Fuchs Falls Most in 3 Years on Abandoned 2014 Profit ForecastSheenagh Matthews
Fuchs Petrolub SE declined the most in three years after the world’s biggest independent maker of lubricants abandoned its full-year earnings forecast, citing the strong euro’s effect on sales collected in other currencies.
Earnings before interest and taxes this year will stay at last year’s level, the Mannheim, Germany-based company said today in a statement. Fuchs had previously expected a gain in the “low single-figure” percentage range. The preferred shares fell as much as 11 percent, the steepest intraday drop in Frankfurt trading since August 2011.
European lubricant makers are facing heightened competition as emerging-market competitors increase exports, Fuchs has said. The German company’s earnings have also been restrained by currency exchange rates, which eroded most sales gains in the first half, it said today.
“We have become more cautious, due to the severe loss in value of a number of currencies,” Chairman Stefan Fuchs said in the statement.
The preferred stock was down 9.8 percent at 27.16 euros as of 10:02 a.m. local time. The shares have declined about 24 percent this year, giving the company a market value of 3.8 billion euros ($5.1 billion).
Ebit in the second quarter was 75.6 million euros, missing an average analyst estimate of 79.6 million euros. Sales were 462.5 million euros, also missing estimates in a Bloomberg survey.
The lubricant maker is majority owned by the Fuchs founding family.