Fuchs SE’s reported a 9% increase in profits for the first half of 2024 despite a 3% drop in sales revenue that it blamed mostly on exchange rate fluctuation.
The world’s biggest independent lubricant manufacturer posted earnings before interest and tax of €218 million for the first six months, an improvement from €200 million in the same period of 2023.
Sales revenue fell from €1.822 billion to €1.764 billion. Of that €58 million decrease, the company attributed €35 million to the euro’s escalation against foreign currencies where sales took place and €23 million to organic growth resulting mostly from price adjustments.
Profits rose in all three of the company’s geographical segments. In Europe, Middle East and Africa, which accounts for more than half of sales and nearly half of profits, earnings before interest and taxes climbed 13% to €109 million. In Asia-Pacific the figure rose 6% to €55 million, while it jumped 21% to €47 million in the Americas.
Sales revenue dipped 1% in EMEA to €1.027 billion, 1% in Asia-Pacific to €485 million and 11% to €341 million in the Americas. The company, which is headquartered in Mannheim, Germany, said price adjustments caused a decrease in revenue in EMEA but smaller increases in Asia-Pacific and the Americas.
Officials said they expect similar improvement in performance in the second half of the year. While noting uncertainties related to economic development and raw material costs, they pointed to the International Monetary Fund’s forecast that the global economy will grow 3.2% this year.