Fuchs Petrolub AG reported that its sales for the first nine months of 2001 increased 5.6 percent from last year, despite a decrease in global lubricant demand.
Net sales for the period ended Sept. 30 were Euro 710.6 million (U.S. $633.3 million). Although that marked an improvement from the previous year, net income fell 16.1 percent, to Euro 12.5 million, due to higher financing costs and non-recurring expenses.
The Mannheim, Germany-based global lube producer noted that October sales rebounded from a sharp drop in September but warned that economic uncertainties make future performance difficult to predict. The company predicts that worldwide lube consumption will drop 3 to 4 percent this year. According to its calculations, U.S. demand from January through July was down 7.5 percent from the same period last year. Western Europe was off by 3.9 percent through June.
Almost all countries of the world recorded a progressive economic downturn in the first nine months of the year along with a clear decline in lubricants demand, Executive Board Chairman Manfred Fuchs said. The terror attacks of Sept. 11 made things worse.
Although its subsidiaries completed two small acquisitions this year, Fuchs reported that its sales growth was mostly internal. Sales grew moderately in Western Europe and the United States but swelled by 25 percent in Central and Eastern Europe and by60 percent in China.
Excluding non-recurring items, such as costs associated with shutting down a Netherlands distributorship, and higher financing costs stemming from the acquisitions, operating profits dropped 0.7 percent, to Euro 45 million.
Officials said they were pleased with this performance, given the fall-off in demand industry-wide.Theyadded, however, that they were encouraged that Fuchs’own sales increased from September to October.