Fuchs Petrolub AG / Quarter Results/Dividend
Announcement, transmitted by DGAP - a company of EquityStory AG.
The issuer is solely responsible for the content of this announcement.
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FUCHS continues success in the first quarter of 2007
At the Annual General Meeting of FUCHS PETROLUB AG, more than 1,600
shareholders and guests welcomed the significantly increased dividend
payment and the successful start to the year 2007.
Generating net profits of €27.0 million in the first quarter of 2007, 39%
more than previous year, FUCHS continued its successful development.
The acquisition of two small companies in the important growth market
Brazil, has strengthened the foundation for a specialty lubricants division
in South America.
In the first quarter of 2007, sales revenues grew by 6.1 %. The drop in
sales revenues of 1.8 % caused by external effects results from the sale of
the polishing division and the first time consolidation of the companies in
the Ukraine and Turkey. Taking into account the currency translation
effects (-2.3 %), net sales growth was 2.0 %. In total, sales revenues
amounted to €339.2 million (332.7).
This successful profit development is based on the disproportionate
increase of gross profit by 7.6 % or €8.7 million to €123.2 million and
effective cost management. Earnings before interest and taxes (EBIT)
increased by 30.7 % or €10.3 million to €43.9 million (33.6). Due to a
reduction in debt, the financial result improved, leaving a profit of €27.0
million (19.4) after taxes. This result follows the profitable last three
quarters of 2006 seamlessly. Earnings per ordinary and preference share
amounted to €1.03 (0.74) and €1.04 (0.75) respectively.
Two smaller acquisitions in the specialties segment of FUCHS LUBRITECH have
expanded the Group’s business in the important growth market of Brazil. In
March 2007 the forging business of Igucima Indústria de Lubrificantes Ltda.
Was acquired, and in April the specialty grease business of Tribotécnica
Lubrificantes Especiais Ltda. followed. Through these two acquisitions,
sales revenues of FUCHS DO BRASIL, amounting to €22 million in 2006, will
increase by approximately 20%.
FUCHS expects an increase in sales revenues over the entire year 2007. Due
to the influence of raw material pricing and the development of exchange
rates, growth rates will not be as high as in previous years. With regard
to earnings before interest and taxes, the Group is striving to increase
the 2006 record profit. The high, double-digit growth rates of the previous
years, however, will not be repeated over the entire year 2007, although
the first quarter 2007 shows a high rate of increase due to base effects.
Shareholders’ representatives and shareholders welcomed the
shareholder-friendly dividend policy since the initial public offering in
1985, explained by Stefan Fuchs, Chairman of the Executive Board, in his
speech before the shareholders' general assembly. In this period, annual
dividend payments for preference shares have increased by almost 7 % per
annum. For 2006, total distribution was increased by more than 40 %
compared to the previous year.
With a total presence of almost 40 % and a presence of the ordinary shares
of more than 70 %, executive management proposals were adopted unanimously
or with an overwhelming majority. One of these proposals was the payment of
an increased dividend of €1.00 for each preference share and €0.94 € per
ordinary share.
The first quarter 2007 at a glance
Group
(Values in € million) 1-3/2007 1-3/2006
Sales revenues 1) 339.2 332.7
Europe 234.1 217.3
North and South America 54.7 63.6
Asia-Pacific, Africa 59.7 57.6
Consolidation -9.3 -5.8
Earnings before interest and taxes (EBIT) 43.9 33.6
Net profit for the first quarter 27.0 19.4
Gross cash flow 30.9 24.2
Capital expenditure 2) 4.7 5.3
Employees (on March 31) 3,798 4,037
1) By companies' headquarters
2) In property, plant and equipment and intangible assets
Mannheim, May 2, 2007
FUCHS PETROLUB AG
Public Relations
Friesenheimer Str. 17
68169 Mannheim
Phone: ++49 (0) 621 3802 – 105
The press release can also be found on the Internet at
http://www.fuchs-oil.com
Link to the Quarterly Report:
http://www.fuchs-oil.de/fileadmin/fuchs_upload/pdf_addons/QR2007/QB45_e.pdf
Important note
This press release 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.
DGAP 02.05.2007
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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
www: www.fuchs-oil.de
ISIN: DE0005790430, DE0005790406
WKN: 579043, 579040
Indices:
Listed: Amtlicher Markt in Frankfurt (Prime Standard), Stuttgart;
Freiverkehr in Berlin-Bremen, Düsseldorf, Hamburg, München
End of News DGAP News-Service
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