BERLIN (dpa-AFX) - Fuchs Petrolub AG (FUPEF.PK), engaged in the lubricant business, reported that its earnings after tax for the first nine months of 2017 increased 3% to 198 million euros from 191 million euros in the previous year. Earnings per ordinary share grew to 1.42 euros from 1.37 euros last year.
EBIT rose 2% to 281 million euros from 276 million euros in the prior year.
Sales revenues for the period rose 9% to 1.862 billion euros from last year's 1.703 billion euros, mainly due to higher volumes. The Group generated organic growth of 8%, particularly in the regions Asia-Pacific, Africa and North and South America. External growth as a result of the two acquisitions made in 2016 amounted to 1%.
The business performance in the first nine months was good and the FUCHS Group expects the strong growth in sales revenues to continue. So far, increases in raw material prices have not been passed on as quickly as expected and it will probably not be possible to compensate for those effects during this year, the company said.
In connection with the strong growth in Asia-Pacific, Africa, inventories increased significantly in the third quarter and this is likely to continue in the following months. The investments in new plants and plant expansions will also be continued.
In this context, the Group confirmed its outlook of sales revenues to grow by 7 to 10% for the year 2017. However, it expects EBIT to be just under or on a par with the previous year's 371 million euros. Free cash flow before acquisitions will probably not exceed 150 million euros.
Copyright RTT News/dpa-AFX