- Earnings before interest and tax reach EUR 179.9 million (171.7)
- Free cash flow increased to EUR 180.8 million
- Dividend set to increase to EUR 1.70 per preference share
| (Values in EUR million) | 2009 | 2008 |
|---|---|---|
| Sales revenues (1) | 1,178.1 | 1,393.7 |
| Europe | 742.5 | 945.0 |
| North and South America | 176.9 | 206.0 |
| Asia-Pacific, Africa | 289.8 | 275.0 |
| Consolidation | -31.1 | -32.3 |
| Earnings before interest and tax (EBIT) | 179.9 | 171.7 |
| Profit after tax | 121.4 | 110.3 |
| Earnings per share in EUR | ||
| Ordinary share | 5.07 | 4.43 |
| Preference share | 5.13 | 4.49 |
| Dividends per share in EUR | ||
| Ordinary share (2) | 1.64 | 1.54 |
| Preference share (2) | 1.70 | 1.60 |
| Free cash flow | 180.8 | 7.5 |
| Capital expenditure (3) | 29.9 | 46.6 |
| Employees (as at December 31) | 3,488 | 3,855 |
(2) Dividend proposed for 2009 to the Annual General Meeting on May 5, 2010
(3) In property, plant and equipment and intangible assets
Performance
The worldwide economic recession, triggered by the financial crisis, had a major effect on demand for lubricants in 2009. The FUCHS PETROLUB Group was also impacted by this. As such, sales revenues fell by 15.5% to a level of EUR 1,178.1 million in 2009 despite positive price effects. And the slight external growth of 0.7% recorded was consumed by negative effects of currency exchange rates of 0.8%.
By taking early and consistent action, and thanks to a slight improvement in the economic framework conditions in the second half of the year, FUCHS PETROLUB was able to increase profit after tax to EUR 121.4 million and earnings per share by 14% year on year.
It was possible to limit the effect of the significant drop in sales revenue with cost-cutting measures in the form of structural adjustments to the reduced level of business, and through a recovery in the gross margin, which had been under pressure in the previous year. In view of this fact, the gross profit of EUR 457.1 million recorded by the Group was just 6.4% or EUR 31.0 million below the previous year's level (488.1).
Indeed, total sales, administration and R&D expenses fell by 9.6% or EUR 30.2 million year on year. FUCHS was thereby able to record operating profit of EUR 174.0 million, which was just EUR 0.8 million or 0.5% below the previous year's level (174.8). Earnings before interest and tax (EBIT) increased by 4.8% or EUR 8.2 million to EUR 179.9 million (171.7).
The tax rate fell to 29.8% (32.2). Following the deduction of tax expenses of EUR 51.5 million (52.5), profit after tax amounts to EUR 121.4 million, which is EUR 11.1 million or 10.1% more than in 2008 (110.3).
Capital expenditure and investments in companies
In the reporting year the FUCHS PETROLUB Group continued with its investment program announced mid-2008 comprising the two German sites in Mannheim and Kaiserslautern as well as in China, India and Brazil. Apart from these investments in the future, all other investments were curtailed. At EUR 30.1 million (46.6) investments in property, plant and equipment and intangible assets were significantly down.
Employees
As at December 31, 2009, the FUCHS PETROLUB Group employed 3,488 people worldwide (3,855). Due to the alignment of the Group's global infrastructure to a lower business volume, the total number of employees fell by 367 people or 9.5% compared to the previous year.
2,474 (2,761) people or 71% of staff were employed abroad and 1,014 (1,094) in Germany.
Proposed dividend
The Supervisory Board and Executive Board will propose to the Annual General Meeting on May 5, 2010 that the dividend for 2009 be raised by EUR 0.10 per share to EUR 1.64 (1.54) per ordinary share and EUR 1.70 (1.60) per preference share compared to the previous year. An increase in the total dividend payout to EUR 39.5 million (37.1) would result in an increase of the dividends of 6.5% per ordinary share and 6.3% per preference share.
Forecast
The macroeconomic situation started to show improvement in many countries in the second half of 2009 and the start of 2010, although the high level of previous years is unlikely to be reached in the foreseeable future. This trend continued into the first two months of 2010.
To what extent the global economic recovery predicted by experts and associations will be a continuous and permanent process, or whether it will come in waves currently remains unclear. FUCHS PETROLUB expects to see a moderate global economic recovery for 2010 as a whole. FUCHS therefore anticipates moderate growth with regard to lubricant demand in 2010.
On this basis, FUCHS is planning for increases in terms of sales revenues and earnings compared to the previous year in all three global regions. Due to a base effect, the first half of 2010 is likely to see the greatest benefit from this. However, the above-average earnings before interest and tax (EBIT) of the second half of 2009 has set the bar high, which should not be extrapolated into the future.
Mannheim, March 25, 2010
FUCHS PETROLUB AG
Public Relations
Friesenheimer Str. 17
68169 Mannheim
Germany
Phone: ++49 (0) 621 3802-1124
The information below can be accessed at the following web addresses:
Press release:
www.fuchs-oil.com
Annual report 2009:
www.fuchs-oil.de/annual_report09.html
Press photos:
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.