November 5, 2019
Volume 3 Issue 3
Profits Down for Fuchs, Up for BP Lubes
Independent lubricants blender Fuchs Petrolub SE reported a decrease in profits and an increase in sales, while BP’s lubricants business posted an increase in profit for the third quarter compared to 2018’s third quarter.
Fuchs Petrolub SE reported €64 million (U.S. $71.3 million) in earnings after tax for the third quarter, down 19 percent from €79 million in 2018’s third quarter.
Sales revenue increased 2.2 percent to €656 million, up from €642 million.
Sales revenue slid 1 percent to €402 million in the Europe, Middle East and Africa region. “Compared to the first half of the year, the decline in sales revenues slowed slightly in the third quarter,” the company said in its earnings news release. “However, Germany in particular continues to suffer due to the ongoing weakness of the global automotive market.”
The Mannheim, Germany-based company’s revenues increased 4 percent in Asia-Pacific to €180 million in the third quarter. “The decline in sales revenues in China slowed in the third quarter compared to the previous year,” Fuchs stated. “However, the automotive crisis had already affected China in the fall of the previous year, resulting in declining sales revenues.”
The company’s revenues in North and South America rose 3 percent to €108 million for the third quarter.
London-based BP’s lubricants business reported an underlying replacement cost profit before interest and tax of $332 million for the third quarter, up 2.5 percent from $324 million in the same quarter last year.
Replacement cost profit or loss reflects the replacement cost of inventories sold in the period and is arrived at by excluding inventory holding gains and losses from profit or loss, according to BP’s stock exchange announcement.