For the fourth successive year, FUCHS PETROLUB AG, which operates globally in the lubricants sector, has increased its net profit by a double digit percentage, further strengthening its accounts. Total Group sales revenues increased to just under €1.2 billion. New record earnings reached €74.2 million (40.1). Eliminating special effects, this is an increase of approximately 40%. Earnings per ordinary share and preference share amounted to €3.08 and €3.14 respectively. Eliminating special effects, this was €2.80 and €2.86 (€1.99 and €2.05) respectively.
The Executive Board and the Supervisory Board not only recommend an increase in dividends of €0.06 per share to €0.61 (0.55) for each ordinary share and €0.67 (0.61) for each preference share, but also the payment of an anniversary bonus of €0.10 per share and the issue of one bonus share for each ten shares held. FUCHS pays tribute to its 75 year existence by means of these shareholder-friendly measures.
Positive macroeconomic and industry specific developments benefited the FUCHS business. Eliminating consolidation and currency translation effects, Group sales revenues increased by 6.9% (6.7) in comparison with the previous year. Including currency translation effects and the consolidation of the OVOLINE acquisition in Great Britain, the sales revenues increased by 8.7% (5.3) to €1,192.2 million (1,096.3).
Earnings before interest and taxes (EBIT) before special effects increased to €121.2 million, exceeding the record performance of the previous year by 27.8%. Special effects relate to earnings from the sale of land (€7.6 million gross and €6.4 million net) as well as the cessation of goodwill amortization in the previous year (€8.6 million). The adjusted net profit rose by almost 40% (€67.8 million in comparison with €48.7 million in the previous year).
Despite the inflated current assets caused by the considerable increases in the cost of raw materials, and after the Group invested €28.8 million (22.1) in property, plant, and equipment and intangible assets, a free cash flow of €51.7 million was generated.
The shareholders' equity as a percentage of the balance sheet total increased sharply to 33.6% (25.4). The Group's total return on capital amounted to 25.8% (19.0) in 2005.
As of December 31, 2005 the Group employed 4,137 people (4,155) worldwide, effectively maintaining a constant workforce.
In the first two months of 2006, sales revenues of the FUCHS PETROLUB Group have continued to grow. An increase in Group sales revenues is expected across all regions for 2006. When it comes to earnings before interest and taxes (EBIT) before special effects, the company hopes to tie in with the record result of the previous year while maintaining the operating cash flow at a high level.
Mannheim, April 3, 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.
Note:
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