Q1 results burdened by fall in demand among key industrial customers
- Sales increase of 3.1 percent to 3,258 million euros
- Organic sales decline of 7.0 percent
- Adjusted operating profit fell 26.1 percent to 235 million euros
- Adjusted earnings per preferred share declined 39.2 percent to 0.31
DUESSELDORF, Germany and ROCKY HILL, Conn., May 6 /PRNewswire/ -- In its
first quarter of 2009, Henkel increased sales compared to the prior-year
quarter by 3.1 percent to 3,258 million euros. The rise is attributable to
Henkel's acquisition of the National Starch businesses in April 2008. In
organic terms, or adjusted for foreign exchange and acquisitions/divestments,
sales decreased by 7.0 percent within a difficult overall market environment.
After adjusting for foreign exchange, the increase in sales amounted to 3.8
percent. Business development at the company's three business sectors was very
mixed. While the consumer goods business sectors Laundry & Home Care and, in
particular, Cosmetics/Toiletries, continued to perform very well, with organic
growth rates of 0.4 percent and 3.5 percent respectively, the Adhesive
Technologies business sector suffered from the challenges encountered in major
customer industries worldwide. This was reflected in an organic decline in
sales of 18.2 percent.
(Logo: http://www.newscom.com/cgi-bin/prnh/20090415/DE99335LOGO )
"At the beginning of this new financial year, Henkel too has felt the
effects of the persistently adverse economic climate, with our businesses
turning in a very mixed set of results for the first quarter of 2009,"
commented Kasper Rorsted, Chairman of the Henkel Management Board. "Our two
consumer goods business sectors, Laundry & Home Care and Cosmetics/Toiletries,
continued to perform very well, while the Adhesive Technologies business
sector suffered from the challenges encountered in major customer industries
worldwide." Rorsted continued: "We are dissatisfied with our start to fiscal
2009. However, we are convinced that, as a result of our early introduction of
countermeasures and based on our solid financial position, we will emerge from
this still difficult economic environment stronger than before."
Due primarily to the significant decrease in earnings at the Adhesive
Technologies business sector, operating profit (EBIT) fell by 31.7 percent
from 320 million euros in the first quarter of 2008 to 218 million euros.
After adjusting for one-time gains/charges and restructuring charges, adjusted
operating profit ("adjusted EBIT") decreased by 26.1 percent from 318 million
euros in the prior-year quarter to 235 million euros.
The EBIT margin amounted to 6.7 percent, while the adjusted EBIT margin
declined from 10.1 percent to 7.2 percent. Both results are largely
attributable to the significant decrease in profits at the Adhesive
Technologies business sector.
As a result of the sale of Henkel's stake in Ecolab in November 2008, the
investment result fell from 19 million euros to 0 million euros. Net interest
expense increased by 14 million euros from -38 million euros to -52 million
euros. This is primarily due to higher net debt arising from the financing of
the purchase price for the acquisition of the National Starch businesses. The
financial result consequently decreased further, from -19 million euros to -52
million euros. The tax rate amounted to 27.1 percent.
With the lower EBIT and the decrease in the financial result, net
earnings for the quarter fell by 45.7 percent from 223 million euros to 121
million euros. After minority interests totaling 4 million euros, net earnings
for the quarter amounted to 117 million euros (prior-year quarter: 219 million
euros). Adjusted quarterly net earnings after minority interests were 130
million euros compared to 218 million euros in the first quarter of the
previous year. Earnings per preferred share eased from 0.51 euros to 0.28
euros. The adjusted figure was 0.31 euros compared to 0.51 euros in the
The complete first quarter report can be found at www.henkelna.com/press.
Henkel in North America
Henkel markets a wide range of well-known consumer and industrial brands
in North America, including Dial(R) soaps, Purex(R) laundry detergents, Right
Guard(R) antiperspirants, got2b(R) hair gels, and Loctite(R) adhesives. Visit
www.henkelna.com for more information.
Cindy Demers (North America)
Lars Witteck (International)
Photo material available for downloading at http://henkel.com/press. For
more detailed facts and figures relating to the first quarter of 2009, please
go to: http://www.henkel.com/ir.
For further information:
For further information: North America: Cindy Demers, +1-480-754-4090,
firstname.lastname@example.org, or International: Lars Witteck, +49-211-797-2606,
fax: +49-211-798-9208, both of Henkel Web Site: http://www.henkelna.com