The globally operating lubricants producer FUCHS PETROLUB AG in Mannheim, Germany, performed successfully during the first quarter of 2002, with both sales and profits developing well. At the same time, the group has changed over to International Accounting Standards (IAS), thus enhancing the transparency of its reporting work and ensuring improved comparability in the context of international competition. Sales rose by 13.1 % to reach € 265.7 m (234.9), operating profits by 23.4 % to € 19.5 m (15.8), and the net income for the quarter, at € 4.6 m (3.4), was up by 35.3 %. Goodwill was for the first time amortized in full pro rata temporis against profits in accordance with International Accounting Standards (IAS). The quarterly earnings per share increased to € 3.0 (2.4) before and € 1.8 (1.3) after goodwill amortization.
Due to consolidation effects, the rise in sales was mainly attributable to external growth, which contributed 10.8 %, assisted by 1.5 % from internal growth and 0.8 % from currency translation effects. With € +24.6 m, the Europe Region achieved the highest sales growth in absolute terms; a likewise significant relative sales increase of 13.9 % is reported by the Asia/Pacific Rim and Africa region.
The group's earnings showed a highly gratifying uptrend during the first quarter of 2002. The reasons behind the substantial growth in the operating result are to be found in higher sales, an improvement in gross margin, and a reduced cost burden. The operating margin increased to 7.3 % of sales (6.7).
Earnings before interest and taxes (EBIT), at € 16.4 m (13.9), are € 2.5 m or 18 % up on the preceding year's equivalent figure.
A regional breakdown of earnings shows substantial growth in profits particularly in the Asia/Pacific Rim and Africa Region. But Europe, too, has reported gratifying improvements in earnings, applying to Western and Central Europe alike.
Capital expenditure on tangible and intangible assets totaled € 4.4 m (6.1) in the year's first quarter. The principal items involved were the new plant under construction in Kaiserslautern and plant equipment in the USA.
On 31 March 2002, the FUCHS Group was employing 4,145 people (3,952). Due to consolidation effects, the total number of employees has thus increased by 193 (+4.9 %) from the previous year's equivalent date. 1,147 staff were employed in Germany, and 2,998 abroad.
The outlook for the FUCHS PETROLUB Group during the remainder of the 2002 business year is favorable. Though the performance of the economies in Western Europe, the USA and Asia/Pacific Rim remains to be seen, as do developments in exchange rates and the raw material markets dependent on the oil price, the group will continue to benefit from its high-quality business portfolio, and from its technology and specialization leadership, together with its global presence. Consolidated sales will for the first time exceed € 1 bn, and produce higher profits than in 2001.
Mannheim, 31 May 2002
FUCHS PETROLUB AG
Public Relations
Friesenheimer Str. 17
D-68169 Mannheim
Tel.: +49(0)621 38 02-104
The press release is also available on the internet under www.fuchs-oil.de.