- Sales revenues and earnings increased again
- Earnings before interest and tax up 7.6% to EUR 72.5 million
- Positive outlook for 2012
The first three months 2012 at a glance
| (Amounts in EUR million) | 1-3/2012 | 1-3/2011(2) |
|---|---|---|
| Sales revenues (1) | 448.4 | 403.8 |
| Europe | 263.5 | 247.0 |
| Asia-Pacific, Africa | 118.9 | 99.6 |
| North and South America | 79.8 | 68.9 |
| Consolidation | -13.8 | -11.7 |
| Earnings before interest and tax (EBIT) | 72.5 | 67.4 |
| Profit after tax | 51.5 | 47.1 |
| Earnings per share in EUR | ||
| Ordinary share | 0.72 | 0.65 |
| Preference share | 0.73 | 0.66 |
| Gross cash flow | 53.3 | 50.7 |
| Capital expenditures | 22.3 | 6.5 |
| Employees (as at March 31) | 3,722 | 3,594 |
(1) By company location
(2) The previous year's figures have been adjusted for reasons of comparability, see "changes in the accounting policies" in the notes to the consolidated financial statements.
Performance
The FUCHS PETROLUB Group increased its sales revenues in all regions in the first quarter of 2012. Sales volumes enjoyed a particular increase in North America, Australia and Eastern Europe. Exchange rate movements also resulted in further growth of EUR 9.2 million or 2.3%. In addition to this, all regions recorded price and mix-related increases in sales revenues. This led to organic growth of EUR 35.0 million or 8.7%. Total revenues of EUR 448.4 million (403.8) were recorded, which represents an increase of 11.0% over the same quarter of the previous year.
In the first three months of the year, gross profit increased by EUR 9.6 million or 6.3% to EUR 161.9 million (152.3). The significant increases in raw material prices observed during the course of 2011 were a key contributor to the increases in sales revenues. The material and production costs for our lubricants (cost of sales) increased above-average by 13.9%. The Group was able to compensate for inflation-based increases in personnel and other direct costs, and also managed to cover the additional personal and infrastructure costs caused by its growth initiative. Total expenses for selling, distribution, administration and research and development increased by EUR 6.9 million or 8.1% toEUR 92.2 million (85.3).
Taking into account income from participations, this leads to earnings before interest and taxes of EUR 72.5 million. This represents EUR 5.1 million or 7.6% more than the record set in the first three months of 2011 (67.4). Earnings after taxes rose at a disproportionately high rate of 9.3% to EUR 51.5 million (47.1). Earnings per share increased to EUR 0.72 (0.65) per ordinary share and EUR 0.73 (0.66) per preference share.
Capital expenditures
Investments in property, plant and equipment and intangible assets were EUR 12.2 million (6.5) in the first quarter of 2012. The primary focuses in this regard were the completion of our new research and development center in Mannheim, construction of a new facility in Russia and the modernization of our US production facility in Chicago.
The Group spent a further EUR 10.1 million in its investments in companies consolidated using the equity method. This allowed the acquisition of an automotive lubricants business at the start of 2012 to be partially financed by the Group's joint venture in Turkey.
Employees
As at March 31, 2012, the global workforce of the FUCHS PETROLUB Group consisted of 3,722 employees. On a like-for-like basis, the number of employees at the start of the year was 3,673 compared with 3,594 during the same period of the previous year.
Outlook
Despite the various latent risks in place, FUCHS rates the current overall economic situation as positive. Risks are present in the form of raw material price increases, uncertainties resulting from the national debt crisis and global risks, such as in the Middle East.
Insofar as and as long as these risks do not materialize to an appreciable extent, the Group anticipates year on year increases both in sales revenues and earnings. However, the development of the gross margin will be dependent on the trend in raw material prices. In addition to this, personnel and other direct costs will be appreciably above the previous year's level as a result of our ongoing growth initiative.
Overall, FUCHS is striving to exceed the record EUR 264.2 million earnings before interest and tax achieved in the previous year. However, the earnings recorded in the first quarter cannot simply be extrapolated over the full year.
Mannheim, May 2, 2012
FUCHS PETROLUB AG
Public Relations
Friesenheimer Str. 17
68169 Mannheim
Germany
Tel.: ++49 (0) 621 3802-1124
E-mail: tina.vogel@fuchs-oil.de
The information below can be accessed at the following web addresses:
Press release:
www.fuchs-oil.com
Interim report as at March 31, 2012
www.fuchs-oil.com/ir_firstquarter.html
Press photos:
www.fuchs-oil.com/pressphotos1.html
Important note
This press release contains statements about future developments 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 in 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 match the assumptions and estimates set out in this press release and assumes no liability for such.