In a market environment characterized by a sluggish economy worldwide and declining demand for lubricants, FUCHS PETROLUB AG in Mannheim, Germany, a globally operating producer of lubricants, succeeded in upping its sales by 4.2 % to reach € 940 m and its operating profits by 9.7 % to € 61 m in 2001. Due to exceptional items and an increased financing outlay, the group's net income for the year, at € 16.2 m, did not repeat the all-time best result of 2000 (18.5 m). Capital expenditures on tangible and intangible assets were € 28.7 m, down from the preceding year's figure of 32.5. The worldwide workforce showed a slight shrinkage, at 3,871 on 31 December 2001. An unchanged cash dividend of € 3.87 per ordinary share and € 4.38 per preference share will be proposed to the Annual General Meeting. For the ongoing year, the group anticipates sales in excess of € 1 bn and rising profits.
With the exception of North America, all regions contributed to the internal growth of € 33.8 m or 3.7 %. The biggest rise, of 13 %, came from the Asia-Pacific Rim and Africa regions, though Europe still accounted for the highest volume of sales, with a turnover of € 560.3 m (59.6 % of consolidated sales) and internal growth of 4.7 %. The external growth of € 12.2 m or 1.4 % is attributable to acquisitions in the USA and Europe. Currency translation effects reduced the sales figures by € 8.0 m or 0.9 %, with exchange rates hitting turnover particularly hard in Asia-Pacific Rim and Africa.
The lubricants business accounted for almost 95 % of sales, more than in the previous year, due primarily to a 12.5 % increase in turnover with automotive lubricants, principally in the Europe, Asia-Pacific Rim and Africa regions. The growth rate for industrial lubricants was considerably lower, at 1.7 %, reflecting the widespread economic downturn experienced during 2001.
By streamlining and rationalizing the group's operations, the selling, administration and R&D costs were significantly reduced as a proportion of sales, reflecting the integrative and streamlining successes achieved at FUCHS EUROPE. Operating profits were thus up by € 5.4 m or 9.7 %, to reach € 61.0 m (55.6), rising more steeply than actual sales. Earnings came principally from business in the USA and Europe, though the contribution from Asia is increasing steadily.
Exceptional items, at € -6,9 m net, were hit by restructuring costs, write-downs and valuation adjustments to receivables as a result of weakening industrial output. Including the investment income of € 1.0 m, earnings before interest and taxes (EBIT) were slightly down on the preceding year's figure at € 55.0 m (56.9). The net interest charge was up by € 3.1 m, partly caused by an increased financing volume. The taxation ratio, at 48.9 % (49.6), however, was once again lower, totaling € 15.5 m (18.2). The group's net income for the year thus came to € 16.2 m (18.5).
Capital expenditures on tangible and intangible assets (excluding goodwill acquired) decreased to € 28.7 m (32.5) in the year under review. Major investment projects included plant expansions in Indonesia, China and the USA. Within FUCHS EUROPE, capital expenditures were principally channeled into further optimizing the production through coordinated specialization in dedicated manufacturing locations.
Worldwide, the group was on 31 December 2001 employing 3,871 people (3,952), a slight decrease of 2.0 %.
FUCHS PETROLUB AG's business year closed with a net income of € 11.1 m (4.6), which together with profits brought forward of € 7.6 m (12.8) produces a net profit for the year of € 18.7 m (17.5). For the allocation of unappropriated income, the executive and supervisory boards are proposing to shareholders an unchanged cash dividend for the past business year of € 3.87 per ordinary share and € 4.38 per preference share. No tax credit falls due for domestic shareholders in the past business year.
Consolidated sales during the first quarter of 2002 came to € 264.3 m, 13.1 % up on the preceding year's figure. Above-average contributions to growth came from Germany, Central and Eastern Europe, Asia-Pacific Rim, plus North and Latin America.
For 2002 as a whole, given the present-day exchange rates and without allowing for further acquisitions, sales are expected in excess of € 1 bn, with rising profits. Capital expenditures on tangible assets in 2002 have been budgeted at € 25 m, less than the preceding year's figure. Now that FUCHS EUROPE SCHMIERSTOFFE has been fully consolidated since 1 January 2002, and the companies in Mexico and Russia have meanwhile been completely integrated into the group, the number of employees worldwide is currently 4,131.
Mannheim, 26 April 2002
FUCHS PETROLUB AG
Public Relations
Friesenheimer Str. 17
D-68169 Mannheim
Tel.: +49 621 3802-104