Mannheim, Germany-based FUCHS PETROLUB SE last week reported that in the financial year 2015 the company generated record sales revenues and earnings. Group sales revenues, at EUR 2,079 (US$2.32) billion, exceeded the EUR 2 billion mark for the first time and are EUR 213 million or 11% higher than in the previous year at EUR 1,866 billion. The growth is driven in particular by acquisitions (+6%) due to the purchase of Pentosin and Statoil Fuel & Retail Lubricants and is reinforced by positive currency translation effects (+5%). Organic sales growth was 0.3%.

At EUR 342 million (compared to EUR 313 million the previous year), the Group not only recorded its best ever earnings before interest and tax (EBIT) in the financial year 2015, but at EUR 236 million (compared to EUR 220 million the previous year) also the highest earnings after tax in the company's history.

It was possible to finance the acquisitions entirely from free cash flow. Free cash flow was EUR 62 million (compared to EUR 188 million the previous year).

FUCHS PETROLUB recorded growth in all three global regions. Europe grew by 10% largely as a result of acquisitions and showed the strongest organic growth.The companies in this region contributed 57% of Group sales revenues. Growth recorded by the other regions was primarily due to currency translation effects as a result of the weak euro. Asia-Pacific, Africa recorded growth of 13% and North and South America grew by 12%.

At EUR 162 million, the EBIT for Europe remained at the previous year's level. The newly acquired companies impacted the EBIT through integration costs of EUR 6 million in the reporting year. Asia-Pacific, Africa increased its EBIT by 16% to EUR 122 million. Alongside positive exchange rates, China in particular contributed to this growth. North and South America generated an EBIT of EUR 65 million. The increase of EUR 13 million is due to currency effects.

A total of EUR 50 million (compared to EUR 53 million the previous year) were invested during the reporting period, primarily at locations in Germany, the US and Australia. The focus of capital expenditure was on expanding and modernizing existing facilities.

In Germany, investments were in particular made in a new test field, tank storage facilities, laboratories, as well as the roll-out of SAP software at a subsidiary. In the USA, the modernization of the Harvey site near Chicago was continued and construction of a specialty grease factory commenced. In Australia, the purchase of land in Newcastle means that construction of the new facility can now go ahead.

FUCHS PETROLUB employed 4,823 employees (compared to 4,112 the previous year) as at December 31, 2015. The total workforce therefore increased by 711 persons or 17% year-on-year, of which 649 are attributable to acquisitions in Germany (145), Scandinavia, Central and Eastern Europe (478) and Brazil (26).

The number of employees in Asia-Pacific, Africa increased by two, while Europe added 663 (26%) new employees. In North and South America, the number of employees increased by 46 (9%) compared to December 31, 2014.

FUCHS PETROLUB anticipates further increases to both sales revenues and earnings for the financial year 2016. The Group expects sales revenues to grow in the range of 7% to 11% before currency effects. Acquisitions made in 2015 will make a key contribution to this. The Group anticipates an EBIT growth of between 3% and 7%. Free cash flow before acquisitions of EUR 170 to 200 million is expected due to the increased investment activities in 2016.