DGAP-News: FUCHS achieves slightly lower sales revenues in the first quarter of 2020 - solid financial basis forms a foundation for further development
DGAP-News: FUCHS PETROLUB SE
/ Key word(s): Quarterly / Interim Statement
FUCHS achieves slightly lower sales revenues in the first quarter of 2020 - solid financial basis forms a foundation for further development We are expecting a significant drop in sales revenues and earnings in the second quarter, which will probably continue in the second half of the year, although hopefully at a slower pace. FUCHS is well-positioned to respond to the crisis and has a solid financial basis. The stability and structure of our balance sheet form a solid foundation for the further development. There is a positive effect from the low proportion of fixed costs and the high proportion of raw materials, which gives us breathing room regarding sales revenues. In addition, FUCHS is once again benefiting from its global presence and broad-based product portfolio. For example, we are seeing signs of recovery after the sharp downturn in China in the first quarter, which is helping to mitigate declines in other regions." Stefan Fuchs, Chairman of the Executive Board of FUCHS PETROLUB SE - Sales revenues: -4% to EUR 616 million - Earnings (EBIT) down 6% to EUR 72 million - COVID-19: Impact still comparatively small in Q1 - Significant uncertainty regarding statements on future development: FUCHS at a glance
1 By company location. Sales revenues and earnings The income statement for the first three months of the year is influenced by the positive upward trend in the gross margin from the previous year, with gross profit increasing slightly despite the decline in sales revenues related to COVID-19. EBIT was down 6% year-on-year at EUR 72 million (77). Earnings after tax declined by 7% to EUR 51 million (55). Earnings per ordinary share were EUR 0.36 (0.39), and earnings per preference share were EUR 0.37 (0.39). Free cash flow before acquisitions was significantly lower than in the previous year at EUR -4 million (13). This was not only due to an increase in net operating working capital, but also to the high level of investment in non-current assets of EUR 31 million (34). There was positive EBIT growth in the region EMEA due to high internal deliveries from Germany to China at the start of the year and significant earnings increases in Poland. In addition to a significant slump in business in China in February in the region Asia-Pacific, EBIT is also being impacted by declining sales revenues in the automotive and mining industries in the region North and South America and by bad debt losses in North America. In the region EMEA, EBIT rose by 13% to EUR 43 million (38). The Asia-Pacific region's EBIT decreased by 19% to EUR 17 million (21) and the EBIT of the region North and South America by 14% to EUR 12 million (14). Outlook As a consequence of the COVID-19-pandemic, FUCHS also will be unable to meet its expectations for the full year as published in March. The difficult market environment is set to deteriorate in the second quarter of the year, in which we are expecting a significant drop in earnings in the order of 50%. This represents a significant decline in earnings of around 30% year-on-year for the first half of the year. This statement is subject to great uncertainty. The effects of the crisis on supply chains, production and customer demand cannot currently be reliably estimated. A further or prolonged decline in demand due to the recession could have a negative impact on FUCHS' economic development. Our solid capital and balance sheet structure is the basis for an appropriate liquidity position. Enough precautions have been taken to maintain liquidity, even after dividend payments. Further forecasts for the rest of the year are not possible under the current circumstances. Mannheim, April 30, 2020 FUCHS PETROLUB SE The following information is available online: Important note
30.04.2020 Dissemination of a Corporate News, transmitted by DGAP - a service of EQS Group AG. |
Language: | English |
Company: | FUCHS PETROLUB SE |
Friesenheimer Str. 17 | |
68169 Mannheim | |
Germany | |
Phone: | +49 (0)621 / 3802-0 |
Fax: | +49 (0)621 / 3802-7190 |
E-mail: | [email protected] |
Internet: | www.fuchs.com/gruppe |
ISIN: | DE0005790430, DE0005790406 |
WKN: | 579043, 579040 |
Indices: | MDAX |
Listed: | Regulated Market in Frankfurt (Prime Standard), Stuttgart; Regulated Unofficial Market in Berlin, Dusseldorf, Hamburg, Munich, Tradegate Exchange |
EQS News ID: | 1033217 |
End of News | DGAP News Service |
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1033217 30.04.2020
Fuchs Petrolub SE ST Stock
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