 million (- 13.8); it was improved substantially by the group's excellent performance, the initiatives taken to reduce net current assets, and the lower investment ratio.
On 30 September 2002, the FUCHS Group was employing 4,109 people (3,909). Due to consolidation factors, the number of employees rose by 200 (+5.1 %) compared to the previous year's equivalent date. 1,157 people were employed in Germany and 2,952 abroad.
Due to weak economies and structural reasons, worldwide demand for lubricants is recovering from the decline of 2001 less readily and more slowly than could be anticipated back at the beginning of 2002. In this less-than-easy business environment, the FUCHS PETROLUB Group will continue to rely on its inner strengths and its value-driven policies for corporate strategy, R&D and marketing. Sales for the year as a whole are expected to reach approximately € 1,060 million. Net income will show a very substantial rise on a like-for-like basis.
Mannheim, 29 November 2002
FUCHS PETROLUB AG
Public Relations
Friesenheimer Str. 17
D-68169 Mannheim
Tel.: +49 621 3802-104
The press release is also available on the internet under www.fuchs-oil.de verfügbar.