FUCHS confirms provisional figures for the 2017 financial year: Sales revenues increase to EUR 2.5 billion, earnings at previous year's level
- Sales revenues: +9% to EUR 2.5 billion
- Earnings (EBIT): +0.5% to EUR 373 million
- Dividend proposal: +2% to EUR 0.91 per preference share
The 2017 financial year at a glance
|EUR million||2017||2016||Change ||Change %|
|Sales revenues (1)||2,473||2,267||206||9.1%|
|North and South America||393||349||44||12.6%|
|Earnings after tax||269||260||9||3.5%|
|Free cash flow before acquisitions||142||205||-63||-30.7%|
|Free cash flow||140||164||-24||-14.6%|
|Earnings per share in EUR|| || || || |
|Employees (Dec. 31) (2)||5,190||5,031||159||3.2%|
(1) By company location
(2) Including trainees
In the 2017 financial year, FUCHS PETROLUB increased its Group sales revenues to a new record level of EUR 2.5 billion and at EUR 373 million (371) posted earnings before interest and tax (EBIT) at the previous year's level. Delays in passing on increases in raw material prices and regional changes in the product and customer mix meant that the growth in sales revenues was reflected in EBIT only to a limited extent.
2017 was characterized by strong organic growth and the investment initiative. Investments increased as planned to EUR 105 million (93). Key areas were the expansion and modernization of existing plants but also investments in new plants in Australia, China, the US and South Africa.
The largest single investment in Europe was the expansion of the specialty lubricants plant in Kaiserslautern with production, storage and office facilities. In addition, various replacements and expansion investments were made at the Mannheim site and investments in England (office building), Poland and Sweden (production), which had started in the previous year, were continued or concluded. In Asia-Pacific, Africa, investments largely related to China (start of construction of a new plant in Wujiang), as well as the completion of the new plant in Australia, and our grease plant in South Africa. As in the previous year the focus in the US was on our plant in Harvey, USA, where the grease plant was completed and further investments were made in extensive modernization and expansion.
FUCHS is planning further organic sales revenues and earnings growth in the 2018 financial year. The anticipated increase in sales revenues from +3% to +6% is based largely on organic volume growth combined with changes in the price and product mix. The strongest growth in relative terms is expected to be in Asia-Pacific, Africa. FUCHS again expects EBIT to grow at a below-average rate, and expectations are in the range of +2% to +4%. Investments in new and existing plants, new employees and intensified research and development costs are leading to an increasing cost base.
Capital employed will increase further. Business volume and thus, also the required net operating working capital (NOWC) will continue to grow. Furthermore, investments of around EUR 140 million are planned. Key areas will be the new plant and expansions at the existing locations in China. Furthermore, plant expansions and modernization activities are planned in the US, Germany, Sweden, Russia and the UK. Therefore, FUCHS is expecting free cash flow before acquisitions at the previous year's level (EUR 142 million).
Mannheim, March 21, 2018
FUCHS PETROLUB SE
Friesenheimer Str. 17
Tel. +49 621 3802-1207
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The FUCHS Group develops, produces and markets high-grade lubricants and related specialties for virtually all industries and areas of application. Formed in Mannheim in 1931, the Group employs more than 5,000 people worldwide at 58 operating companies. FUCHS is the world's largest independent lubricant manufacturer. Its most important markets in terms of sales revenues are Western Europe, Asia and North America.
This press release contains statements about future developments that are based on assumptions and estimates by the management of FUCHS PETROLUB SE. Even if the management is of the opinion that these assumptions and estimates are accurate, actual future developments and results can differ significantly from these assumptions and estimates due to a variety of factors. These factors can, for example, include changes in the overall economic climate, changes in procurement prices, changes in exchange rates and interest rates, and changes within the lubricants industry. FUCHS PETROLUB SE 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.
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