- Demand remains strong on a broad basis
- Significant increases in the price of raw materials
- Profit after tax reaches EUR 47.1 million
| (Values in EUR million) | 1-3/2011 | 1-3/2010 |
|---|---|---|
| Sales revenues (1) | 409.0 | 330.4 |
| Europe | 249.8 | 203.6 |
| Asia-Pacific, Africa | 102.1 | 83.7 |
| North and South America | 68.9 | 53.4 |
| Consolidation | -11.8 | -10.3 |
| Earnings before interest and tax (EBIT) | 67.6 | 58.7 |
| Profit after tax for the first quarter | 47.1 | 40.6 |
| Earnings per share in EUR | ||
| Ordinary share | 1.97 | 1.70 |
| Preference share | 1.99 | 1.72 |
| Gross cash flow | 51.4 | 42.7 |
| Capital expenditure (2) | 6.5 | 6.9 |
| Employees (as at March 31) | 3,622 | 3,496 |
(1) By company location
(2) In property, plant and equipment and intangible assets
Performance
In a positive economic environment, the FUCHS PETROLUB Group increased both sales and sales revenues in the first quarter of 2011 over the same period of the previous year and over the quarters following that. Total revenues of EUR 409.0 million (330.4) were recorded, which represents an increase of 23.8% over the same quarter of the previous year. These are the highest sales revenues the company has ever recorded in a single quarter.
The Group was able to continue the dynamic development of previous quarters with organic growth in excess of 20% in each of the three regions, together totaling 21.8%.
The increase in sales revenues in the first quarter was demand-based and influenced by significant increases in the costs of raw materials since mid-2010. A disproportionate increase in the cost of sales of 28.8% left the gross margin at 37.7%, which is below its level in the same quarter of the previous year of 40.1%.
Due to inflation and volume factors, the expenses for selling, distribution and administration, as well as for research and development, increased by 14.2% in total. In addition, the acquisition of the CASSIDA business with lubricants for food grade applications, as well as higher freight, commission and in particular personnel costs, had an impact. After inclusion of the other operating result and income from participations, the Group recorded earnings before interest and tax (EBIT) of EUR 67.6 million (58.7). Earnings after taxes increased by 16.0% to EUR 47.1 million (40.6). Earnings per share were EUR 1.97 (1.70) per ordinary share and EUR 1.99 (1.72) per preference share.
Capital expenditure and investments in companies
The FUCHS PETROLUB Group made investments of EUR 6.5 million (6.9) in property, plant and equipment and intangible assets in the first quarter of 2011. The focus was the new R&D center in Mannheim.
Employees
The Group employed 3,622 people worldwide as at March 31, 2011. The number of employees at the start of the year (3,584) and in the same period of the previous year (3,496) include those persons employed at companies consolidated pro rata in the Middle East (11 and 12 respectively). On an adjusted basis, the FUCHS PETROLUB Group therefore employed 49 persons more than at the start of the year.
Outlook
Despite the natural and nuclear disaster in Japan and the political upheaval in North Africa and the Middle East, the global economy was relatively robust in the first quarter of 2011. The dynamics originating from the emerging markets also led to further economic recovery in the developed countries.
However, the worldwide economic recovery is being marred by a significant resurgence in raw material prices, some of which are associated with supply bottlenecks. The significant increase in the price of raw materials will keep pressure on the gross margin and costs will remain above the previous year's level due to the continuing growth initiative.
FUCHS is striving to surpass the previous year's record EBIT of EUR 250.1 million, although the earnings of the first quarter should not simply be extrapolated to the entire year.
Mannheim, May 4, 2011
FUCHS PETROLUB AG
Public Relations
Friesenheimer Str. 17
68169 Mannheim
Germany
Tel.: ++49 (0)621 3802-1124
The information below can be accessed at the following web addresses:
Press release:
www.fuchs-oil.com
Interim report for the first quarter of 2011:
www.fuchs-oil.com/qr_firstquarter.html
Press photos:
www.fuchs-oil.com/pressphotos.html
Important note
This press release contains statements about future developments that are based on assumptions and estimates by the management of FUCHS PETROLUB AG. Even if the management is of the opinion that these assumptions and estimates are accurate, future actual developments and future actual results may differ significantly from these assumptions and estimates due to a variety of factors. These factors can include changes in the overall economic climate, changes to exchange rates and interest rates, and changes in the lubricants industry. FUCHS PETROLUB AG provides no guarantee that future developments and the results actually achieved in the future will agree with the assumptions and estimates set out in this press release and assumes no liability for such.