Fuchs Petrolub AG recently reported that its profit leaped 31 percent in 2006, fueled by a hefty increase in sales revenue. The Mannheim, Germany, company is the worlds largest independent lube company.
Fuchs said its net profit reached 97.2 million (U.S. $129.4 million), up from 74.2 million (U.S. $88.2 million) in 2005.
Sales revenue rose for the year 11 percent to 1.3 billion (U.S. $1.7 billion). Ashland Inc.s Valvoline, the next-largest lubricant manufacturer without internal base oil supply, posted revenue of $1.4 billion in its most recent fiscal year, which ended Sept. 30.
Fuchs said it expects continued growth in sales revenues in 2007, but does not expect them to reach the high inflation-induced growth rates of previous years. The company attributed part of its success to strong development of cash flow.
The companys executive board said that because of the strong balance sheet, it will recommend a dividend of 1 (U.S. $1.33) per preference share and 0.94 (U.S. $1.25) per ordinary share for the financial year 2006, a 44 percent increase over the previous years dividend.
The company emphasized that the data reported in late February is preliminary and that it will issue its formal report on May 23.