Fuchs SE, the largest independent lubricant manufacturer in the world, reported a reasonable increase in earnings for the first half of 2024, thanks to growth across its operating regions.
The company’s earnings before interest and tax were €218 million in the first six months of the year, up 9% from €200 million in the first half of 2023. Over the same period, sales revenue dipped to €1.76 billion, down 3%. This was due to price adjustments and negative currency movements, the company said in an investor statement.
Sales revenue in Europe, the Middle East and Africa was €1.027 billion, 4% lower year on year, primarily driven by pricing. Currency losses in Eastern Europe and South Africa were offset by higher revenue in the United Kingdom.
In Asia-Pacific, sales were down 1% to €485 million, from €491 million year-on-year, brought about by weaker currencies all across the region.
The Americas saw sales dip to €341 million from €352 million. But earnings were up due to strong growth in specialty lubricants demand and higher earnings in Mexico.
“We have a positive outlook for the second half of the year and are particularly pleased that the acquisition of the Lubcon Group means that new colleagues will support our team in the area of specialty lubricants,” Fuchs’ Chairman and CEO Stephan Fuchs said during an investor presentation.
Meanwhile, EBIT in all three regions was healthy, with the Americas making a 20% jump over 2023. In the U.S., base oil prices were flat during the first quarter followed by two posted price increases in March and April. However, base oil prices have been flat since then, and now face downward pressure because of lower crude oil and feedstock prices.
“The problem for many producers is that demand has not been very strong this year, particularly for finished lubricants,” said Gabriela Wheeler, Lubes’n’Greases’ base oil markets reporter. “It’s been lackluster since last year, and this has impacted base oils and additives as well.”