Calumet

Calumet last Wednesday reported a net loss for the quarter ended September 30, 2013 of $34.8 million compared to net income of $42.4 million for the same quarter in 2012. Third quarter 2013 results also include $2.4 million in non-cash unrealized derivative gains, compared to $22.1 million of non-cash unrealized derivative losses in the third quarter 2012. Adjusted EBITDA was $38.3 million for the third quarter 2013, as compared to $121.3 million in the prior quarter.

Specialty products segment, which includes lubricants, gross profit decreased 51.5%, or $46.7 million, in the third quarter 2013, compared to the third quarter 2012.  The year over year decline was primarily attributable to a decrease in the average selling price per barrel sold of specialty products, driven primarily by lower lubricating oils and asphalt prices, in addition to lower sales volumes of lubricating oils. Higher repairs, maintenance and natural gas expenses contributed to higher operating costs in the segment during the third quarter.

Calumet stated "During the third quarter 2013, the Partnership's performance was adversely impacted by a significant decline in both fuel and specialty products margins as compared to the prior year period.  Sales prices for gasoline, lubricating oils and asphalt did not keep pace with a rapid escalation in the price of crude oil during the third quarter 2013, resulting in a year over year decline in gross profit".

"Higher crude oil prices adversely impacted refined product margins within both our fuel and specialty products segments during the third quarter," stated Bill Grube, Vice Chairman and Chief Executive Officer of Calumet Specialty Products Partners, L.P.

"In our specialty products segment, we recently received confirmation from Wal-Mart Stores that they will begin selling our Royal Purple line of automotive synthetic lubricants and performance products during the first quarter of 2014. We expect to sell a wide range of Royal Purple products in more than 2,400 Wal-Mart locations," continued Grube. "The Wal-Mart distribution channel represents a major opportunity to grow the Royal Purple brand, consistent with the strategy we outlined during our Analyst Day held in June 2013. While our packaged and synthetic specialty product sales currently represent a relatively small percentage of our overall specialty products segment sales mix, we have continued to see outstanding growth in this product line and will look to expand this area of our business during 2014, stated Grube"

 

FUCHS PETROLUB

 

Mannheim, Germany-based FUCHS PETROLUB Group last Monday announced earnings before interest and tax (EBIT) of EUR 237.2 million compared with EUR 224.2 million in the same period in 2012. This represents an increase over the previous year of EUR 13.0 million or 5.8%. Earnings after tax rose by 5.7% or EUR 8.9 million to EUR 165.6 million compared with EUR 156.7 million in the same period in 2012. The company recorded organic growth in sales revenues of 2.9% in the first nine months of 2013. At EUR 1,379.0 million, the Group recorded sales revenues at the previous year's level of EUR 1,379.2 million.

 

Looking ahead, FUCHS expects business in the remaining months of this year to be at a similar rate as the first nine months of the year and confirms its target of achieving organic growth in sales revenues in the low single-digit percentage range for the fiscal year. FUCHS said it still expects an increase in EBIT. It may be difficult to continue the dynamics observed in the first nine months of the year, not least due to exchange rate movements.