Seemingly shielded from the storms that have roiled the lubricant industry, Fuchs Petrolub AG said last week that its profits jumped approximately 50 percent in 2005. The Mannheim, Germany, company is the worlds largest independent lube company.
Fuchs reported Thursday that preliminary data showed it raking in after-tax earnings of 74.2 million (U.S. $88.2 million) in 2005, up from 48.7 million in 2004. Last years bottom line benefited from a 6.4 million profit from a land sale. Even without that one-time boost, though, earnings from continuing operations grew at a 39 percent clip.
Sales revenue rose 8.7 percent to 1.2 billion, or U.S. $1.4 billion. Ashland Inc.s Valvoline, the next-largest lubricant manufacturer without internal base oil supply, had revenue of $1.3 billion in its most recent fiscal year, which ended Sept. 30.
Fuchs achieved its 2005 results in the face of significant challenges, including steep increases in raw material prices and other costs, along with a tightening of base oil availability. The company attributed its success to strict internal management of costs and to favorable development of industrial markets. Fuchs supplies automotive lubricants, but it focuses on the industrial segment more than most other large lube companies. Management said all regions contributed to the companys improved performance.
The company emphasized that the data reported last week are still preliminary and that it will issue its formal report early next month.