FUCHS achieves record sales revenues and earnings in the financial year 2015
DGAP-News: FUCHS PETROLUB SE / Key word(s): Final Results
2016-03-22 / 07:00
The issuer is solely responsible for the content of this announcement.
FUCHS achieves record sales revenues and earnings in the financial year 2015
- Sales revenues: +11% to over EUR 2 billion (acquisitions +6%, currency +5%)
- Earnings (EBIT): +9% to EUR 342 million
- Proposed dividend: +7% to EUR 0.82 per preference share
The financial year 2015 at a glance
Sales revenues and earnings
The lubricant producer FUCHS PETROLUB SE achieved profitable growth in the financial year 2015 and generated record sales revenues and earnings. Group sales revenues exceeded the EUR 2 billion mark for the first time and are EUR 213 million or 11% higher than in the previous year at EUR 2,079 million (1,866). The growth is driven in particular by acquisitions (+6%) due to the purchase of Pentosin and Statoil Fuel & Retail Lubricants and is reinforced by positive currency translation effects (+5%). The organic sales growth was 0.3%.
At EUR 342 million (313), the Group not only recorded its best ever earnings before interest and tax (EBIT) in the financial year 2015, but at EUR 236 million (220) also the highest earnings after tax in the company's history. Earnings per ordinary and preference share rose to EUR 1.69 (1.57) and EUR 1.70 (1.58) respectively.
It was possible to finance the acquisitions entirely from free cash flow. Free cash flow was EUR 62 million (188).
Segment sales revenues and earnings
FUCHS PETROLUB recorded growth in all three global regions. Europe grew by 10% largely as a result of acquisitions and showed the strongest organic growth.The companies in this region contributed 57% of Group sales revenues. Growth recorded by the other regions was primarily due to currency translation effects as a result of the weak euro. Asia-Pacific, Africa recorded growth of 13% and North and South America grew by 12%.
At EUR 162 million, the EBIT for Europe remained at the previous year's level. The newly acquired companies impacted the EBIT through integration costs of EUR 6 million in the reporting year. Asia-Pacific, Africa increased its EBIT by 16% to EUR 122 million. Alongside positive exchange rates, China in particular contributed to this growth. North and South America generated an EBIT of EUR 65 million. The increase of EUR 13 million is due to currency effects.
Dividends
The Executive Board and Supervisory Board will propose a dividend of EUR 0.82 per preference share and EUR 0.81 per ordinary share for the financial year 2015 to the Annual General Meeting scheduled for May 4, 2016. This represents an increase of around 7%.
Capital expenditures
A total of EUR 50 million (53) were invested during the reporting period, primarily at locations in Germany, the US and Australia. The focus of capital expenditure was on expanding and modernizing existing facilities.
In Germany, investments were in particular made in a new test field, tank storage facilities, laboratories, as well as the roll-out of SAP software at a subsidiary. In the USA, the modernization of the Harvey site near Chicago was continued and construction of a specialty grease factory commenced. In Australia, the purchase of land in Newcastle means that construction of the new facility can now go ahead.
Employees
FUCHS PETROLUB employed 4,823 employees (4,112) as at December 31, 2015. The total workforce therefore increased by 711 persons or 17% year-on-year, of which 649 are attributable to acquisitions in Germany (145), Scandinavia, Central and Eastern Europe (478) and Brazil (26).
The number of employees in Asia-Pacific, Africa increased by two, while Europe added 663 (26%) new employees. In North and South America, the number of employees increased by 46 (9%) compared to December 31, 2014.
Outlook
FUCHS PETROLUB anticipates further increases to both sales revenues and earnings for the financial year 2016. The Group expects sales revenues to grow in the range of 7% to 11% before currency effects. Acquisitions made in 2015 will make a key contribution to this. The Group anticipates an EBIT growth of between 3% and 7%. Free cash flow before acquisitions of EUR 170 to 200 million is expected due to the increased investment activities in 2016.
Mannheim, March 22, 2016
FUCHS PETROLUB SE
Public Relations
Friesenheimer Str. 17
68169 Mannheim
Tel. +49 (0)621 3802-1104
tina.vogel@fuchs-oil.de
www.fuchs.com/group
The following information can be accessed online:
Annual report 2015: www.fuchs.com/group/financial-reports Press photos: http://www.fuchs.com/group/photogallery
Important note
This press release contains statements about future developments that are based on assumptions and estimates by the management of FUCHS PETROLUB SE. 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, for example, include changes in the overall economic climate, changes in procurement prices, changes to exchange rates and interest rates, and changes within the lubricants industry. FUCHS PETROLUB SE provides no guarantee that future developments and the results actually achieved in the future will match the assumptions and estimates set out in this press release and assumes no liability for such.
2016-03-22 Dissemination of a Corporate News, transmitted by DGAP - a service of EQS Group AG.
The issuer is solely responsible for the content of this announcement.
The DGAP Distribution Services include Regulatory Announcements, Financial/Corporate News and Press Releases.
Media archive at www.dgap-medientreff.de and www.dgap.de
Language: English Company: FUCHS PETROLUB SE Friesenheimer Str. 17 68169 Mannheim Germany Phone: +49 (0)621 / 3802-0 Fax: +49 (0)621 / 3802-7190 E-mail: ir@fuchs-oil.de Internet: www.fuchs-oil.de ISIN: DE0005790430, DE0005790406 WKN: 579043, 579040 Indices: MDAX Listed: Regulated Market in Frankfurt (Prime Standard), Stuttgart; Regulated Unofficial Market in Berlin, Dusseldorf, Hamburg, Munich; Terminbörse EUREX
End of News DGAP News Service
2016-03-22 / 07:00
The issuer is solely responsible for the content of this announcement.
FUCHS achieves record sales revenues and earnings in the financial year 2015
- Sales revenues: +11% to over EUR 2 billion (acquisitions +6%, currency +5%)
- Earnings (EBIT): +9% to EUR 342 million
- Proposed dividend: +7% to EUR 0.82 per preference share
The financial year 2015 at a glance
in EUR million 2015 2014 Dev. % Sales revenues (1) 2,079.1 1,865.9 11.4 Europe 1,227.0 1,112.9 10.3 Asia-Pacific, Africa 582.9 516.5 12.9 North and South America 352.8 316.0 11.6 Consolidation -83.6 -79.5 Earnings before interest and tax (EBIT) 342.2 313.0 9.3 Earnings after tax 236.2 219.9 7.4 Capital expenditures 49.7 52.6 -5.5 Free cash flow before acquisitions 232.0 209.5 10.7 Earnings per share in EUR
Ordinary share 1.69 1.57 7.6 Preference share 1.70 1.58 7.6 Dividend proposal/dividends in EUR
Ordinary share 0.81 0.76 6.6 Preference share 0.82 0.77 6.5 Employees as at December 31 4,823 4,112 17.3
(1) By company locationOrdinary share 1.69 1.57 7.6 Preference share 1.70 1.58 7.6 Dividend proposal/dividends in EUR
Ordinary share 0.81 0.76 6.6 Preference share 0.82 0.77 6.5 Employees as at December 31 4,823 4,112 17.3
Sales revenues and earnings
The lubricant producer FUCHS PETROLUB SE achieved profitable growth in the financial year 2015 and generated record sales revenues and earnings. Group sales revenues exceeded the EUR 2 billion mark for the first time and are EUR 213 million or 11% higher than in the previous year at EUR 2,079 million (1,866). The growth is driven in particular by acquisitions (+6%) due to the purchase of Pentosin and Statoil Fuel & Retail Lubricants and is reinforced by positive currency translation effects (+5%). The organic sales growth was 0.3%.
At EUR 342 million (313), the Group not only recorded its best ever earnings before interest and tax (EBIT) in the financial year 2015, but at EUR 236 million (220) also the highest earnings after tax in the company's history. Earnings per ordinary and preference share rose to EUR 1.69 (1.57) and EUR 1.70 (1.58) respectively.
It was possible to finance the acquisitions entirely from free cash flow. Free cash flow was EUR 62 million (188).
Segment sales revenues and earnings
FUCHS PETROLUB recorded growth in all three global regions. Europe grew by 10% largely as a result of acquisitions and showed the strongest organic growth.The companies in this region contributed 57% of Group sales revenues. Growth recorded by the other regions was primarily due to currency translation effects as a result of the weak euro. Asia-Pacific, Africa recorded growth of 13% and North and South America grew by 12%.
At EUR 162 million, the EBIT for Europe remained at the previous year's level. The newly acquired companies impacted the EBIT through integration costs of EUR 6 million in the reporting year. Asia-Pacific, Africa increased its EBIT by 16% to EUR 122 million. Alongside positive exchange rates, China in particular contributed to this growth. North and South America generated an EBIT of EUR 65 million. The increase of EUR 13 million is due to currency effects.
Dividends
The Executive Board and Supervisory Board will propose a dividend of EUR 0.82 per preference share and EUR 0.81 per ordinary share for the financial year 2015 to the Annual General Meeting scheduled for May 4, 2016. This represents an increase of around 7%.
Capital expenditures
A total of EUR 50 million (53) were invested during the reporting period, primarily at locations in Germany, the US and Australia. The focus of capital expenditure was on expanding and modernizing existing facilities.
In Germany, investments were in particular made in a new test field, tank storage facilities, laboratories, as well as the roll-out of SAP software at a subsidiary. In the USA, the modernization of the Harvey site near Chicago was continued and construction of a specialty grease factory commenced. In Australia, the purchase of land in Newcastle means that construction of the new facility can now go ahead.
Employees
FUCHS PETROLUB employed 4,823 employees (4,112) as at December 31, 2015. The total workforce therefore increased by 711 persons or 17% year-on-year, of which 649 are attributable to acquisitions in Germany (145), Scandinavia, Central and Eastern Europe (478) and Brazil (26).
The number of employees in Asia-Pacific, Africa increased by two, while Europe added 663 (26%) new employees. In North and South America, the number of employees increased by 46 (9%) compared to December 31, 2014.
Outlook
FUCHS PETROLUB anticipates further increases to both sales revenues and earnings for the financial year 2016. The Group expects sales revenues to grow in the range of 7% to 11% before currency effects. Acquisitions made in 2015 will make a key contribution to this. The Group anticipates an EBIT growth of between 3% and 7%. Free cash flow before acquisitions of EUR 170 to 200 million is expected due to the increased investment activities in 2016.
Mannheim, March 22, 2016
FUCHS PETROLUB SE
Public Relations
Friesenheimer Str. 17
68169 Mannheim
Tel. +49 (0)621 3802-1104
tina.vogel@fuchs-oil.de
www.fuchs.com/group
The following information can be accessed online:
Annual report 2015: www.fuchs.com/group/financial-reports Press photos: http://www.fuchs.com/group/photogallery
Important note
This press release contains statements about future developments that are based on assumptions and estimates by the management of FUCHS PETROLUB SE. 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, for example, include changes in the overall economic climate, changes in procurement prices, changes to exchange rates and interest rates, and changes within the lubricants industry. FUCHS PETROLUB SE provides no guarantee that future developments and the results actually achieved in the future will match the assumptions and estimates set out in this press release and assumes no liability for such.
2016-03-22 Dissemination of a Corporate News, transmitted by DGAP - a service of EQS Group AG.
The issuer is solely responsible for the content of this announcement.
The DGAP Distribution Services include Regulatory Announcements, Financial/Corporate News and Press Releases.
Media archive at www.dgap-medientreff.de and www.dgap.de
Language: English Company: FUCHS PETROLUB SE Friesenheimer Str. 17 68169 Mannheim Germany Phone: +49 (0)621 / 3802-0 Fax: +49 (0)621 / 3802-7190 E-mail: ir@fuchs-oil.de Internet: www.fuchs-oil.de ISIN: DE0005790430, DE0005790406 WKN: 579043, 579040 Indices: MDAX Listed: Regulated Market in Frankfurt (Prime Standard), Stuttgart; Regulated Unofficial Market in Berlin, Dusseldorf, Hamburg, Munich; Terminbörse EUREX
End of News DGAP News Service