DGAP-News: FUCHS successfully completes challenging year 2021
DGAP-News: FUCHS PETROLUB SE
/ Key word(s): Annual Results/Annual Results
FUCHS successfully completes challenging year 2021
(1) By company location In what was once again a challenging environment, FUCHS generated sales revenues of EUR 2.9 billion in 2021. This meant that we did not only achieve an increase of 21% compared with a pandemic-dominated 2020, we also exceeded the level of the pre-crisis year of 2019 by 12%. We improved our EBIT by EUR 50 million to EUR 363 million. We thus exceeded our original forecast for 2021 and also the result from 2019. Steep increases in raw material prices tied up a lot of funds and thus led to a free cash flow before acquisitions of EUR 90 million. The past year was marked by disruptions affecting our procurement markets. Extreme cold weather in Texas at the beginning of the year and the impact of the Covid-19 pandemic upset global supply chains. An unprecedented shortage of raw materials and packaging materials, as well as sharply rising purchase prices, were the consequences, which resulted in new challenges for our team on a daily basis. In addition, a continuing shortage of semiconductors had a negative impact in particular on our automotive customers worldwide. On top of this, towards the end of the year the Omicron variant and quarantine regulations put parts of our workforce out of action. When seen against the backdrop of all these adversities, the gains in sales revenues and earnings achieved are gratifying. Business development in the regions The Asia-Pacific region improved its sales revenues year-on-year by EUR 157 million, or 22%, posting EUR 855 million. The main driver here was China, making a major contribution to the increases. In terms of exchange rates, the price increases on the purchasing side were lower than in the other regions. EBIT improved by 22%, or EUR 22 million, rising to EUR 122 million. The North and South American region was particularly affected by the Covid-19 pandemic in 2020 and recorded declines in sales revenues, despite strong external growth. In the reporting year 2021, these declines were offset and sales revenues increased to EUR 471 million, an increase of 22% or EUR 84 million compared to the previous year. Sales revenues were affected by currency translation losses. With a rise of 43% compared to 2020, the increase in earnings to EUR 60 million was particularly pronounced. Also contributing here was the pleasing development of specialty manufacturer Nye, which was acquired in the previous year. Investments reduced as planned Forecast 2022 before impact of Russia-Ukraine war: Sales revenues and EBIT with range Stefan Fuchs, Chairman of the Executive Board at FUCHS: "We are shocked by the events in Ukraine these days. Our first concern is for the Ukrainian population and in particular our 55 Ukrainian colleagues. We condemn the Russian invasion into the Ukraine. The direct economic impact of the war in the Ukraine and the sanctions against Russia on our Ukrainian and our Russian subsidiary as well as their indirect effects on the rest of the world cannot yet be estimated." Subject to the not yet assessable impact from the war in Ukraine and the sanctions imposed against Russia, the FUCHS Group currently anticipates organic growth in sales revenues of EUR 3.0 billion to EUR 3.3 billion for 2022. This growth is forecasted mainly based on a further rise in business volume, but also taking account of further increases in sales prices. As a result, FUCHS expects an EBIT of between EUR 360 million and EUR 390 million. This will be facilitated through continued rigorous cost management and a sharp limitation on new hires. At the same time, however, we have to bear inflation-related increases in costs, particularly relating to staff and freight, and we face a continuing volatile environment on the raw materials front, particularly in terms of their availability and possible price increases. Further milestones achieved with FUCHS2025 Regarding culture, numerous initiatives and the latest means of communication have allowed us to continue growing together as a global team despite limited travel possibilities and we have further developed our positive FUCHS culture. Structurally, we have strengthened our automotive aftermarket business, and, with additional business segment managers, further solidified our market segmentation as well as our consistent focus on specific customer groups. On the strategic side, we have in particular looked at how to address the profound disruptive changes that characterize the times we are in and how to capitalize the three megatrends mobility transformation, digitalization and sustainability as an opportunity for our further development. Mannheim, March 18, 2022
The following information can be found on the Internet: Important note
18.03.2022 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: | DE000A3E5D64, DE000A3E5D56 |
WKN: | A3E5D6, A3E5D5 |
Indices: | MDAX |
Listed: | Regulated Market in Frankfurt (Prime Standard), Stuttgart; Regulated Unofficial Market in Berlin, Dusseldorf, Hamburg, Munich, Tradegate Exchange |
EQS News ID: | 1305911 |
End of News | DGAP News Service |
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1305911 18.03.2022
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