The international lubricant group, FUCHS PETROLUB continued its
dynamic corporate development in the third quarter of 2006. In the
first nine months of 2006, the Group generated earnings after tax of
¤71.8 million (56.0). This represents an increase of 28.2 % over
third-quarter earnings for the previous year, which also included
income from the sale of land no longer required for operational
purposes. In the first nine months sales revenues rose by 13.2 % to
¤999.5 million (882.6). The profit per ordinary and preference share
amounted to ¤2.73 and ¤2.78, respectively. Free cash flow increased
to ¤43.1 million and is therefore clearly above that of the previous
year (23.4). The FUCHS PETROLUB Group is raising its forecast result
for the whole of 2006 and expects a double-digit increase in earnings
before interest and taxes (EBIT) compared to the previous year's
value of ¤128.8 million.
The essential factors driving the internal growth by 13.2 % were
considerable increases in raw-material prices, which subsided
slightly in the third quarter, and mix improvements. Low margin
businesses were also discontinued. In relative terms, the greatest
growth in sales revenues was seen in the Asia-Pacific region and
Africa. Europe, on the other hand, saw the highest absolute growth in
sales revenues. The positive currency translation effect continued to
recede and only made a 0.9 percentage point contribution to the
increase in sales revenues. The sales-dictated deconsolidation of the
LIPPERT-UNIPOL Group and also of our company in Bangladesh resulted
in negative external growth of 0.9 %.
Thanks to an increase in sales revenues by 13.2 %, it was possible to
overcompensate for the considerable increase in the cost of sales
which had occurred as a consequence of the increases in raw-material
costs. Careful appreciation of costs meant the selling and
distribution, administration and R&D costs only experienced a
moderate increase of 2.1 % over the comparative value for the
previous year. This resulted in operating profit rising to ¤120.8
million (90.9), an increase of 32.9 %.
As expected, the pre-tax income of ¤7.6 million resulting from the
sale of land no longer required for operational purposes which was
included in other operating income in the previous year did not
materialize again. Despite this, earnings before interest and taxes
(EBIT) were ¤120.6 million (97.4), an increase by 23.8 %. EBIT
therefore make up 12.1 % (11.0) of sales revenues.
As a result of reduced financial liabilities, the negative financial
income improved to ¤9.5 million (11.6). After taxes, this then leaves
income of ¤71.8 million (56.0).
Investment in property, plant and equipment and intangible assets was
relatively restrained in the third quarter, amounting to ¤13.2
million (17.6) in the first nine months of 2006. The main bulk of
investments went in particular on expanding and modernizing existing
plants in Germany, England, Italy and the USA.
As of 30 September 2006, the FUCHS PETROLUB Group employed 3,792
people (4,158). As a result of consolidation through the sale of two
companies, the number of employees decreased over the preceding
year's equivalent date.
Raw-material costs have developed differently in different regions.
The FUCHS PETROLUB Group continues to work on the basis that prices
will remain high. FUCHS PETROLUB will respond to the cost increases
on the purchasing side with price increases, a focused specialization
strategy and a stable cost base. The weakening, which could be
observed in the third quarter, of the price-related increase in sales
revenues will continue in the fourth quarter due to base effects,
which means that the increase in sales revenues over the whole year
will fall behind the rate of 13.2 % achieved after nine months. The
Group is raising its forecast and expects a double-digit increase in
earnings before interest and taxes (EBIT) compared to the previous
year's value of ¤128.8 million, which was positively influenced by
profits resulting from the sale of land.
The nine months of 2006 at a glance
FUCHS PETROLUB Group
(Values in ¤ million) 1-9/2006 1-9/2005
Sales revenues 1 999.5 882.6
Europe 656.6 581.4
North and South America 181.9 165.4
Asia Pacific, Africa 178.1 151.3
Consolidation -17.1 -15.5
Earnings before interest and taxes (EBIT)2 120.6 97.4
Net profit for the nine months 71.8 56.0
Gross cash flow 87.1 70.4
Capital expenditure3 13.2 17.6
Employees (on 30.9.) 3,792 4,158
1 By companies' headquarters
2 In property, plant and equipment and intangible assets
Mannheim, 9 November 2006
FUCHS PETROLUB AG
Public Relations
Friesenheimer Str. 17
68169 Mannheim
Tel.: ++49 (0) 621 3802 - 105
The press release can also be found on the Internet at
http://www.fuchs-oil.de.
Important note
This Press Information 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.
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WKN: 579040; ISIN: DE0005790406; Index: SDAX, CDAX, CLASSIC All
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