Henkel Q1 op profit down 33% as recession hits adhesives

08 April 2009 21:07  [Source: ICIS news]

TORONTO (ICIS news)--Henkel’s first-quarter operating profit dropped 33% and organic sales fell 7% in the wake of the global recession, the Germany-based adhesives and soap maker said in a preliminary results filing on Wednesday.

Operating profits for the three months ended 31 March fell to €215m ($287m), from €320m a year ago, mainly due to a 70% profit decline in Henkel's adhesives business, which suffered from the weakness in the automotive, electronics and metal processing industries.

Overall sales increased 3% to $3.25bn, but the increase was mainly due to the acquisition of the National Starch businesses, which was completed in April 2008. Organically, sales dropped around 7%, compared with the 2008 first quarter, the company said.

“The start of 2009 saw the challenging world economic situation continue, and this was reflected in Henkel´s business performance,” it said.

Henkel is due to publish detailed first-quarter results on 6 May.

($1 = €0.75)

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By: Stefan Baumgarten
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