Fuchs SE reported a modest recovery in its third quarter, with sales of €896 million, down 1% on a reported basis but “organic” growth rose by 1.9% driven by Asia-Pacific and the Americas and supported by acquisitions.
Asia-Pacific reported 3% sales growth and 17% EBIT growth despite a €31 million currency drag. The Americas recorded 2% sales growth helped by the Peru distributor and IRMCO acquisitions while EBIT decreased about 20% after a €21 million currency impact.
Overall, EBIT reached €117 million, up 0.9% from a year earlier and above consensus expectations. Net income was €84 million, also ahead of forecasts and free cash flow after acquisitions reached €100 million.
Regionally, EMEA posted slight revenue gains partly due to the acquisitions of Lubcon, Strub and Boss though organic sales weakened in key markets. The company continued to face pressure in Europe, particularly in Germany’s automotive sector, and recorded negative currency effects of €51 million.
For the first nine months, Fuchs generated €2.7 billion in sales, up 1% from a year earlier while EBIT slipped 2% to €326 million, lowering the margin to 12.1%. Earnings after tax fell to €228 million and free cash flow before acquisitions declined 7% to €181 million.