FUCHS confirms preliminary figures for the financial year 2019: Sales revenues of EUR 2.6 billion at previous year's lev-el, EBIT 16% below previous year
DGAP-News: FUCHS PETROLUB SE / Key word(s): Annual Results
FUCHS confirms preliminary figures for the financial year 2019: Sales revenues of EUR 2.6 billion at previous year's level, EBIT 16% below previous year
- Sales revenues: +0% to EUR 2.6 billion
- Earnings (EBIT): -16% to EUR 321 million
- Dividend proposal: +2% to EUR 0.97 per preference share
- Annual General Meeting postponed
(1) By company location; previous year figures comparable
In the 2019 financial year, FUCHS' sales revenues of EUR 2.6 billion (2.6) remain stable at the high level of the previous year. Earnings before interest and tax (EBIT) decreases by 16% to EUR 321 million (383). On a comparable basis, excluding the one-off effect from the sale of the trading joint venture in Switzerland in 2018, EBIT is -13% or EUR 50 million below the previous year (371). The decline in earnings at constant sales is due to the planned increase in the cost base, the growth and investment program and the decline in volume as a result of the weak economic environment.
The region Europe, Middle East and Africa (EMEA) was the focus of the expansion and modernization measures, accounting for around 60% of the expenditure. The largest single investment in the region was in Sweden where the construction of a new plant is well underway. In Kaiserslautern, the construction of a new high-bay warehouse, new production and office space was completed, and work continued on a new polyurea specialty grease plant, with which Kaiserslautern will further expand its position as a location for specialty lubricants. At the Mannheim site, work continued on optimizing internal processes in various ways and the tank farm was modernized and expanded. The UK continued the construction of its new raw material warehouse, while in Russia, construction work began on the plant expansion.
Investments of EUR 31 million were carried out in Asia-Pacific. FUCHS opened one of its most modern production plants with an automated high-bay warehouse and fully automated production in Wujiang, China. It replaces the previous plant in Shanghai and has almost twice the capacity. The administration and research and development laboratories remaining in Shanghai were expanded in 2019.
Around EUR 22 million was invested in the region North and South America. In the US, work at the Harvey site continued on a plant for the production of lubricants for OEM customers as well as the modernization of the metalworking fluids plant, and investments were made in additional office space. In Kansas City the modernization of the site continued.
The extensive investments in production plants and IT infrastructure will continue as part of our growth strategy, and research and development activities will also be strengthened. One of the objectives is to actively shape the increasingly complex requirements of the future. Given the profitability and financial strength of the Group, this process, which temporarily involves higher cost increase than earnings increase, will continue despite the slowdown in the global economy. FUCHS plans to invest EUR 120 million, particularly in Germany, the US, China, South Africa, Russia and Sweden. Capital employed will continue to increase and the net working capital required for the growing volume of business will also rise. For the 2020 financial year, FUCHS therefore anticipated a free cash flow before acquisitions of EUR 130 million when the annual financial statements were prepared. This expectation also does not take into account the negative effects of the coronavirus on the global economy.
Postponement of the Annual General Meeting 2020 due to the coronavirus pandemic
The following information is available online:
|Company:||FUCHS PETROLUB SE|
|Friesenheimer Str. 17|
|Phone:||+49 (0)621 / 3802-0|
|Fax:||+49 (0)621 / 3802-7190|
|Listed:||Regulated Market in Frankfurt (Prime Standard), Stuttgart; Regulated Unofficial Market in Berlin, Dusseldorf, Hamburg, Munich, Tradegate Exchange|
|EQS News ID:||1001285|
|End of News||DGAP News Service|