Valvoline

Valvoline Inc. last Tuesday reported financial results for the second fiscal quarter ended March 31, 2017. Valvoline said the results were driven by growth in premium product mix, strong sales in VIOC and continued volume gains in international markets.

Valvoline posted operating income of $117 million for its three operating segments – North America ($57 million), quick lubes ($31 million) and international ($18 million) – for its fiscal second quarter ended March 31, up 12.5 percent from $104 million in the year-earlier period. "Unallocated and other" operating income was $11 million.

Volume growth and favorable mix were partially offset by cost increases announced during the quarter, resulting in gross profit growth of 3 percent to $198 million. Valvoline announced price increases to offset the higher raw material costs, reflecting the company's disciplined approach to margin management. EBITDA from operating segments was flat with the prior year, at $115 million, as the growth in gross profit was offset by planned increases in SG&A.

The three segments posted total sales of $514 million for the quarter, up 7 percent from a year before. The core North America segment accounted for $253 million, quick lubes for $128 million and international for $133 million.

North American lubricant sales volume declined 5 percent to 24.6 million gallons, compared to a year earlier. Lubricant sales through the company’s quick lubes grew 14.6 percent to 5.5 million gallons. International sales volume amounted to 14.9 million gallons, 24.0 million gallons including unconsolidated joint ventures.

In September 2015, Ashland announced plans to spin off Valvoline. In September last year, an initial public offering raised about $759 million. After the completion of the IPO, Ashland owned 170 million shares, representing 83 percent of total outstanding shares of Valvoline’s common stock. Prior to the IPO, Ashland held nearly all of the assets and liabilities related to Valvoline’s current business.

This past Tuesday, Valvoline provided an update on its final separation from Ashland, announcing that the board of directors of Ashland Global Holdings Inc. approved the distribution of all of its remaining interest in Valvoline to Ashland stockholders, subject to various conditions. For more information on this, please refer to the link "Valvoline Inc. Provides Update on Final Separation from Ashland Global Holdings Inc." under Other Headlines near the bottom of our main page.

FUCHS PETROLUB

In the first three months of 2017, FUCHS PETROLUB increased its sales revenues by 12% to EUR 618 million (compared with EUR 550 million in the 2016 quarter). The Group's organic growth amounted to 9%. All regions contributed to this growth, in particular Asia-Pacific, Africa. The company's acquisitions in 2016 in North America made a contribution of one percentage point to increased sales revenues, while positive currency effects had an impact of +2%.

Sales revenues in the Europe region increased by 5% to EUR 368 million (compared with EUR 349 million). The region's organic growth amounted to +5%, and was particularly notable in Germany and the UK. The Asia-Pacific, Africa region posted very strong organic growth (+21%). Especially in China a strong growth in sales revenues was recorded, but also in Australia and South Africa. Overall, the region's sales revenues increased by 25% to EUR 181 million (compared with EUR 144 million). The North and South America region generated organic growth of 9%, and was supported by the economic recovery in Brazil and North America. Taking into account external growth and currency effects, sales revenues were 23% higher than in the previous year at EUR 104 million (compared with EUR 85 million).

The company also achieved strong growth in earnings. Overall, EBIT improved by 11% to EUR 94 million (compared with EUR 85 million) and earnings after tax rose by 13% to EUR 66 million (compared with EUR 59 million).

EBIT in the Europe region rose by 6% to EUR 46 million (compared with EUR 43 million), while EBIT in Asia-Pacific, Africa increased by 15% to EUR 34 million (compared with EUR 29 million). In the North and South America region, EBIT went up by 12% to EUR 17 million (compared with EUR 15 million). The positive earnings trend in the USA continued and Brazil is also picking up slightly, the company said.