Business sector undergoes transformation - Fuchs increases earnings in the first quarter, maintaining annual objectives.
Fuchs, a lubricant manufacturer, experienced an uptick in profits this year, despite a 6% decrease in sales compared to the previous year, as a result of fluctuating prices and exchange rates. Stefan Fuchs, the company's CEO, shared this news on Tuesday. Business thrived in all three global regions. Uncertainty still prevails due to disputes between Israel and Iran, as well as the ongoing war in the region, further influencing the economy and commodity prices.
In the initial three months, revenue dipped by 6% year-on-year to reach 877 million euros. The weaker Chinese renminbi and US dollar in particular had a significant negative impact. Isabelle Adelt, CFO, elaborated further that in addition to lower prices, the currency fluctuation significantly contributed to the decrease in turnover. But the company has managed to raise its operating profit (EBIT) by 4% to 107 million euros and its profit after tax by 5% to 77 million euros from the previous year.
The targets set for the current year remain intact. The projected revenue is around 3.6 billion euros. The company expects sales to grow without any changes in prices. The company's managing board expects earnings before interest and taxes to stand at about 430 million euros. Additionally, savings will also play a role in reaching the projected earnings. The Group plans to limit its new employee hire to keep costs down.
The automotive and commercial vehicle industry is crucial to the company, with more than 6300 employees counting on the company. Fuchs Petrolub's revenue largely stems from this sector, making up an estimated 40%. As the industry transitions from traditional internal combustion engines to electric motor vehicles, Fuchs is observing changes as well, although the company continues to serve diverse sectors like mechanical engineering, metal processing, mining, aerospace, agriculture, and forestry.
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Source: www.stern.de
