FUCHS PETROLUB SE — Earnings Release 2008

Aug 6, 2008

News Details

Corporate | 6 August 2008 07:00

High organic sales growth

Fuchs Petrolub AG / Half Year Results/Half Year Results

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Restriction notice: Free for publication up from August 6, 2008, 10.00 a.m.
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report.

High organic sales growth

Half-year profit after taxes grows by double digits

FUCHS PETROLUB AG, which operates globally in the lubricants sector
continued its value-driven course of growth in the first half of 2008. With
profit after tax of €65.1 million (58.2) FUCHS achieved an increase of 11.9
% against the same period of the previous year. The midyear EBIT for 2008
(earnings before interest and tax) increased by 4.6 % to €98.4 million.
Sales revenues rose by 4.7% to €718.7 million. Earnings per ordinary and
preference share are €2.59 (2.22) and €2.62 (2.25) respectively and
therefore more than 16% higher than the previous year.

The FUCHS PETROLUB Group achieved a significant organic increase in sales
revenues of 9.0% or €62.0 million in the first half of 2008. This increase
was in particular driven by volume. Slight external growth contributed a
further 0.5% or €3.1 million. The current strength of the euro on the other
hand led to negative translation effects. Translation effects reduced
growth by around a half, namely by 4.8% or €32.7 million. There was a net
increase in sales revenues from 4.7% or €32.4 million to €718.7 million
(686.3) .

Driven by good growth in sales revenues, the gross profit increased by €7.1
million or 2.8% to €260.3 million (253.2), while expenses for marketing and
sales, administration and R&D showed only a disproportionately small
increase of +€3.5 million or 2.2%. Accordingly the operating result grew by
€3.6 million or 3.8% to €98.3 million (94.7). The earnings before interest
and tax (EBIT) increased by 4.6% or €4.3 million to €98.4 million (94.1).

Lower borrowings of interest-bearing capital led to an improved financial
result. Net financial expenditure decreased to €4.0 million (4.7). In
addition, the reduction of the rate of taxation to 31.0% (34.9) contributed
to the increase in the net result. The earnings after deduction of income
taxes of €29.3 million (31.2) were €65.1 million (58.2).

Investments in property, plant and equipment and intangible assets came to
€18.8 million (9.8) in first half of 2008. The construction of a new
factory in China, the purchase of real estate in India and the construction
of a new plant for the FUCHS LUBRITECH Group in Kaiserslautern were the
focus of the capital expenditures.

As at June 30, 2008, the workforce of the FUCHS PETROLUB Group consisted of
3,883 employees worldwide. The increase in the workforce by 96 employees
since the start of the year (+2.5%) is due to the full consolidation of our
joint venture in Japan, the filling of vacant positions and the
business-related expansion of employment in Europe and Asia.

The FUCHS PETROLUB Group benefits from its well-balanced positioning with
regard to customer, industries and regions. This is the basis for previous
and further organic growth for the entire year of 2008. In addition to
this, the substantial raw material price increases make price adjustments
necessary with a subsequent increase of sales revenues. For the earnings
before interest and tax (EBIT) FUCHS aims to achieve a slight increase over
the previous year’s result, despite higher raw material costs, stress and
strains from currencies and the emerging slow-down of overall economic
growth. Earnings per share will additionally benefit from a better
financial result and a lower tax rate as well as from a lower number of
shares due to our share buyback program.

The first half year of 2008 at a glance

(in € million) 1-6/2008 1-6/2007
Sales revenues (1) 718.7 686.3
Europe 498.3 468.6
North and South America 98.2 109.0
Asia-Pacific, Africa 139.6 124.7
Consolidation -17.4 -16.0
Earnings before interest and tax (EBIT) 98.4 94.1
Midyear profit after tax 65.1 58.2
Earnings per share in € *
Ordinary share 2.59 2.22
Preference share 2.62 2.25
Gross cash flow 71.2 66.9
Capital expenditures (2) 18.8 9.8
Employees (as at June 30) 3,883 3,822

(1) By company location
(2) In property, plant and equipment and intangible assets

Mannheim, August 6, 2008

FUCHS PETROLUB AG
Public Relations
Friesenheimer Str. 17
68169 Mannheim
Tel.: ++49 (0) 621 3802 – 105

This press release is also available on the internet at
http://www.fuchs-oil.de.
Link to the quarterly report:
http://www.fuchs-oil.de/fileadmin/fuchs_upload/pdf_addons/QR2008/QB37e.pdf

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.
06.08.2008 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

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