Against a less-than-easy macro-economic background, the globally active lubricant producer FUCHS PETROLUB AG in Mannheim, Germany, continued to operate successfully in the third quarter of 2001. Nine-month consolidated sales rose by 5.6 % over the preceding year's equivalent figure, to reach € 710.6 m (672.7). Operating profits and earnings before interest and tax (EBIT), at € 45.0 m and € 44.3 m respectively, were almost fully up to the previous year's level, the group's best year ever (€ 45.3 m and € 45.0 m respectively). The nine-month net income of € 12.5 m (14.9) was down on the preceding year's figure by 16.1 %, due to increased exceptional items and financing cost. This produces, after goodwill amortization of € 0.8 (0.7) per share, nine-month earnings per share of € 4.9 (5.8). The cash flow from current operating activities was significantly increased during the year's first nine months, to € 24.6 m (8.0). Capital expenditures in the first nine months of the year totaled € 20.9 m (20.8). The workforce on September 30, 2001 had risen to 3,917 people (3,856).
4.4 % of the rise in sales is accounted for by internal growth, complemented by 1.9 % external growth, while a minus of 0.7 % is entailed by currency translation. While in Germany the cumulative rise in sales at the end of the year's third quarter was a mere 2.3 %, our companies in Central and Eastern Europe, particularly, achieved notable increases of + 25 %. The increases in sales generated by the West European companies (+ 5.3 %) were in line with the average for the group. Of the Asian companies, the Chinese affiliates again upped their sales by 60 %. Other companies in the Asia-Pacific Rim region were unable to repeat the preceding year's sales. Declining exchange rates, too, in the region as a whole reduced 14.5 % higher local sales by a 7 % translation effect. The economic downturn in the USA, already observable in mid-year, meant that sales growth there, at 5.6 %, was solely attributable to acquisitions and currency translation.At € 255.4 m, gross profits were € 7.7 m or 3.1 % up on 2000's equivalent figures. This almost compensated for the increase in selling, administration and R&D costs, of 4.0 % or € 8.0 m, so that the operating result, at € 45.0 m, was only 0.7 % or € - 0.3 m down on the preceding year's level. Although other operating profits were hit by the costs of closing down a sales company, and by lost receivables reflecting a downturn in the business cycle, earnings before interest and tax (EBIT), at € 44.3 m (45.0) is practically unchanged from the preceding year's figure. An increased financing volume, attributable not least to acquisitions in the second half of the year 2000 and the beginning of 2001, plus the rise in our average financing interest rate, meant a € 2.2 m burden to our net financial result. The reduced tax expense (€ - 0.5 m) could not entirely offset this effect, so that the nine-month after-tax profits came to € 12.5 m.
On September 30, 2001, the group was employing 3,917 people (3,856). The workforce was thus 61 persons larger, or 1.6 % up on last year's equivalent level. 935 of these worked in Germany, and the other 2,982 abroad.
The almost worldwide economic uncertainties render it particularly difficult at present to make business and profit forecasts. But consolidated sales in October 2001, at € 5,4 m (81.8), were significantly up on September's disappointing business volume of € 76.0 m (80.2). This gives the group confidence that it will finish the full year 2001 with an overall record better than the average for the lubricant sector and many other industries as well.
Mannheim, November 30, 2001
FUCHS PETROLUB AG
Public Relations
Friesenheimer Str. 17
D-68169 Mannheim
Tel.: +49(0)621/3802-104