Fuchs Petrolub AG announced Monday that its profit through the first nine months of 2004 was up 31.7 percent from the same period of last year, thanks to wide-ranging growth and focus on specialty products.
The Mannheim, Germany, company – the worlds largest independent lubricant blender – said sales revenues for the first three quarters of the year rose 5.8 percent to 831 million (U.S. $1.1 billion). The growth extended to every major geographical region. Sales climbed 5.6 percent to 554 million in Europe, 3.2 percent to 150 million in North and South America and 12.2 percent to 145 million in Asia-Pacific and Africa. Management did not provide data for individual countries but reported that growth was strongest in the United States, China and Australia.
While revenues are up, costs are, too. Fuchs noted that it is paying significantly higher prices not only for base oils, but also for additives, packaging materials, energy and transportation. The company said it is currently in price negotiations across the globe to counteract these burdens.
On the other hand, management said it was pleased to have held down increases in expenses for selling, administrative and research activities, allowing the companys operating profit to grow 11.6 percent to 78.9 million, vs. the first nine months of 2003. Net profit increased to 29.9 million, from 22.7 millionpreviously.
Management said net profits are unlikely to continue that pace of growth in the fourth quarter because performance was strong in the fourth quarter of 2003. Still, it predicted the current year will end with a double-digit improvement over last year.