Henkel AG & Co. KGaA announces preliminary figures for third quarter 2009. The positive development of Henkel’s consumer businesses in previous quarters continued during the third quarter of 2009. There was also a further improvement in the results of the Adhesive Technologies business sector, albeit on a significantly lower level than in the previous year.
The following preliminary figures exceed the consensus estimates of the analysts as known to Henkel at the current time.
According to preliminary figures, Henkel generated sales in the third quarter of 2009 amounting to around 3.49 billion euros. In the prior-year quarter, sales came in at 3.76 billion euros. In organic terms, that is to say adjusted for foreign exchange and acquisitions/divestments, sales decreased by 2.5 percent compared to the level of the prior-year quarter. Operating profit (EBIT) amounted to 290 million euros. Included in this figure are one-time charges and restructuring charges of 95 million euros. After adjusting for these items, adjusted operating profit (“adjusted EBIT”) fell slightly from 391 million euros to 385 million euros.
At around 1.04 billion euros, sales of the Laundry & Home Care business sector were just below the level of the prior-year quarter. Organic sales growth was 2.4 percent. Operating profit (EBIT) increased from 117 million euros to 137 million euros. Having generated slightly lower sales of around 760 million euros and organic sales growth of 3.7 percent, the Cosmetics/Toiletries business sector posted an improved operating profit (EBIT) of 100 million euros compared to 96 million euros in the same quarter of the previous year.
Due to the volume declines suffered by major customer industries, the Adhesive Technologies business sector registered a decrease in sales to some 1.63 billion euros. In organic terms, sales decreased by 7.6 percent. Operating profit (EBIT) declined from 169 million euros to 89 million euros. Adjusted operating profit amounted to 150 million euros.
The earnings development in the third quarter reflects both the stabilization in Henkel’s markets and programs on structural and cost alignment. However, it can not be expected to again achieve the strong past quarter results in the fourth quarter.
Henkel will be publishing precise figures on the third quarter performance and the outlook in its quarterly report, which is due to come out on November 11, 2009.
Abbreviation for “Kommanditgesellschaft auf Aktien.” A KGaA is a company with a legal identity (legal entity) in which at least one partner has unlimited liability with respect to the company’s creditors (personally liable partner, aka general partner), while the liability for such debts of the other partners participating in the share-based capital stock is limited to their share capital (limited shareholders).
Financial Glossary SchließenAbbreviation for Earnings Before Interest and Taxes. Standard profit metric that enables the earning power of the operating business activities of a company to be assessed independently of its financial structure, facilitating comparability between entities where these are financed by varying levels of debt capital.
Financial Glossary SchließenEarnings Before Interest and Taxes (EBIT) adjusted for exceptional items in the form of one-time expenses and income, and for restructuring expenses.
Financial Glossary SchließenGrowth in sales after adjusting for effects arising from acquisitions, divestments and foreign exchange effects – i.e. “top line” growth generated from within. Also excluded from the calculation are the effects arising from the application of IAS 29 (Financial Reporting in Hyperinflationary Economies) for Türkiye.
Financial Glossary Schließen