Fuchs Petrolub AG / Final Results
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FUCHS: Overall a pleasing end to the financial year 2008
- At EUR1,394 million, sales revenues are 2.1 % above previous year
- Earnings after tax of EUR110.3 million
- Dividend set to be increased to EUR1.60 per preference share
FUCHS PETROLUB AG, with global operations in the lubricant business,
recorded an increase in revenues of 2.1 % to EUR1,393.7 million in the
financial year 2008. However, due to the global economic collapse in the
fourth quarter of 2008, it was not possible to achieve the previous year's
level in terms of earnings before interest and taxes (EBIT). EBIT was
EUR171.7 million (195.2), which represents a fall of 12 %. Earnings after
taxes were EUR110.3 million (120.3), which represents a fall of 8.3 %.
Earnings per ordinary share were EUR4.43 (4.63) and per preference share
EUR4.49 (4.69), both 4.3 % below the previous year's level.
Performance
The organic growth of the FUCHS PETROLUB Group in 2008 was price-driven. In
total, the Group recorded an organic increase in revenues of EUR72.5
million or 5.3 % for the whole year. While it was possible to achieve
appreciable increases in volume in the first half of the year, the poor
economic climate meant that sales in the fourth quarter were significantly
below the previous year's level. By the end of the year, the previous
year's volume was only just achieved.
In 2008 the FUCHS PETROLUB Group recorded its second best earnings ever,
although it was not possible to repeat the record profits of 2007. This was
due to the collapse in the global economy caused by the financial market
crisis in the second half of 2008, which was particularly severe in the
fourth quarter of 2008.
Yet despite this, the Group managed to record satisfactory earnings in
2008. EBIT was EUR171.7 million (195.2) and profit after tax was EUR110.3
million (120.3). The fall in total earnings equates to 4.3 % in terms of
earnings per share due to the reduced number of shares caused by the share
buyback program.
The FUCHS PETROLUB Group starts 2009 in a solid financial position. Despite
the buyback of shares the equity ratio at 44.8 % (45.6) saw little change
in the reporting year.
As a result of severe increases in raw material prices, a downward trend in
sales revenues in the fourth quarter, tax payments and greater capital
expenditures, the free cash flow decreased to EUR7.5 million (128.4).
Capital expenditure
The FUCHS PETROLUB Group dedicated EUR46.6 million (24.4) to capital
expenditure in property, plant and equipment and intangible assets in 2008.
The reason for the significant increase compared to the previous years was
the launch of the investment program announced in mid 2008 which covers the
two German sites in Mannheim and Kaiserslautern as well as China, India and
Brazil.
Employees
As at December 31, 2008, the FUCHS PETROLUB Group employed 3,855 people
worldwide (3,787). The total number of employees has therefore increased
slightly year on year by 68 people or 1.8 %.
Proposed dividend
The Supervisory Board and Executive Board will propose to the Annual
General Meeting on May 6, 2009 that the dividend for 2008 be raised by
EUR0.10 per share to EUR1.60 (1.50) per preference share and EUR1.54 (1.44)
per ordinary share compared to the previous year. This would mean the total
dividend payout is at around the same level as the previous year. However,
when the share buyback is taken into account, this represents an increase
in dividend per share of 7 %.
Forecast
Business development in the first two months of 2009 continued to be
generally unsatisfactory. The customers of FUCHS continue to reduce their
inventories and are ordering less in the light of their own weak order
situation.
FUCHS begins 2009, which will certainly be a difficult year, in robust
condition and is confident of its proven business model. Due to the
worldwide recession, downward trends in sales revenues are to be expected
in all regions in 2009. Further, it may be assumed that the previous year's
results will not be reached. FUCHS will also continue to work on potential
weak areas, continue its disciplined system of cost management and take all
measures necessary. Despite the extremely difficult economic situation, the
FUCHS PETROLUB Group still sees opportunities for further expanding its
market position and making the most of sensible acquisition opportunities
both strategically and financially. In terms of cash development, the Group
seeks to continue the good cash flow generation of the previous years.
Key figures of the Group
2008 2007
Sales revenues (1) EUR1,393.7 million EUR1,365.3 million
Europe EUR945.0 million EUR934.1 million
North and South America EUR205.9 million EUR208.3 million
Asia-Pacific, Africa EUR274.9 million EUR253.4 million
EBIT EUR171.7 million EUR195.2 million
Profit after tax EUR110.3 million EUR120.3 million
Earnings per share
Ordinary share EUR4.43 EUR4.63
Preference share EUR4.49 EUR4.69
Dividends
Ordinary share (2) EUR1.54 EUR1.44
Preference share (2) EUR1.60 EUR1.50
Free cash flow EUR7.5 million EUR128.4 million
Capital expenditure (3) EUR46.6 million EUR24.4 million
Employees (as at December 3,855 3,787
31)
(1) By company's location
(2) Dividend proposal 2008 to the Annual General Meeting on May 6, 2009
(3) In property, plant and equipment and intangible assets
Mannheim, March 27, 2009
FUCHS PETROLUB AG
Public Relations
Friesenheimer Str. 17
68169 Mannheim
Germany
Tel.: +49 (0) 621 3802-124
The listed information below can be found in the internet with the
following links:
Press release: http://www.fuchs-oil.com
Annual Report 2008: http://www.fuchs-oil.de/annual_report08.html
Press photos: http://www.fuchs-oil.de/pressphotos.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
agree with the assumptions and estimates set out in this press release and
assumes no liability for such.
27.03.2009 Financial News transmitted by DGAP
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Language: English
Issuer: Fuchs Petrolub AG
Friesenheimer Str. 17
68169 Mannheim
Deutschland
Phone: +49 (0)621 / 3802-0
Fax: +49 (0)621 / 3802-190
E-mail: contact-de.fpoc@fuchs-oil.de
Internet: www.fuchs-oil.de
ISIN: DE0005790406, DE0005790430
WKN: 579040, 579043
Indices: MDAX
Listed: Regulierter Markt in Frankfurt (Prime Standard), Stuttgart;
Freiverkehr in Berlin, Düsseldorf, Hamburg, München
End of News DGAP News-Service
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