MANNHEIM (dpa-AFX) - Lubricant manufacturer Fuchs benefited from its business expansion and recent acquisitions in the first quarter of 2025. While sales rose again, operating profit (EBIT) did not grow quite as quickly after a record result last year. Analysts had expected higher earnings before interest and taxes. The company confirmed its targets for the current year on Wednesday.
The share price fell by around 1.6 percent in morning trading. Baader analyst Konstantin Wiechert noted that the first quarter had fallen short of expectations. A weaker second quarter would jeopardize the annual targets. Oliver Schwarz of Warburg Research also described the start to the year as "not entirely" convincing.
Fuchs was satisfied with business in China. It continued its positive development, said CEO Stefan Fuchs. This enabled a significant increase in earnings in the Asia-Pacific region and offset the somewhat weaker performance in the EMEA region, which includes Europe, the Middle East, and Africa.
"With our strong, largely independent regional centers in Europe, China, and the US, we believe we are ideally positioned even in the current trade dispute," Fuchs explained. The direct impact on the company's sales is manageable. However, it remains difficult to estimate the extent to which further escalation will affect the global economy and thus indirectly also Fuchs' business. Although the company sees diverse growth potential, it is continuing to take a cautious approach due to the economic situation.
In the first three months to the end of March, sales climbed by five percent year-on-year to 924 million euros, as the MDax company in Mannheim announced. However, operating profit (EBIT) rose only slightly to 108 million euros. The corresponding margin shrank from 12.2 to 11.7 percent. The company attributed this to, among other things, the acquisitions made and one-time start-up costs for the large customer business. Bottom line, net profit remained at 77 million euros.
Revenues are expected to continue growing to €3.7 billion in 2025. In 2024, the group's revenues remained at the previous year's level at around €3.5 billion. Fuchs estimates operating earnings before interest and taxes (EBIT) at around €460 million, just under six percent above the previous year's figure.
Meanwhile, the company intends to continue making acquisitions despite the tariff dispute. Fuchs said that there are acquisition targets with which the company has been in contact for many years. "And when the time comes, we will definitely go ahead and not put the brakes on," he added. The same applies to investments.
Last year, the company acquired Lubcon, a manufacturer of high-performance specialty lubricants based in Maintal, Hesse, and Swiss industrial lubricant manufacturer Strub, among others. This was followed in early 2025 by the purchase of specialty lubricant manufacturer Boss in Albstadt. Just recently, Fuchs announced the acquisition of US lubricant solutions specialist Irmco.
The automotive and commercial vehicle industry is particularly important for the company, which employs around 6,800 people. Fuchs generates around 30 percent of its sales in these sectors. The shift from combustion engines to electric motors is therefore also leading to changes at Fuchs. The group also has customers in sectors such as mechanical engineering, metal processing, mining, aerospace, agriculture, and forestry. /mne/nas/jha/
