Henkel first quarter net profits up 8.9% on better adhesives margins

08 May 2013 10:02  [Source: ICIS news]

LONDON (ICIS)--Henkel’s first quarter attributable net profits climbed by 8.9% to €393m ($517m) as operating profits pushed higher in adhesives despite a challenging market environment, the home, personal care and adhesives group said on Wednesday.

Underlying, or adjusted, earnings before interest and tax (EBIT) increased by 8.9% to €600m with adjusted return on sales for the group rising to 14.9% from 13.7% in the first quarter of 2012. The Adhesives technologies sector margin increase was significant – to 16.5% from 14.4%.

“The reasons for this improvement include the strict alignment of our portfolio to innovative customer solutions, and efficiency improvements”. Henkel said.

Adhesives Technology sales were 2.8% lower as reported at €1.94bn or 1.2% lower taking into account foreign exchange and movements and portfolio changes. The sales performance was weak in some key industries, Henkel said.

Group sales were 0.6% higher as reported at €4.03bn or 2.5% higher on an adjusted basis.

Henkel said that its The Laundry & Home Care business adjusted EBIT return on sales increased to 15.0% from 14.5%. The margin increase in the Beauty Care business sector was 0.5 percentage points to 14.9%.

The company has adjusted downward its expectations for global economic growth in 2013 but retains an earlier performance forecast of organic sales growth of between 3% and 5% this year and an adjusted return on sales for the group of about 14.5%.

($1 = €0.76)

By: Nigel Davis
+44 20 8652 3214

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