Shareholders welcome a dividend bonus and bonus shares to mark the company's 75th anniversary
In front of almost 1,800 shareholders and guests who represented a total share capital of 41 % at the Annual Shareholders' Meeting of FUCHS PETROLUB AG, which operates globally in the lubricants sector, the Chairman of the Executive Board Stefan Fuchs marked the company's 75th anniversary by reporting a positive performance for the 2005 financial year in which record earnings of €74.2 million were achieved - a new record for the fourth successive year. After a successful start to the anniversary year in the first quarter of 2006, April and May were also positive months, which means that, in the first five months of the current year, the Group's sales revenues of €552 million represent a growth in sales revenues of 18 % as compared with the previous year. The Chairman of the Executive Board repeated the statement he had made previously that for the 2006 financial year the Group was aiming to achieve earnings before interest and taxes which should not fall below the previous year's profit of €128.8 million. As this profit in the previous year was influenced in a positive way by gains arising from the sale of land amounting to €7.6 million, the Group is aiming to achieve an operating profit which surpasses that of the previous year.
Against the background of the company's 75th anniversary, Stefan Fuchs underlined the fact that right from the start the company had managed to make a name for itself through advances in technology. "The company's history stretches from pure Pennsylvanian oils which were imported and distributed in 1931 through to the first zinc-free engine oil. The fundamental business model has proved to be successful right through to the present day." In this context, the Chairman of the Executive Board looked back on the 2005 financial year, which was characterized by significant increases in the cost of raw materials. "The price for base oils containing mineral oil rose by approximately 70 % in 2005 and has risen by a further 10 % in 2006. We have had to deal with not only high raw material prices but also partial shortages of these raw materials. The business model, which has been mentioned, has again proved to be the right one. We are not dependent on single key accounts or industries, we are technological leaders in strategically important niches, and pursue value-oriented growth."
In their contributions, shareholders' representatives from the German Association of Private Investors (Deutsche Schutzvereinigung für Wertpapierbesitz) and the Association for the Protection of Capital Investors (Schutzgemeinschaft der Kapitalanleger) praised the creditable performance of the share price, which resulted in new highs for the share price for both types of shares for the fifth year in succession and led to further improvement in the company's fundamental data.
With a presence of 69 % of the share capital carrying voting rights, the proposals of the management were passed unanimously or with an overwhelming majority.
These proposals included the payment of a dividend increased by €0.06 to €0.61 for each ordinary share and €0.67 for each preference share, as well as an anniversary bonus of €0.10 for each ordinary share and preference share. In addition, the Annual Shareholders' Meeting also decided to issue one bonus share for every ten shares.
Mannheim, June 21, 2006
FUCHS PETROLUB AG
Public Relations Department
Friesenheimer Str. 17
68169 Mannheim
Tel.: ++49 (0) 621 3802 - 105
This press release is also available on the internet: www.fuchs-oil.de
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.