February 27, 2018
Volume 3 Issue 3
Strong Year for Fuchs, Nynas
Mannheim, Germany-based Fuchs posted €269 million (U.S. $330.9 million) in earnings after tax for 2017, a 3.5 percent increase from 2016, according to provisional figures released Feb. 22.
Fuchs reported almost €2.5 billion in sales revenue for 2017, a 9.1 percent increase.
Sales in Europe rose 7 percent to €1.5 billion. In Asia-Pacific, the company’s sales revenue jumped 18 percent to €733 million. “The major companies in China, Australia and South Africa recorded double-digit growth rates, in particular due to the increase in sales volumes,” the independent lubricants blender noted in its provisional earnings news release. In North and South America, sales revenues rose 13 percent to €393 million. Acquisitions made in 2016 contributed 5 percent to the increase in 2017 sales revenues in that region.
Nynas’ naphthenic business unit, which supplies mostly base oils, reported earnings before interest, taxes, depreciation and amortization of 318 million Swedish krona (U.S. $38.9 million) for the quarter ending Dec. 31, much improved from a loss of 10 million krona EBITDA in the same period in 2016. For full year 2017, the business unit’s EBITDA reached 807 million krona, up 59.5 percent from 506 million krona.
External sales for Nynas’ naphthenic business unit edged up to almost 2 billion krona in the fourth quarter, up 0.6 percent. This figure was affected by the weaker U.S. dollar, but helped by slightly higher sales volumes and increased margins, the company said. For full year 2017, the business unit’s external sales increased to almost 7.7 billion krona, up 13.9 percent from 6.8 billion krona in 2016. Stockholm, Sweden-based Nynas attributed the full year sales improvement to higher oil prices and increased sales volume, despite the negative impact of the weaker U.S. dollar.
In the interim report, Nynas explained that currency impact in the fourth quarter was negative mainly due to an 8 percent weaker U.S. dollar and a 2 percent weaker British pound versus the Swedish krona, compared to 2016, while the euro was unchanged. “Nynas’ margin was impacted by the exchange rate for the U.S. dollar when translated into Swedish krona, in particular for naphthenics,” the company said.
Referring to combined results, President and CEO Gert Wendroth said in the company’s interim report that the fourth quarter showed a good recovery of the business with strong sales in all segments up 5 percent compared to the previous year’s quarter. “Naphthenics in particular had a strong quarter with good sales and improved margins despite various supply problems,” Wendroth stated.