06 March 2013 10:16 [Source: ICIS news]
LONDON (ICIS)--Henkel reported a 68% year-on-year rise in fourth-quarter net income to €357m ($464m) on the back of higher sales, the German adhesives and soaps maker said on Wednesday.
Sales for the quarter grew by 5.3% to €4.0bn, with earnings before interest and taxes (EBIT) up by 42% to €492m, the company said.
For the full year 2012, Henkel’s net income was at €1.56bn compared with €1.19bn in the prior year, while sales rose 5.8% to €16.5bn, despite a challenging economic environment, Henkel said.
It added that organic sales - which exclude the impact of foreign exchange, along with acquisitions and divestments - rose by 3.8%, driven by both price and volume. Total reported EBIT amounted to €2.20bn compared with €1.77bn in the prior year.
Henkel CEO, Kasper Rorsted, said: “All three Henkel business sectors showed profitable growth with expansion of market shares in their relevant markets … We have substantially strengthened Henkel’s competitiveness, establishing a strong foundation for our future growth.”
Looking at fiscal year 2013, Rorsted said: “The strong dynamics and high volatility in our markets will persist. Although Henkel is well positioned, we will continue to further simplify and improve our processes in order to respond to changes faster than our competition.
“We expect organic sales growth for the full fiscal year to be between 3-5%. We also expect to increase our adjusted EBIT margin to around 14.5%, and improve adjusted earnings per preferred share by around 10%," he added.
In 2012, the group’s adjusted EBIT margin increased by 1.1 percentage points, from 13.0% in 2011 to 14.1%.
($1 = €0.77)
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