Independent lubricants blender Fuchs SE reported a 6% increase in first-quarter net profit and a 6% decline in sales revenue, attributed to price adjustments and currency effects.
Based in Mannheim, Germany, Fuchs reported earnings after tax of €77 million (U.S. $83 million) for the quarter ended March 31, improving from €73 million in the same period last year.
The company’s sales revenues decreased to €877 million, comparted to €936 million, which was attributed to price and currency effects. In its quarterly financial statement, Fuchs said price adjustments caused organic sales revenues to fall by 3% or €33 million in the quarter. Negative currency effects, primarily from the regions Asia-Pacific, and North and South America, totaled $26 million.
In the Europe, Middle East and Africa region, the company’s sales declined 7% to €511 million, compared to €552 million. Price adjustments in almost all companies resulted in organic sales revenues decline of 7%. Negative currency effects from South Africa and Eastern Europe were largely offset by positive currency effects from the United Kingdom.
In Asia-Pacific, sales decreased 3% to €245 million, due to high negative exchange rate effects. The company cited organic growth of 3% due to good business development, including in China, which continues to recover, and in India, which also reported pleasing year-on-year growth. Currencies were weaker in particular due to Chinese renminbi and Australian dollar, Fuchs noted. Negative exchange rate effects burdened the regions sales figures by €14 million.
In North and South America, sales fell 8% to €167 million, compared to €181 million. Price adjustments and restrained business developments affected sales revenues in North America, the company noted. Sales revenues in South America were below the previous year, Fuchs said, mainly due to the difficult macroeconomic situation in Argentina, Strong negative currency effects were mainly from Argentina, but also from North America, due to the weakening of the U.S. dollar.