FUCHS PETROLUB SE: Strong third quarter supports nine-month results in a challenging market environment
EQS-News: FUCHS PETROLUB SE / Key word(s): 9 Month figures/9 Month figures
Strong third quarter supports nine-month results in a challenging market environment
FUCHS at a glance
1 By company location.
“In a persistently challenging environment with raw material costs continuing to rise, the zero-Covid strategy in China still being consistently implemented, increasing inflation and recurring bottlenecks in our supply chains, FUCHS achieved an EBIT of EUR 280 million in the past nine months. Thanks to a very good third quarter, this was at the level of the previous year, which benefited from catch-up effects from the Covid-19-pandemic and tailwinds in raw material prices. In addition to the currency development, the North and South America region in particular contributed to the good result.
The significant increases in raw material costs were offset by sales price increases. Both resulted in a strong inflation of inventories and receivables. This effect explains the free cash flow before acquisitions, which amounted to EUR -31 million after nine months due to the high level of tied-up funds. Our balance sheet structure remains extremely solid and our financial position continues to be very good. We are using this solid basis to utilize the three megatrends of sustainability, mobility transition and digitization to add value for FUCHS as part of our FUCHS 2025 Strategy.
Stefan Fuchs, Chairman of the Executive Board of FUCHS PETROLUB SE
Business Development in the Group
FUCHS PETROLUB achieved sales of EUR 2,542 million (2,129) in the first nine months of 2022, which was 19% higher than the strong prior-year period.
Sales and earnings in the regions
At EUR 1,511 million (1,276), sales in the region Europe, Middle East, Africa (EMEA) were 18% above the first nine months of 2021. The majority of the entities contributed to this with double-digit growth rates. Above-average growth was recorded especially in South Africa, the United Kingdom and Sweden. EBIT was EUR 8 million below the previous year at EUR 123 million (131) due to lower results in Germany and Southern Europe.
In its current forecast from October, the IMF reduced its expectation for the growth of the global economy to now only 2.7%.Nevertheless, FUCHS remains optimistic about the remaining months of 2022 and confirms its earnings forecast and increases the sales revenues forecast due to inflation as follows:
Our global footprint and solid financial base remain robust and FUCHS continues to focus on profitable growth and the consistent implementation of the FUCHS 2025 Strategy.
The following information is available online:
Image and video material: https://www.fuchs.com/gb-en/photo-gallery/
Founded in 1931 as a family business in Mannheim, FUCHS is now the world's largest independent supplier of innovative lubrication solutions, covering almost every industry and application. Today, the company's 6,000 employees in over 50 countries still share the same goal: to keep the world moving both sustainably and efficiently. To live up to this claim, we think in terms of perfection, not merely standards. When developing individual solutions, we enter into an intensive customer dialogue – acting as an experienced consultant, innovative problem solver and reliable team partner.
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.
28.10.2022 CET/CEST Dissemination of a Corporate News, transmitted by EQS News - a service of EQS Group AG.
|Company:||FUCHS PETROLUB SE|
|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:||1473887|
|End of News||EQS News Service|