Consumer businesses continue their successful course - Adhesives business further improved versus previous quarters DUESSELDORF, Germany and ROCKY HILL, Conn., Nov. 11 /CNW/ -- -- Sales down 7.3 percent to 3,485 million euros -- Decline in organic sales reduced to 2.5 percent -- Operating profit up 191 million euros to 290 million euros -- Adjusted operating profit down 1.5 percent to 385 million euros </pre> <p>In the third quarter of 2009, Henkel generated sales of <money>3,485 million euros</money>. In a still difficult market environment, this represents a decrease of 7.3 percent compared to the figure for the prior-year quarter. In organic terms, i.e. after adjusting for foreign exchange and acquisitions/divestments, sales showed another improvement compared to the first two quarters of this year, coming in just 2.5 percent below the level of the third quarter of 2008. However, performance of the company's three business sectors continued to show a very mixed picture. Laundry & Home Care again performed well, posting an increase in organic sales of 2.4 percent. Cosmetics/Toiletries saw organic sales rise by 3.7 percent, again outstripping the already very good figures of recent quarters. Due to the volume decline encountered in major customer industries, Adhesive Technologies registered a decrease in organic sales of 7.6 percent. Compared to the second quarter, however, the drop in organic sales has halved.</p> <p/> <p>"In the third quarter, we were again able to continue our positive performance of recent quarters," says Kasper Rorsted, Chairman of the Henkel Management Board. "We achieved excellent results at Laundry & Home Care, and our Cosmetics/Toiletries business sector was also able to once again exceed the very good performance of the previous quarters. There was also a further improvement in the results of the Adhesive Technologies business sector in the course of the year, albeit on a lower level than in the previous year." Rorsted continued: "The encouraging results registered in this last quarter reflect both the stabilization in our markets and our programs on structural and cost alignment."</p> <p/> <p>Due primarily to the burden of restructuring charges on the results of the prior-year quarter, operating profit (EBIT) increased by 51.8 percent, from <money>191 million euros</money> to <money>290 million euros</money>. After adjusting for one-time gains and charges and restructuring charges totaling <money>95 million euros</money>, adjusted operating profit ("adjusted EBIT") decreased slightly by 1.5 percent, from <money>391 million euros</money> to <money>385 million euros</money>.</p> <p/> <p>Return on sales (EBIT margin) was 8.3 percent, while adjusted return on sales ("adjusted EBIT margin") increased from 10.4 percent to 11.0 percent.</p> <p/> <p>The investment result fell from <money>24 million euros</money> to <money>0 million euros</money> due to the sale of the company's stake in Ecolab in <chron>November 2008</chron>. Net interest expense improved by <money>32 million euros</money>, from -72 million euros to -40 million euros, largely attributable to lower interest rates compared to the previous year. Consequently, the financial result improved from -48 million euros to -40 million euros. The tax rate amounted to 28.0 percent.</p> <p/> <p>Due to the increased EBIT, net earnings for the quarter rose by 68.2 percent, from <money>107 million euros</money> to <money>180 million euros</money>. After deducting minority interests of <money>8 million euros</money>, quarterly net earnings totaled <money>172 million euros</money> compared to <money>101 million euros</money> in the third quarter of 2008. Adjusted quarterly net earnings after minority interests amounted to <money>240 million euros</money> versus <money>251 million euros</money> in the prior-year quarter. Earnings per preferred share increased from <money>0.23 euros</money> to <money>0.39 euros</money>. The adjusted figure was <money>0.55 euros</money> compared to <money>0.59 euros</money> in the prior-year quarter.</p> <p/> <p>Thanks to a strong cash flow performance, net debt was further reduced compared to the end of the second quarter of 2009 by some <money>700 million euros</money> to <money>3.2 billion euros</money>. Good progress was also made with regard to working capital management: compared to the prior-year period, the ratio of net working capital to sales improved from 12.8 percent to 10.3 percent.</p> <pre> Sales and Profits Forecast 2009 </pre> <p>Despite the recently apparent stabilization of the markets at their low level of activity, it remains difficult to assess the overall economic situation and how it is likely to develop going forward.</p> <p/> <p>Nevertheless, Henkel is confident of again outperforming its relevant markets in terms of organic sales growth (i.e. after adjusting for foreign exchange and acquisitions/divestments). A number of measures have already been introduced on the operational side, from which Henkel expects further positive momentum to develop. These activities and also relief from easing raw material prices will support the development of operating profit (EBIT) and earnings per preferred share (EPS), adjusted in each case for one-time gains and charges and restructuring charges.</p> <p/> <p>Henkel expects its consumer businesses to continue to perform well in the fourth quarter as they have in the first nine months of this year, albeit with a degree of deceleration. Henkel anticipates that the performance of its Adhesive Technologies business sector will be an improvement on that of the first nine months.</p> <pre> The complete third quarter report can be found at www.henkelna.com/press. Henkel in North America: </pre> <p>Henkel markets a wide range of well-known consumer and industrial brands in <location>North America</location>, including Dial® soaps, Purex® laundry detergents, Right Guard® antiperspirants, got2b® hair gels, and Loctite® adhesives. Visit <a href="http://www.henkelna.com">www.henkelna.com</a> for more information.</p> <p/> <p>This information contains forward-looking statements which are based on the current estimates and assumptions made by the corporate management of Henkel AG & Co. KGaA. Forward-looking statements are characterized by the use of words such as expect, intend, plan, predict, assume, believe, estimate, anticipate, etc. Such statements are not to be understood as in any way guaranteeing that those expectations will turn out to be accurate. Future performance and the results actually achieved by Henkel AG & Co. KGaA and its affiliated companies depend on a number of risks and uncertainties and may therefore differ materially from the forward-looking statements. Many of these factors are outside Henkel's control and cannot be accurately estimated in advance, such as the future economic environment and the actions of competitors and others involved in the marketplace. Henkel neither plans nor undertakes to update any forward-looking statements.</p> <p/> <p> </p> <pre> Contact: Cindy Demers (North America) Tel: 480-754-4090 E-mail: [email protected] </pre> <p> </p> <pre> Lars Witteck (International) Phone: +49-211-797-2606 Fax: +49-211-798-4040 </pre> <p>You will find the full report for the third quarter of 2009 and also photo material at <a href="http://www.henkel.com/press">http://www.henkel.com/press</a>.</p> <pre> press.henkel.com
For further information: For further information: Cindy Demers (North America), +1-480-754-4090, [email protected], or Lars Witteck (International), +49-211-797-2606, or Fax, +49-211-798-4040, both of Henkel Web Site: http://www.henkelna.com
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