German lube blender Fuchs Petrolub saw profit edge up in the final three months of last year on the back of strong sales and earnings growth in the Americas and Europe, Mideast Gulf and Africa (EMEA) regions.Rising sales and profit in those markets countered slower sales growth and shrinking profit in the Asia-Pacific region.Rising costs weighed on profitability in all regions.The Russian-led war in Ukraine and China’s zero-Covid policy also created unprecedented supply and demand disruptions throughout the year..Supply bottlenecks with an unprecedented shortage of raw materials, roughly 70pc increases in raw material costs in just two years, and high inflation rates impacting our costs preoccupied us throughout the whole yearFuchs Petrolub Chairman Stefan Fuchs.The blender’s profit before interest and taxes (EBIT) came to €85mn ($90mn) in the three months to end-December, up from €84mn during the same period a year earlier.Profit edged up even as revenue rose by 17pc on the back of a 35pc rise in sales in North and South America and a 21pc rise in sales in EMEA..Higher prices drove the revenue growth in the EMEA region.Higher prices, business expansion and positive currency effects drove even stronger growth in the Americas.A 2pc rise in sales in Asia-Pacific limited the size of Fuchs' total revenue growth.The region’s weak sales growth reflected the impact of China’s zero-Covid policy and the subsequent slump in the country’s economic activity.Muted sales growth and rising costs triggered a 14pc fall in the region’s profit. Firmer earnings growth in India, southeast Asia and Australia cushioned the slowdown.Profit rose in the other regions.The 20pc rise in total costs in the fourth quarter of the year outpaced the increase in total sales.Margins fell in response.Fuchs’ EBIT margin of 9.8pc in the fourth quarter fell from 11.1pc during the previous three months to the lowest since the second quarter of 2020.The sales and earnings outlook for 2023 was hard to forecast in view of uncertainty about the outlook for economic growth, raw material costs and sales prices.Fuchs forecast sales of €3.6bn in 2023 and EBIT of around €390mn.The sales forecast would reflect 6pc growth from €3.41bn in 2022. The EBIT forecast was up 7pc from €365mn in 2022..Castrol’s Q4 profit falls
German lube blender Fuchs Petrolub saw profit edge up in the final three months of last year on the back of strong sales and earnings growth in the Americas and Europe, Mideast Gulf and Africa (EMEA) regions.Rising sales and profit in those markets countered slower sales growth and shrinking profit in the Asia-Pacific region.Rising costs weighed on profitability in all regions.The Russian-led war in Ukraine and China’s zero-Covid policy also created unprecedented supply and demand disruptions throughout the year..Supply bottlenecks with an unprecedented shortage of raw materials, roughly 70pc increases in raw material costs in just two years, and high inflation rates impacting our costs preoccupied us throughout the whole yearFuchs Petrolub Chairman Stefan Fuchs.The blender’s profit before interest and taxes (EBIT) came to €85mn ($90mn) in the three months to end-December, up from €84mn during the same period a year earlier.Profit edged up even as revenue rose by 17pc on the back of a 35pc rise in sales in North and South America and a 21pc rise in sales in EMEA..Higher prices drove the revenue growth in the EMEA region.Higher prices, business expansion and positive currency effects drove even stronger growth in the Americas.A 2pc rise in sales in Asia-Pacific limited the size of Fuchs' total revenue growth.The region’s weak sales growth reflected the impact of China’s zero-Covid policy and the subsequent slump in the country’s economic activity.Muted sales growth and rising costs triggered a 14pc fall in the region’s profit. Firmer earnings growth in India, southeast Asia and Australia cushioned the slowdown.Profit rose in the other regions.The 20pc rise in total costs in the fourth quarter of the year outpaced the increase in total sales.Margins fell in response.Fuchs’ EBIT margin of 9.8pc in the fourth quarter fell from 11.1pc during the previous three months to the lowest since the second quarter of 2020.The sales and earnings outlook for 2023 was hard to forecast in view of uncertainty about the outlook for economic growth, raw material costs and sales prices.Fuchs forecast sales of €3.6bn in 2023 and EBIT of around €390mn.The sales forecast would reflect 6pc growth from €3.41bn in 2022. The EBIT forecast was up 7pc from €365mn in 2022..Castrol’s Q4 profit falls
