Henkel AG & Co. KGaA

EANS-News: Henkel AG & Co. KGaA /

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quarterly report/9-month report/Henkel

Düsseldorf (euro adhoc) - Organic sales growth between 5 and 6 percent expected
for full fiscal 2011

Henkel continues solid performance in Q3

    • Sales increase of 1.7 percent to 4,028 million euros (organic: +6.5%)
    • Adjusted* operating profit: plus 4.7 percent to 541 million euros
    • Adjusted* EBIT margin: plus 0.4 percentage points to 13.4 percent
    • All business sectors delivered substantial margin increases
    • Adjusted* earnings per preferred share (EPS): plus 6.3 percent to 0.85
    • Further double-digit increase in the growth regions (organic: +10.9%)

Düsseldorf, Germany - "Henkel continued  its  solid  performance  in  the  third
quarter. Despite the challenging market environment, we outperformed once  again
our relevant markets in terms of organic sales growth," said Henkel CEO,  Kasper
Rorsted. "All our business sectors contributed to this growth, and with  further
double-digit increases in our growth regions, we  improved  their  share  to  43
percent of our total sales. Despite higher raw material prices,  we  managed  to
improve profitability in all our business sectors."

For the full fiscal year 2011, Rorsted provided  the  following  guidance:  "The
economic environment remains challenging. In  addition  to  intense  competition
and high raw material prices, the  debt  crisis  in  the  eurozone  is  bringing
additional uncertainty into  the  markets.  Against  this  background,  we  will
continue to adapt our structures in order to respond more quickly  and  flexibly
to changes in our markets,  and  maintain  strict  cost  control."  Henkel  also
slightly raised its guidance for organic sales growth in 2011:  "We  now  expect
organic sales growth for the full fiscal year to be between 5 and 6 percent.  In
line with our previous guidance we expect our adjusted EBIT margin  to  increase
to around 13 percent and adjusted earnings  per  preferred  share  by  about  10
percent," Rorsted added.

Henkel´s sales in the third quarter of 2011 increased to 4,028 million euros,  a
rise of 1.7 percent compared with the prior-year quarter.  After  adjusting  for
foreign exchange, sales improved by 5.7 percent. At 6.5 percent, organic  sales,
which exclude the impact of  foreign  exchange  and  acquisitions/divestments  -
again showed a strong increase.

All three business sectors contributed to this positive performance:  Laundry  &
Home  Care  registered  encouraging  organic  growth  of  3.8  percent,   driven
exclusively   by   price.   The   strong   organic   sales   growth    at    the
Cosmetics/Toiletries  business  sector  was  5.6   percent,   achieved   through
significant volume increases.  Adhesive  Technologies  attained  strong  organic
sales growth  of  8.7  percent  generated  through  both  volume  increases  and
implemented price increases. As a result, Henkel  was  able  to  further  expand
global market share in all three business sectors.

After allowing for one-time charges, one-time gains and  restructuring  charges,
adjusted operating profit improved by 4.7 percent, from  517  million  euros  to
541 million euros, with  all  three  business  sectors  contributing.  Operating
profit (EBIT) totaled 451 million euros compared to 501  million  euros  in  the
same quarter of 2010.

Despite the  influence  of  higher  prices  for  raw  materials  and  packaging,
adjusted return on sales (EBIT margin) rose by 0.4 percentage points, from  13.0
percent to 13.4 percent. Return on sales came  in  at  11.2  percent,  following
12.7 percent in the comparative prior-year period.

At -37 million euros, the financial result remained at the level of  the  prior-
year quarter.  The tax rate amounted to 24.2 percent (prior-year  quarter:  26.1
Adjusted  quarterly  net  income  after  deducting   non-controlling   interests
amounted to 366 million euros  compared  to  349  million  euros  in  the  third
quarter of 2010, a rise of 4.9 percent. Net  income  for  the  quarter  was  314
million euros compared to 343 million euros in  the  prior-year  quarter.  After
deducting non-controlling interests of 7  million  euros,  net  income  for  the
quarter totaled 307 million  euros  (prior-year  quarter:  337  million  euros).
Adjusted earnings per preferred share (EPS) rose by 6.3 percent  to  0.85  euros
compared to 0.80 euros in the prior-year quarter. The nominal  figure  was  0.71
euros compared to 0.78 euros in the third quarter of 2010.

The ratio of net working capital to sales was 8.0 percent, about the same as  in
the prior-year quarter. Net debt as of September  30,  2011  amounted  to  1,859
million euros, some 1 billion euros below the level of  the  previous  year  and
falling below the 2 billion euro mark for the first time since  the  acquisition
of the National Starch businesses in 2008.

Business performance from January through September 2011

In the first nine months of fiscal  2011,  Henkel  increased  sales  versus  the
prior-year period by 3.9 percent to 11,804 million euros.  After  adjusting  for
foreign exchange, sales improved by 6.2 percent. At 6.6 percent,  organic  sales
growth also came in significantly above the  level  of  the  prior-year  period.
Adjusted operating profit rose by 8.0  percent,  from  1,414  million  euros  to
1,528 million euros, with the  Cosmetics/Toiletries  and  Adhesive  Technologies
business sectors  making  a  particularly  significant  contribution.  Operating
profit (EBIT) increased by 5.5  percent,  from  1,344  million  euros  to  1,418
million euros. Adjusted  return  on  sales  (EBIT  margin)  improved  from  12.4
percent to 12.9 percent.  Return  on  sales  rose  from  11.8  percent  to  12.0

Adjusted  net  income  for  the  nine  months  after  deducting  non-controlling
interests rose by 11.0 percent, from 922 million euros to 1,023  million  euros.
Net income for the nine months came in at 979  million  euros  compared  to  889
million  euros  in  the  prior-year  period.  After  deducting   non-controlling
interests of 21 million euros, net income for the  period  totaled  958  million
euros (previous year: 869 million euros). Adjusted earnings per preferred  share
(EPS) rose by 11.3 percent, from 2.13 euros to 2.37 euros.  The  nominal  figure
was 2.22 euros compared to 2.01 euros in the prior-year period.

Business sector performance in the third quarter 2011

The Laundry & Home Care business sector increased organic sales by 3.8  percent.
The positive price developments of the second quarter were  further  accelerated
with the result that organic growth in the third  quarter  was  entirely  price-
driven. Despite a slight decline in the relevant markets,  volumes  remained  at
the level of the prior-year quarter. In nominal terms, sales came  in  at  1,110
million euros compared to 1,123 million in the prior-year quarter.

Positive momentum in organic  sales  development  emanated  primarily  from  the
growth regions of Eastern Europe, Africa/Middle  East  and  Latin  America.  The
Africa/Middle  East  region  continued  its  recovery  following  the  political
upheavals, contributing to organic expansion with  a  high  single-digit  growth
rate. Sales in North America increased despite  a  further  contraction  in  the
market. An improvement in  sales  was  also  achieved  in  Western  Europe,  due
particularly to  continuing  strong  growth  in  Germany.  This  positive  sales
performance in  generally  declining  markets  led  to  a  further  increase  in
Henkel´s global market share.

Adjusted operating profit  increased  by  1.6  percent  to  155  million  euros.
Adjusted return on sales improved by 0.4 percentage points to 14.0 percent.  The
third quarter was again characterized by high raw material prices.  However,  by
increasing its own prices and with ongoing measures to reduce cost  and  enhance
efficiency in  both  production  and  the  supply  chain,  the  business  sector
succeeded in largely offsetting the impact of rising  material  costs  on  gross
margin. Return on sales  further  improved  as  a  result  of  cost  reductions.
Operating profit totaled 125 million euros, compared to  139  million  euros  in
the prior-year quarter.
The third quarter again saw the Cosmetics/Toiletries  business  sector  continue
its upward growth curve. As in  the  previous  quarters,  organic  sales  growth
significantly outstripped the relevant markets,  coming  in  this  time  at  5.6
percent. Despite the persistently difficult  and  intensely  competitive  market
environment, the business sector was able to further expand its  market  shares.
With prices slightly below the level of the prior-year quarter,  organic  growth
was driven by significant volume increases, backed up  by  a  strong  innovation
program. Sales totaled 860 million euros, 1.9 percent above the figure  for  the
prior-year quarter.

Sales increases were reported in each of the company´s  regions.  The  strongest
rises and another  double-digit  growth  rate  were  registered  in  the  growth
markets  of  Eastern  Europe,  Africa/Middle  East,  Latin  America   and   Asia
(excluding Japan). Development in China was particularly dynamic with  a  strong
core business and numerous new product launches. Sales growth was also  achieved
in the mature  markets.  Aside  from  substantial  sales  increases  in  Western
Europe, there were also positive developments in North America,  with  expansion
in our business there outpacing the relevant markets.

Adjusted operating profit increased by 7.0 percent to  123  million  euros,  and
return on sales improved by 0.7 percentage points, rising to a new high of  14.3
percent. Further margin improvement was supported by ongoing measures to  reduce
cost and enhance efficiency. Persistently high  prices  for  raw  materials  and
packaging could be  partially  offset.  Operating  profit  totaled  111  million
euros, compared to 113 million euros in the prior-year quarter.

Once again in the third quarter of  2011,  the  Adhesive  Technologies  business
sector  significantly  outperformed  its  relevant  markets,  increasing   sales
organically  by  8.7  percent  versus  the  prior-year  quarter.  This  positive
development was driven by both volume  increases  and  successfully  implemented
price rises. In nominal terms, sales  rose  by  3.9  percent  to  2,020  million
euros, thus exceeding the 2 billion euro mark for the first time in a quarter.

Growth was achieved in each of the business sector´s regions. In addition  to  a
significant increase in sales in the mature markets,  appreciable  momentum  was
also once again generated in the emerging markets, with Africa/Middle  East  and
Eastern Europe - driven by Russia  particularly  -  once  again  exhibiting  the
highest growth rates.

Adjusted operating profit again improved  significantly  versus  the  prior-year
quarter, by 8.6 percent to 291 million euros. As a result,  adjusted  return  on
sales rose by 0.6 percentage  points  to  14.4  percent,  with  the  substantial
increases in raw material and packaging  prices  being  largely  offset  by  the
business sector increasing  its  own  prices  as  well  as  reducing  costs  and
enhancing efficiency. Operating profit totaled 254 million  euros,  compared  to
268 million euros in the prior-year quarter.

Regional performance

In the highly competitive market  environment  of  the  Western  Europe  region,
sales improved organically by  3.8  percent  to  1,422  million  euros.  Organic
growth also came in at 3.8 percent. The main driver of this increase  was  sales
growth generated in Germany. Despite the increasing severity  of  the  financial
crisis in Southern Europe, growth in Italy was particularly positive.  Sales  in
the Eastern Europe region rose by 4.2 percent  to  775  million  euros.  Organic
growth was even higher at 10.3  percent.  Among  the  primary  reasons  for  the
improvement  were  the  company´s  businesses  in  Turkey  and   the   adhesives
operations in Russia. Although sales growth in  the  Africa/Middle  East  region
continued to be hampered by political unrest in some countries,  a  double-digit
organic  improvement  of  13.1  percent  was  nevertheless  achieved,  with  the
adhesives business making a  particularly  strong  contribution.  Sales  of  the
region  totaled  237  million  euros  compared  to  229  million  euros  in  the
comparable period of the previous year. Sales generated  in  the  North  America
region decreased by 4.6 percent to 699  million  euros,  with  foreign  exchange
rates exerting major negative impact. Organically, however, sales  rose  by  4.0
percent despite the sluggish consumer climate prevailing in the USA. The  region
of Latin America recorded a sales increase of 5.4 percent to 273 million  euros.
Organic growth came in at 11.0 percent, with business performance in Mexico  and
Venezuela a major contributor. The Asia/Pacific region  saw  sales  increase  by
1.2 percent to 586 million euros, albeit with developments in Japan  exerting  a
dampening influence. Organic growth in the region was 7.6 percent, supported  in
particular by the double-digit rates of increase achieved in China and India.

Sales expansion was again given a particular boost  by  the  growth  regions  of
Eastern Europe, Africa/Middle East, Latin America and  Asia  (excluding  Japan).
Sales increased by 3.4 percent to  1,713  million  euros,  with  organic  growth
again double-digit at 10.9 percent. Total sales were boosted  in  particular  by
higher sales generated by Adhesive Technologies  and  Cosmetics/Toiletries.  The
share of sales attributable to these growth markets increased  from  42  percent
in the prior-year quarter to 43 percent this time.

Sales and profits forecast 2011

Following the first three quarters, Henkel is confident of  again  outperforming
its relevant markets in terms of organic sales growth. The company  now  expects
an increase in organic sales of between  5  and  6  percent  (previous  outlook:
around 5 percent). Henkel confirms its forecast for an adjusted return on  sales
(EBIT) of around 13 percent (2010: 12.3 percent) and an improvement in  adjusted
earnings per preferred share of around 10 percent. This  guidance  is  based  on
increases achieved in Henkel´s selling prices and the ongoing adaptation of  its
structures  to  the  constantly  changing  market  conditions.   Through   these
activities and the maintenance of its strict cost discipline, Henkel intends  to
more than offset the effect on its earnings arising from increased raw  material

This document  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,
forecast and similar formulations. 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 forward-looking statements.


Lars Witteck                            Wulf Klüppelholz
Tel.  +49 211 797 - 2606                Tel. +49 211 797 - 1875
Fax   +49 211 798 - 4040                Fax  +49 211 798 - 4040

Henkel AG & Co. KGaA

The report for the third quarter of 2011 and other information with download
material and the link to the teleconference broadcast can be found in our press
folder on the internet at: http://www.henkel.com/press/publication-report-q3-


Further inquiry note:
Irene Honisch
Tel.: +49 (0)211 797-5668
E-Mail: irene.honisch@henkel.com

end of announcement                               euro adhoc 

company:     Henkel AG & Co. KGaA
             Henkelstr. 67
             D-40191 Düsseldorf
phone:       +49 (0)211 797-0
FAX:         +49 (0)211 798-4008
WWW:      http://www.henkel.com
sector:      Consumer Goods
ISIN:        DE0006048432, DE0006048408
indexes:     DAX, CDAX, HDAX, Prime All Share
stockmarkets: regulated dealing/prime standard: Frankfurt, free trade: Hamburg,
             Stuttgart, Düsseldorf, Hannover, München, regulated dealing: Berlin 
language:   English

Weitere Meldungen: Henkel AG & Co. KGaA

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