- Sales revenues back to the 2008 level
- Profitability of the first half of 2010 virtually maintained
- Profit after tax increased to EUR 132.7 million
The first nine months of 2010 at a glance
| (Values in EUR million) | 1-9/2010 | 1-9/2009 |
|---|---|---|
| Sales revenues (1) | 1,083.5 | 873.2 |
| Europe | 650.8 | 553.7 |
| Asia-Pacific, Africa | 281.0 | 211.1 |
| North and South America | 183.6 | 129.9 |
| Consolidation | - 31.9 | - 21.5 |
| Earnings before interest and tax (EBIT) | 190.8 | 122.7 |
| Profit after tax | 132.7 | 81.8 |
| Earnings per share in EUR | ||
| Ordinary share | 1.94 | 1.61 |
| Preference share | 1.95 | 1.63 |
| Gross cash flow | 127.1 | 89.7 |
| Capital expenditure (2) | 21.6 | 22.1 |
| Employees (as at September 30) | 3,538 | 3,536 |
(1) By company location
(2) In property, plant and equipment and intangible assets
Performance
The FUCHS PETROLUB Group continued its strong growth in sales revenues in the third quarter of 2010. At EUR 1,083.5 million, revenues enjoyed a 24.1% increase for the first nine months of the year over the same period of the previous year (873.2). Consequently, the then highest nine-month figure of 2008 (1,083.5) was equaled again. The strong growth, which lifted Group sales revenues back up to their pre-crisis level, was driven in particular by the regions Asia-Pacific, Africa and North and South America.
Together with the pronounced growth in sales revenues, the FUCHS PETROLUB Group also significantly improved its earnings position. It was therefore possible to continue the strategy of profitable growth.
At EUR 427.3 million, gross profit was 27.5% or EUR 92.2 million up on the same period from last year (335.1). Selling and distribution, administration and research & development expenses increased by only 12.1% or EUR 26.1 million to a level of EUR 241.0 million (214.9), which means they increased at a lower rate than sales revenues. After taking into account other operating income and expenses, as well as investment income, the Group recorded earnings before interest and tax (EBIT) of EUR 190.8 million (122.7). Profit after taxes in the first nine months of 2010 increased by 62.2% to EUR 132.7 million (81.8).
Capital expenditure and investments in companies
In the first nine months of 2010, the FUCHS PETROLUB Group made investments in property, plant and equipment and intangible assets of EUR 21.6 million (22.1). The key investment focuses here were the purchase of property in South Africa and the construction of a new facility in India, as well as construction of a new R&D center and a new sales center in Mannheim. Staff moved into the sales center in the third quarter, and the facility in India will be up and running in December of this year.
Employees
As at September 30, 2010, the global workforce of the FUCHS PETROLUB Group consisted of 3,538 employees, which is 50 more than at the start of the year (3,488). The new appointments were especially made at the companies in the regions of Asia-Pacific and South America, which have been enjoying healthy growth.
Outlook
The Group expects to see a sound business development in the fourth quarter of 2010. However, the downward trend in the gross margin shows that the increases in raw material prices are also having an effect.
For the full year, the Group is aiming to generate earnings before interest and tax (EBIT) of around EUR 240 million with sales revenues of approximately EUR 1.4 billion. FUCHS therefore expects to achieve the highest EBIT in the Group's history in 2010. In light of the sound earnings position, the Group will generate considerable free cash flow. This in turn will allow strategically important investments to be financed internally. Investments in research and development, as well as in growth markets will continue as scheduled.
Mannheim, November 3, 2010
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
Quarterly report for the first nine months of the year and for the third quarter:
www.fuchs-oil.de/qr_ninemonths.html
Press photos:
www.fuchs-oil.de/photogallery0.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.