Lubricants blender Fuchs Petrolub SE reported a slight decrease in profits on higher sales for the third quarter, citing the impacts of rising raw material prices on its margins.
The company, based in Mannheim, Germany, reported €62 million (U.S. $71.7 million) in earnings after tax for the quarter ending Sept. 30, down 2% from €63 million in the same period last year. Sales revenue for the quarter rose 16% to €718 million, improving from €620 million.
“Rising raw material prices have been significantly squeezing our margins, but our sales price increases are steadily taking effect,” Stefan Fuchs, chairman of the executive board, said in the company’s quarterly earnings statement. “Rising raw material prices, the uncertain supply situation for raw materials and packaging materials, and inflation in our selling prices have been tying up net working capital and hence our free cash flow.”
Revenue for Europe, the Middle East and Africa increased 15% to €426 million, up from €370 million.
In the Asia-Pacific region, revenue was 13% higher at €213 million. The company noted China benefited from high demand in its automotive sector.
Revenue in North and South America jumped 20% to €120 million, up from €100 million. The company attributed part of the increase to recent recovery trends in South America and noted the prior year’s results showed the impact of bad debts in addition to the pandemic.