February 22, 2017
Volume 17 Issue 52
Strong Year for Fuchs, Cosan
Fuchs Petrolub SE and Cosan’s lubricant production and distribution arm – renamed Moove last year – reported increased profits and sales for 2016.
Mannheim, Germany-based Fuchs reported €260 million (U.S. $274.2 million) in profit after tax for 2016, a 10.1 percent increase from the previous year, according to provisional figures issued Feb. 16.
Fuchs reported €2.3 billion in sales revenue for 2016, a 9 percent increase. Sales in Europe increased 15.5 percent to €1.4 billion. The independent lubricants blender enjoyed a more modest increase of revenue in the Asia-Pacific and Africa region, where revenue hopped to €620 million, up 6.3 percent. In North and South America, however, Fuchs took a minor sales hit, dropping 1.2 percent to €349 million, from €353 million in 2015. Fuchs noted that 9 percent of the growth in sales revenue can be attributed to acquisitions.
Moove’s net revenue declined 2.5 percent to 452 million Brazilian reais ($145.7 million) in the fourth quarter, which Cosan attribute in its earnings news release to a lower exchange rate. For the full year, the company reported a 7.5 percent increase in net revenue to 1.9 billion reais.
Though Brazil’s overall lubricants sales volume increased 3.4 percent in the fourth quarter, Moove’s sales volume flourished, growing 6.3 percent to 81,000 cubic meters, which the company said reflected the strategy of increasing its customer base and market share among automakers in Brazil. In 2016 Brazil’s lubricant market saw a 5.2 decrease in sales volume, Cosan said, but Moove enjoyed a 3.9 percent increase, placing its sales volume at 329,000 cubic meters.
Sao Paulo, Brazil-based Cosan, a producer of sugar and ethanol products since 1936, expanded through acquisitions beginning in 2008 to become a distributor of fuels and lubricants.
Novvi, a joint venture between Cosan and U.S. research firm Amyris, develops renewable synthetic base oil from sugarcane.