Fuchs Group issued a preliminary report yesterday showing a 7% decline in sales revenue for 2020 and a bit smaller decline in earnings before interest and tax – better than the independent lubricant marketer said it expected for a difficult year.
Preliminary 2020 sales for Fuchs amounted to almost €2.4 billion (U.S. $2.9 million), down from €2.6 billion for 2019. The company attributed that to fourth quarter sales that were significantly above what the company expected when the quarter began, particularly after a strong December.
Likewise, the company said operating business in the fourth quarter also exceeded initial expectations. In its third quarter earnings release in November 2020, Fuchs’ outlook for the 2020 financial year had projected a decline of 15% for its earnings before interest and tax. At the time, the company noted that the effects of the global COVID-19 pandemic crisis on supply chains, production and customer demand could not be reliably estimated.
Earnings before interest and tax in 2019 amounted to €321 million.
The company’s complete reporting for the 2020 financial year will be published on March 9.