FUCHS generates growth in sales revenues and earnings – earnings outlook for the whole year adjusted

“FUCHS PETROLUB grows encouraging in all regions of the world, particularly in China and the US. The future-oriented investments, this year focusing on Germany and Australia, are making progress. As a result of rising raw material costs, the strong euro and planned cost increases, growth in earnings is disproportionately. The free cash flow reflects our growth strategy,” says Stefan Fuchs, Chairman of the Executive Board of FUCHS PETROLUB SE.

– Sales revenues: +9% to EUR 1.9 billion
– Earnings (EBIT): +2% to EUR 281 million
– Earnings outlook adjusted

Sales revenues and earnings
In the first nine months of 2017, FUCHS PETROLUB significantly increased its sales revenues by 9% to EUR 1,862 million (1,703), mainly due to higher volumes. The Group generated organic growth of 8%, particularly in the regions Asia-Pacific, Africa and North and South America. External growth as a result of the two acquisitions made in 2016 amounted to 1%.

EBIT rose by a total of 2% to EUR 281 million (276) and earnings after tax increased by 3% to EUR 198 million (191). Earnings per ordinary share and per preference share increased to EUR 1.42 (1.37) and EUR 1.43 (1.38) respectively.

Free cash flow before acquisitions was down year-on-year at EUR 89 million (145). This development was mainly due to the higher amount of funds tied up in working capital due to increased business volumes.

Sales revenues and earnings in the regions
Organic growth was recorded throughout almost all of Europe. Sales revenues increased by 6% to EUR 1,142 million (1,080). The Asia-Pacific, Africa region posted the strongest growth at 21%. It generated EUR 544 million (451). Strong organic growth in sales revenues was achieved in China. Australia and South Africa also posted significant growth. The North and South America region also generated strong organic growth (+9%), particularly in North America. Last year’s acquisitions in the US contributed to the external growth of 6%. In addition, there was a positive currency contribution of 1% from the Brazilian real. Overall, the region has grown by 16% to EUR 302 million (260).

As a result of the rising raw material costs and the time lag before they are passed on, combined with the strong euro and planned cost increases, EBIT grew at a slower rate than sales revenues. In Europe, EBIT declined by 2% to EUR 146 million (149). EBIT in Asia-Pacific, Africa rose by 9% to EUR 98 million (90), while in North and South America it increased by 6% to EUR 50 million (47).