In its first quarter of
2009, Henkel increased sales compared
to the prior-year quarter by 3.1% to 3,258 million euros. The rise is
attributable to Henkel’s acquisition of the National Starch businesses in April
2008. In organic terms, or adjusted
for foreign exchange and acquisitions/divestments, sales decreased by 7.0% in a
difficult overall market environment. After adjusting for foreign exchange, the
increase in sales amounted to 3.8%. Business development at the company’s three
business sectors was very mixed. While the consumer goods business sectors
Laundry & Home Care and Cosmetics/Toiletries continued to perform very
well, with organic growth rates of 0.4% and 3.5%, respectively, the Adhesive
Technologies business sector suffered from the challenges encountered in major
customer industries worldwide. This was reflected in
an organic decline in sales of 18.2%.
Due primarily to the
significant decrease in earnings at the Adhesive Technologies business sector, operating profit (EBIT) fell by 31.7%
from 320 million euros in the first quarter of 2008 to 218 million euros. After adjusting for one-time gains/charges and
restructuring charges, adjusted operating profit (“adjusted EBIT”) decreased by
26.1% from 318 million euros in the prior-year quarter to 235 million euros.
The EBIT margin amounted to 6.7%, while the adjusted EBIT margin declined
from 10.1% to 7.2%. Both results are largely attributable to the significant
decrease in profits at the Adhesive Technologies business sector.
As a result of the sale of
Henkel’s stake in Ecolab in November 2008, the investment result fell from 19
million euros to 0 euros. Net interest expense increased by 14 million euros
from -38 million euros to -52 million euros. This is primarily due to higher
net debt arising from the financing of the purchase price for the acquisition
of the National Starch businesses. The financial
result consequently decreased further, from -19 million euros to -52
million euros. The tax rate amounted to 27.1%.
For more information, visit www.henkel.com/ir