LIQUI MOLY continues to grow in spite of
crisis
Motor oil specialist increases turnover in USA by 21 percent
March 2015 - In spite of the crisis in a number of export markets, the
German motor oil and additive specialist LIQUI MOLY succeeded
in further increasing its turnover during the past year. It increased
slightly by one percent to 421 million euros. "This means we have
succeeded in steering our LIQUI MOLY ship through all storms,"
said Ernst Prost, LIQUI MOLY Business Manager. In the USA
growth was considerably higher with 21 percent.
Here LIQUI MOLY has been particularly successful in the German
import car sector, because these cars need motor oils officially approved
by the car manufacturer. And this is one of LIQUI MOLY's strong
points. Moreover our brand scores with chemical problem solvers for
workshops such as our diesel particulate filter cleaner.
In its home market in Germany LIQUI MOLY is so strong in the
meantime that further growth is becoming increasing difficult. Here
turnover stagnated during the past year. Our locomotive for growth is our
export business, which, in the meantime, has reached 60 percent of our
total turnover. LIQUI MOLY is sold in over 110 countries. However
these also include several counties making headlines as trouble spots:
Syria, Iraq, Libya and Ukraine. At one time Ukraine was one of LIQUI
MOLY's three largest export markets; however in 2014 the turnover
dropped by one-half. "Compared with the suffering experienced by the
people there, this is only a trifle, but, naturally, it has left its tracks in our
balance", continued Ernst Prost. For this reason the export business was
not as strong as planned.
"Failure to meet planning is never good, but turnover without profit is not
what we are looking for", said Ernst Prost. "We want healthy growth." In
spite of the reduced growth, LIQUI MOLY has continued to invest in
personnel and material. The number of employees increased during the
previous year by 50 for a total of 696.
The decreasing price of crude oil during the past few months has had
only a minor effect on our costs. LIQUI MOLY's production process uses
base oils, i.e. refined oils; not crude oil. These prices have not decreased
nearly as much and with some delay. Other prices, such as our high cost
additive packages, have even increased - and state-of-the-art motor oils
consist of over 30 percent additives. Finally these are purchased in
dollars, and the weak euro makes them more expensive. "Sinking crude
oil prices do not automatically mean lower prices for the final motor oils
- this calculation simply doesn't work out", stated Purchasing Manager
Achim Scharm.
Continued growth is the motto on our way to a worldwide brand. This
year LIQUI MOLY will conclude its 20 million euro investment
program. Then the oil production facilities will be completely finished
and the laboratory capacities expanded. Moreover 16 new employees
have been added to our staff since January. "This will make us fit for the
future", explained Personnel Manager Rainer Maass, "because employees
are the company's most important asset."
The company is pushing its export business and, in addition to major
markets such as the USA, China and India, is also consciously focusing
on smaller countries such as Kazakhstan, Uruguay and Cambodia. Ernst
Prost: "For our major competitors these countries are frequently not
lucrative enough, reducing the pressure from competition. But drivers
there also want top of the line motor oils from Germany."
About LIQUI MOLY
LIQUI MOLY GmbH from Ulm in South Germany offers a wide range
of high-quality products such as motor oils, additives, vehicle care
products and service products. The range includes some 4000 items.
LIQUI MOLY develops and tests their products in their own
laboratories, manufactures exclusively in Germany and markets all of
their products themselves. LIQUI MOLY was founded some 50 years
ago and is now one of the leading companies in the industry. The
products are sold in Germany and in 110 other countries.
For more information, please contact:
Peter Szarafinski
Jerg-Wieland-Str. 4
89081 Ulm-Lehr
Germany
Tel.: +49 7 31/14 20 189
Fax: +49 7 31/14 20 82
[email protected]