FUCHS PETROLUB SE — Earnings Release 2010

Nov 3, 2010

News Details

Corporate | 3 November 2010 07:00

Fuchs Petrolub AG: Profit after tax for the first nine months of the year increased to EUR 132.7 million

Fuchs Petrolub AG / Key word(s): Quarter Results

03.11.2010 07:00

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Profit after tax for the first nine months of the year increased to EUR

132.7 million

– Sales revenues back to the 2008 level

– Profitability of the first half of 2010 virtually maintained

– Profit after tax increased to EUR 132.7 million

The first nine months of 2010 at a glance

(Values in EUR million) 1-9/2010 1-9/2009

Sales revenues (1) 1,083.5 873.2

Europe 650.8 553.7

Asia-Pacific, Africa 281.0 211.1

North and South America 183.6 129.9

Consolidation – 31.9 – 21.5

Earnings before interest and tax (EBIT) 190.8 122.7

Profit after tax 132.7 81.8

Earnings per share in EUR

Ordinary share 1.94 1.61

Preference share 1.95 1.63

Gross cash flow 127.1 89.7

Capital expenditure (2) 21.6 22.1

Employees (as at September 30) 3,538 3,536

(1) By company location

(2) In property, plant and equipment and intangible assets

Performance

The FUCHS PETROLUB Group continued its strong growth in sales revenues in

the third quarter of 2010. At EUR 1,083.5 million, revenues enjoyed a 24.1%

increase for the first nine months of the year over the same period of the

previous year (873.2). Consequently, the then highest nine-month figure of

2008 (1,083.5) was equaled again. The strong growth, which lifted Group

sales revenues back up to their pre-crisis level, was driven in particular

by the regions Asia-Pacific, Africa and North and South America.

Together with the pronounced growth in sales revenues, the FUCHS PETROLUB

Group also significantly improved its earnings position. It was therefore

possible to continue the strategy of profitable growth.

At EUR 427.3 million, gross profit was 27.5% or EUR 92.2 million up on the

same period from last year (335.1). Selling and distribution,

administration and research & development expenses increased by only 12.1%

or EUR 26.1 million to a level of EUR 241.0 million (214.9), which means

they increased at a lower rate than sales revenues. After taking into

account other operating income and expenses, as well as investment income,

the Group recorded earnings before interest and tax (EBIT) of EUR 190.8

million (122.7). Profit after taxes in the first nine months of 2010

increased by 62.2% to EUR 132.7 million (81.8).

Capital expenditure and investments in companies

In the first nine months of 2010, the FUCHS PETROLUB Group made investments

in property, plant and equipment and intangible assets of EUR 21.6 million

(22.1). The key investment focuses here were the purchase of property in

South Africa and the construction of a new facility in India, as well as

construction of a new R&D center and a new sales center in Mannheim. Staff

moved into the sales center in the third quarter, and the facility in India

will be up and running in December of this year.

Employees

As at September 30, 2010, the global workforce of the FUCHS PETROLUB Group

consisted of 3,538 employees, which is 50 more than at the start of the

year (3,488). The new appointments were especially made at the companies in

the regions of Asia-Pacific and South America, which have been enjoying

healthy growth.

Outlook

The Group expects to see a sound business development in the fourth quarter

of 2010. However, the downward trend in the gross margin shows that the

increases in raw material prices are also having an effect.

For the full year, the Group is aiming to generate earnings before interest

and tax (EBIT) of around EUR 240 million with sales revenues of

approximately EUR 1.4 billion. FUCHS therefore expects to achieve the

highest EBIT in the Group’s history in 2010. In light of the sound earnings

position, the Group will generate considerable free cash flow. This in turn

will allow strategically important investments to be financed internally.

Investments in research and development, as well as in growth markets will

continue as scheduled.

Mannheim, November 3, 2010

FUCHS PETROLUB AG

Public Relations

Friesenheimer Str. 17

68169 Mannheim

Germany

Tel.: ++49 (0) 621 3802-1124

The information below can be accessed at the following web addresses:

Press release:

http://www.fuchs-oil.com

Quarterly report for the first nine months of the year and for the third

quarter:

http://www.fuchs-oil.de/qr_ninemonths.html

Press photos:

http://www.fuchs-oil.de/photogallery0.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.

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a company of EquityStory AG.

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Language: English

Company: 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 Hamburg, München, Berlin, Düsseldorf

End of Announcement DGAP News-Service

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