Independent lubricants blender Fuchs Petrolub SE reported a 13% increase in net profit and higher sales in the third quarter. The company’s sales were up in all regions, including by more than 50% in North and South America.
Based in Mannheim, Germany, Fuchs reported profit after tax of €70 million (U.S. $69 million) for the quarter ended Sept. 30, compared to €62 million in the same period last year.
Sales revenue after consolidation costs increased 26% to €902 million in the third quarter, compared to €718 million.
Among regions, sales in Europe, the Middle East and Africa rose 23% to €524 million. Asia-Pacific sales increased 18% to €252 million. North and South America showed the largest year-on-year growth at 52%, reaching €182 million.
In its earnings presentation on nine-month results, the company noted that organic sales experienced above-average growth especially in South Africa, Britain and Sweden. Organic sales growth in India, Southeast Asia and Australia have compensated for declines in organic sales in China, which is affected by a difficult economic environment and the continued Zero-COVID strategy. Organic sales growth in North and South America was largely price-driven, the company noted. Organic sales are generated from a company’s existing operations rather than acquired operations.
The company continued to face a persistently challenging environment, with raw material costs continuing to rise, the zero-COVID strategy in China still consistently implemented, increasing inflation and recurring bottlenecks in its supply chains, Stefan Fuchs, chairman of Fuchs Petrolub’s executive board, said in the company’s earnings news release on results for the first nine months of this year. The significant increases in raw material costs were offset by price increases, he noted.