Outlook for the Henkel Group
We expect the Henkel Group to generate organic sales growth of between 3 and 5 percent in fiscal 2013. We are confident that each business sector will grow within this range.
Starting point for this is our strong competitive position, which we will continue to consolidate and foster through our innovative strength, our strong brands, our leading market presence and the quality of our portfolio. Our market position and adaptation of our structures to constantly changing market conditions, coupled with the expected increase in sales, will have a positive impact on our earnings performance.
Henkel further specifies its guidance for adjusted return on sales (EBIT) from about 14.5 percent to about 15 percent (2012: 14.1 percent) and assumes that all business sectors will contribute to the increase over the prior year. We maintain our expectation for an increase in adjusted earnings per preferred share of about 10 percent (2012: 3.70 euros).
We also continue to expect the following developments in 2013:
- Prices for raw materials, packaging and purchased goods and services stable year on year (previously: moderate increase)
- Restructuring charges of around 125 million euros
- Investments in property, plant and equipment of around 450 million euros (previously: around 500 million euros)
We announced our new strategy and financial targets for 2016 in November 2012. We are confident that, by rigorously implementing our strategic priorities, we will be able to continue our growth trend in sales and profits in 2014. We plan to advance cash flow from operating activities in line with sales. Capital expenditures are scheduled to remain high. Net debt development will be influenced by our acquisition activity. We will publish specific financial targets for 2014 in our 2013 annual report.