BERLIN (dpa-AFX) - Fuchs Petrolub AG (FUPEF.PK), engaged in the lubricant business, said that it expects further organic sales revenues and earnings growth in the 2018 financial year. The anticipated increase in sales revenues from 3% to 6% is based largely on organic volume growth combined with changes in the price and product mix. The strongest growth in relative terms is expected to be in Asia-Pacific, Africa. FUCHS again expects EBIT to grow at a below-average rate, and expectations are in the range of 2% to 4%.
Furthermore, investments of around 140 million euros are planned. Key areas will be the new plant and expansions at the existing locations in China. Furthermore, plant expansions and modernization activities are planned in the US, Germany, Sweden, Russia and the UK. Therefore, FUCHS expects free cash flow before acquisitions at the previous year's figure of 142 million euros.
The company confirmed provisional figures for the 2017 financial year.
Earnings after tax for the financial year 2017 increased to 269 million euros from last year's 260 million euros, largely as a result of the US tax reform. Earnings per share amounted to 1.93 euros, compared to 1.86 euros last year.
Group earnings before interest and tax or EBIT were 373 million euros compared to 371 million euros in the prior year. Delays in passing on increases in raw material prices and regional changes in the product and customer mix meant that thegrowth in sales revenues was reflected in EBIT only to a limited extent.
Group sales revenues increased 9.1% to 2.47 billion euros, from last year.
Copyright RTT News/dpa-AFX