This increase in earnings is mainly attributable to a rise in gross profit of €18.7 million or 8.0% and the sales & marketing, administration and R&D expenses which increased moderately by a total of €1.3 million or 0.8%. Consequently, the earnings before interest and tax (EBIT) grew by 25.5% to €94.1 million (75.0). Helped by an improved financial result due to reduced financial liabilities, profit after tax reached €58.2 million (44.1).
In the first half of 2007, the FUCHS PETROLUB Group invested €9.8 million (10.2) in property, plant and equipment, and intangible assets. The construction of the new plant in China begins in the second half of the year.
At June 30, 2007, the FUCHS PETROLUB Group employed a staff of 3,822. The increase in staff numbers in the first half of 2007 in comparison to year's end 2006 (3,765) is largely due to the first-time consolidation of the companies in the Ukraine and Turkey, to acquisitions in Brazil, the positive business performance and the resultant workforce increase in Western and Eastern Europe.
We expect the development of sales revenues experienced in the first six months of 2007 to continue in the second half of the year. We anticipate earnings before interest and tax (EBIT) to reach a new record level in 2007. The Group is aiming for double-digit growth on the previous year's record €161 million, but at a reduced growth rate compared to the first half of the year.
The first half 2007 at a glance
| (amounts in € million) | 1-6/2007 | 1-6/2006 |
|---|---|---|
| Sales revenues 1 | 686.3 | 671.8 |
| Europe | 468.6 | 439.6 |
| North and South America | 109.0 | 124.4 |
| Asia Pacific, Africa | 124.7 | 119.6 |
| Consolidation | -16.0 | -11.8 |
| Earnings before interest and tax (EBIT) | 94.1 | 75.0 |
| Profit after tax for the first half year | 58.2 | 44.1 |
| Gross cash flow | 66.9 | 54.2 |
| Capital expenditures2 | 9.8 | 10.2 |
| Employees (as at June 30)3 | 3,822 | 3,835 |
2 In property, plant and equipment and intangible assets
3 Previous year figure adjusted by 206 employees of LIPPERT-UNIPOL sold on July 1, 2006.
Mannheim, 3 August 2007
FUCHS PETROLUB AG
Public Relations
Friesenheimer Str. 17
68169 Mannheim
Phone: ++49 (0) 621 3802 - 105
The press release can also be found on the Internet at www.fuchs-oil.com
Link to the Quarterly Report:
www.fuchs-oil.de/fileadmin/fuchs_upload/pdf_addons/QR2007/QB28e.pdf
Important note
This press release contains statements about future development 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 to 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.