Adhesives & Sealants Headlines

Henkel Reports Increased Second Quarter Sales and Earnings

Henkel reported that, in the second quarter of 2010, the company generated sales of 3,890 million euros (approximately $5,144 million). In a stabilizing market environment, this was an increase of 11.6% compared to the prior-year quarter. After adjusting for foreign exchange, sales improved by 6%.

Organically (i.e., after adjusting for foreign exchange and acquisitions/divestments), an additional 6.8% sales increase was achieved compared to the prior-year quarter. The positive development, which follows strong sales growth in the first quarter of 2010, was driven by the Adhesive Technologies and Cosmetics/Toiletries business sectors. With a 13.6% increase, Adhesive Technologies again achieved a double-digit organic growth rate.

“Following a very good start to fiscal 2010, we have now seen our operations continue their successful development in the second quarter, with our Adhesive Technologies and Cosmetics/Toiletries business sectors making a particularly strong contribution,” said Kasper Rorsted, chairman of the Henkel Management Board. “In addition, the share of sales generated within the growth regions reached 41%. Our excellent performance in the second quarter was once again due to our strong brands and successful innovations. However, our continuing focus on implementing more efficient structures, stricter cost management, and the progress made in the pursuit of our strategic priorities have also contributed substantially to the very good results achieved. As a consequence, we are now looking forward to an improvement of more than 25% in earnings vs. 2009."

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