Adhesives boost Henkel Q3 operating profit 12%

07 November 2007 09:59  [Source: ICIS news]

LONDON (ICIS news)--Henkel reported a 12% increase in third-quarter earnings before interest and tax (EBIT) to €359m ($527m) driven by a good performance from its adhesives business, the German specialty chemicals company said on Wednesday.

 

The Dusseldorf-based group’s sales rose 3% year on year to €3.36bn, with all three business sectors contributing to growth.

 

“In view of this encouraging business performance, we now expect our organic sales growth rate for 2007 to be in the range of 5-6%", said Henkel chairman Ulrich Lehner.

 

“We further anticipate an increase in operating profit - adjusted for foreign exchange - in excess of organic sales growth,” he added.

 

Third-quarter organic sales growth, which is adjusted for foreign exchange and acquisitions and divestments, was up 6%.  

 

The adhesives sector booked an 18.5% EBIT increase to €164m driven by organic sales growth, price increases and strict cost management, said Henkel.

 

Strong adhesives growth in emerging markets offset a slight decline in North America caused by poor market conditions, it added.

 

Laundry and home care’s EBIT improved 0.7% to €126m, with the unit reporting a 4.3% sales increase aided by growth in heavy-duty detergent and fabric softener.

 

Henkel said its cosmetic and toiletries business outpaced relevant markets, booking an EBIT increase of 6.4% at €95m. The business reported particularly good growth in eastern Europe and Latin America.

 

($1 = €0.69)

 

By: Mark Watts
+44 20 8652 3214

For the latest chemical news, data and analysis that directly impacts your business sign up for a free trial to ICIS news - the breaking online news service for the global chemical industry.

Get the facts and analysis behind the headlines from our market leading weekly magazine: sign up to a free trial to ICIS Chemical Business.

Printer Friendly