FUCHS SE reports strong first-half results amid global shifts

FUCHS SE, a global lubricant manufacturer based in Mannheim, Germany, has reported a successful first half of 2023, with a significant EBIT (earnings before interest and taxes) increase of 11% to EUR200 million (USD219 million). 

The company’s CEO, Stefan Fuchs, attributes this growth to the strong performance in Europe, Middle East, Africa (EMEA), with many countries contributing to positive results. Despite the challenges posed by the sharp rise in raw material costs and availability problems over the past two years, FUCHS SE managed to turn this situation into a positive one, achieving a total free cash flow before acquisitions of EUR164 million (USD179 million). As a result, the company is raising its forecast for free cash flow before acquisitions to around EUR300 million (USD329 million). Fuchs expressed confidence in the company’s future, particularly in the area of digitization.

The company’s growth was particularly noticeable in the Europe, Middle East, Africa (EMEA) region, and North and South America. In the EMEA region, the company’s revenue increased by 8% to EUR1.067 billion (USD1.17 billion), and EBIT rose by 18% to EUR99 million (USD108 million). This growth was contributed by several countries, with a particularly positive development in Sweden.

In the Asia-Pacific region, despite significant currency losses, the company was able to increase its revenue by 8% to EUR491 million (USD538 million) due to price adjustments. However, the EBIT saw a slight decrease to EUR52 million (USD57 million) due to a cautious economic recovery in China.

North and South America saw the highest sales growth of 17% to EUR352 million (USD386 million). The entire region benefited from price adjustments and a positive business development. The EBIT increased by 11% to EUR39 million (USD42 million), driven by positive business development in the U.S.A. and Brazil, despite slight negative currency effects.

FUCHS SE continues to operate in a highly volatile environment, with uncertainties regarding economic development and raw material and sales prices. However, the company’s global positioning and solid financial base remain robust. FUCHS SE remains focused on profitable growth and the implementation of FUCHS2025, the company’s corporate strategy which is built on six strategic pillars.

Founded in 1931 as a family business in Mannheim, FUCHS is now the world’s largest independent supplier of lubricants, covering almost every industry and application. Today, the company has 6,100 employees in more than 50 countries.