FUCHS presents preliminary figures for the 2017 financial year: Sales revenues increase to EUR 2.5 billion, earnings at prior-year level

FUCHS presents preliminary figures for the 2017 financial year:
Sales revenues increase to EUR 2.5 billion, earnings at prior-year level
 

• Sales revenues: +9% to EUR 2.5 billion
• Earnings (EBIT): +0.5% to EUR 373 million

The 2017 financial year at a glance

(1) Provisional figures
(2) By company location
(3) Including trainees

Sales revenues and earnings
FUCHS PETROLUB once again grew pleasingly in the 2017 financial year. Group sales revenues increased by 9% or EUR 206 million to a new record of EUR 2.5 billion, which was completely underpinned by organic growth. Company acquisitions, which contributed 1% to the growth in sales revenues, were offset by negative currency translation effects in the same amount.

At EUR 373 million (371), Group earnings before interest and tax (EBIT) were at the previous year's level. Delays in passing on increases in raw material prices and regional changes in the product and customer mix meant that the growth in sales revenues was reflected in EBIT only to a limited extent. Earnings after tax increased to EUR 269 million (260), largely as a result of the US tax reform. Earnings per preference share amounted to EUR 1.94 (1.87).

Sales revenues and earnings by region
FUCHS PETROLUB generated substantial growth in all regions of the world in 2017. Almost all companies in Europe recorded growth, with regional sales revenues increasing by 7% to EUR 1,515 million (1,417). EBIT declined year-on-year to EUR 187 million (196) due to goodwill impairment and margin and mix factors.

The Asia-Pacific, Africa region has continued to develop extremely dynamic in the year. The major companies in China, Australia and South Africa recorded double-digit growth rates in particular due to the increase in sales volumes. Sales revenues in the region rose by 18% or EUR 113 million to EUR 733 million (620). EBIT increased to EUR 134 million (127). This figure was primarily attributable to China, as well as South Africa and Australia.

In 2017, sales revenues in the North and South America region rose by 13% to EUR 393 million (349). The region recorded organic growth of 10%, while external growth due to the acquisitions made in 2016 contributed 5% to the increase in sales revenues. The slightly weaker US dollar meant a moderate reduction in sales revenues reported in euro. EBIT in the region increased to EUR 65 million (62).

Cash flow
As forecasted, capital expenditures reached a new high of EUR 105 million (93) in 2017. Together with the higher capital employed due to a significant increase in intercompany deliveries, this meant that free cash flow before acquisitions decreased compared to the previous year to EUR 142 million (205).

Employees
The FUCHS Group had 5,190 (5,031) employees as of December 31, 2017. The total workforce therefore increased by 159 or 3% year-on-year.

The number of employees in the Asia-Pacific, Africa region rose by 23, while the Europe region added 101 new employees. In North and South America, the number of employees increased by 35 as against December 31, 2016.

Dividends
Pending a corresponding resolution by the Supervisory Board on March 20, 2018, the Executive Board of FUCHS PETROLUB SE intends to propose a dividend of EUR 0.91 per preference share and EUR 0.90 per ordinary share for the financial year 2017 to the Annual General Meeting, which will be held on May 8, 2018. This equates to a 2% increase.

Complete figures and outlook
The figures published are preliminary figures. FUCHS PETROLUB will publish the complete figures for the 2017 financial year and the outlook for 2018 on March 21, 2018.

Mannheim, February 22, 2018

FUCHS PETROLUB SE
Public Relations
Friesenheimer Str. 17
68169 Mannheim
Tel. +49 621 3802-1207
thomas.altmann@fuchs.com
www.fuchs.com/group

The following information is available online:
Image and video material: www.fuchs.com/group/mediagallery

About FUCHS
The FUCHS Group develops, produces and markets high-grade lubricants and related specialties for virtually all industries and areas of application. Formed in Mannheim in 1931, the Group employs more than 5,000 people worldwide at 58 operating companies. FUCHS is the world's largest independent lubricant manufacturer. Its most important markets in terms of sales revenues are Western Europe, Asia and North America.

Important note
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.