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Financial Figures/Balance Sheet
Düsseldorf (euro adhoc) - August 1, 2012
Good performance continued through second quarter 2012
Henkel reports strong increase in sales and earnings
- Sales rise 6.4 percent to 4,206 million euros (organic: + 4.0%)
- Adjusted* operating profit: + 18.6 percent to 609 million euros
- Adjusted* EBIT margin: + 1.5 percentage points to 14.5 percent
- Adjusted* earnings per preferred share (EPS): + 22.8 percent to 0.97
euros
- Emerging markets again primary success drivers (organic sales: + 8.1%)
- Targets for 2012 confirmed; EPS growth outlook raised from at least 10
percent to around 15 percent
Düsseldorf - "Henkel continued its good performance in the second quarter,
despite a difficult market environment. We generated profitable growth in all
our business sectors and posted a substantial increase in our EBIT margin,"
said Henkel CEO Kasper Rorsted. "The solid results achieved in the second
quarter also reflect our persistent focus on our strategic priorities. We have
thus taken an important step towards achieving our targets for 2012."
Looking at the full fiscal year 2012, Rorsted said: "We expect that the very
volatile environment with uncertainties in our markets will persist. In
particular, the effects of the debt and financial crises in a number of
countries will continue to be a challenge. Hence, we will continue to analyze,
adapt and further improve our processes and structures."
Guidance for 2012 confirmed - Outlook for EPS growth raised
"Based on our solid performance in this first half year, we are confident of
achieving our targets for 2012. We expect organic sales growth to be between 3
and 5 percent and to increase adjusted EBIT margin to 14 percent. For adjusted
earnings per preferred share, we have raised our growth outlook from at least
10 percent to around 15 percent," Rorsted added.
Henkel's sales in the second quarter of 2012 were 4,206 million euros, an
increase of 6.4 percent compared to the figure for the prior-year quarter.
Organic sales, which exclude the impact of foreign exchange and
acquisitions/divestments, rose by 4.0 percent, a solid increase compared to the
prior-year quarter.
All three business sectors contributed to this positive development: Laundry &
Home Care registered strong organic growth of 5.1 percent; organic sales growth
at the Cosmetics/Toiletries business sector reached a solid 2.8 percent; and
the Adhesive Technologies business sector also generated solid organic sales
growth amounting to 3.6 percent.
After allowing for one-time gains, one-time charges and restructuring charges,
adjusted operating profit improved by 18.6 percent, from 514 million euros to
609 million euros, with all three business sectors contributing. Reported
operating profit (EBIT) increased by 8.5 percent, from 537 million euros to 583
million euros.
Adjusted return on sales (EBIT margin) increased significantly by 1.5
percentage points, from 13.0 percent to 14.5 percent. Reported return on sales
was 13.9 percent, following 13.6 percent in the comparative prior-year period.
The company's financial result improved versus the prior-year quarter by 6
million euros to -35 million euros. At 24.8 percent, the tax rate was slightly
above the level of the previous year (24.4 percent).
Net income for the quarter rose by 9.9 percent, from 375 million euros to 412
million euros. After deducting 11 million euros attributable to non-controlling
interests, quarterly net income amounted to 401 million euros (prior-year
quarter: 366 million euros). Adjusted quarterly net income after deducting non-
controlling interests amounted to 420 million euros compared to 343 million
euros in the prior-year quarter. Earnings per preferred share (EPS) rose from
0.85 euros to 0.92 euros. The adjusted figure was 0.97 euros compared to 0.79
euros in the prior-year quarter.
Further good progress was made in the management of net working capital.
Compared to the prior-year period, the ratio of net working capital to sales
improved by 0.9 percentage points to 7.5 percent. Net debt was reduced to 1,269
million euros as of June 30, 2012 (June 30, 2011: 1,959 million euros).
Business performance January through June 2012
In the first six months of fiscal 2012, Henkel increased sales versus the prior-
year period by a strong 5.6 percent to 8,214 million euros. Organic sales also
showed solid growth of 4.3 percent versus the first half of 2011. Adjusted
operating profit rose by 17.6 percent, from 987 million euros to 1,160 million
euros, with all three business sectors contributing to the positive
performance. Adjusted return on sales (EBIT margin) improved from 12.7 percent
to 14.1 percent.
Net income for the half year rose by 21.8 percent, from 671 million euros to
817 million euros. After deducting 20 million euros attributable to non-
controlling interests, quarterly net income amounted to 797 million euros
(prior-year period: 657 million euros). Adjusted earnings per preferred share
(EPS) rose by 21.1 percent, from 1.52 euros to 1.84 euros.
Business sector performance second quarter 2012
The Laundry & Home Care business sector continued its strong sales and earnings
performance in the second quarter, with all its key financials outstripping
those of the second quarter of 2011. Nominal sales rose by 6.6 percent to 1,147
million euros, compared to 1,076 million euros in the prior-year quarter.
Organically, sales rose by 5.1 percent.
All regions contributed to the strong sales performance achieved. The greatest
impetus again came from the emerging markets, which achieved double-digit
growth rates overall, with Africa/Middle East and Latin America posting the
highest growth rates. Sales in Eastern Europe were also very strong, supported
in particular by a double-digit rate of growth in Russia and Turkey. Following
a slight decrease in sales in the first quarter, the company returned to
positive sales growth in Western Europe against a still weak market environment
in the Southern European countries and a persistently high level of competitive
intensity. Sales in North America increased despite a further contraction in
the market.
Adjusted operating profit increased significantly - by almost 20 percent - to
167 million euros, while adjusted return on sales improved by 1.5 percentage
points to 14.5 percent, with ongoing measures to reduce costs and enhance
efficiency having a positive effect. Reported operating profit totaled 153
million euros compared to 157 million euros in the comparative prior-year
quarter.
The Cosmetics/Toiletries business sector continued its uptrend in profitable
growth during the second quarter. Nominal sales totaled 921 million euros, 4.5
percent above the 881 million euros generated in the prior-year quarter.
Organic sales rose by 2.8 percent.
Growth was supported by all regions, albeit with the emerging markets
continuing to show the strongest dynamics. The regions of Africa/Middle East
and Asia (excluding Japan) delivered double-digit growth rates, with sales in
Eastern Europe and Latin America likewise developing positively. Bucking the
adverse economic conditions prevailing in the mature markets, the company
generated solid sales growth in Western Europe and also posted a positive sales
performance in North America.
Adjusted operating profit increased by 7.1 percent to 133 million euros. At
14.4 percent, adjusted return on sales rose by 0.3 percentage points compared
to the second quarter of 2011. Reported operating profit was at 131 million
euros following 140 million euros in the prior-year quarter, this latter figure
having included a one-time gain from the disposal of the branded consumer goods
business in India.
The Adhesive Technologies business sector again succeeded in increasing its
sales in the second quarter of 2012, accompanied by a further substantial
improvement in earnings. Nominal sales rose by 6.9 percent to 2,099 million
euros, with organic growth coming in at 3.6 percent.
The emerging markets provided important impetus for the solid sales increase
achieved, with good, above-average sales being posted in the regions of Eastern
Europe and Africa/Middle East particularly. In Western Europe, sales were
slightly below the level of the prior-year quarter, due primarily to adverse
market conditions in Southern Europe. By contrast, the strong growth posted
once again by the businesses in North America made a major contribution to the
rise in sales.
Adjusted operating profit again increased by a substantial 18.7 percent to 330
million euros. Adjusted return on sales improved by 1.5 percentage points,
reaching 15.7 percent for the first time. Compared to the prior-year quarter,
reported operating profit rose by 21.3 percent to 327 million euros.
Regional performance
At 1.425 million euros and with organic growth of -0.1 percent sales in Western
Europe, which account for around one third of total Henkel sales, remained at
the level of the prior year quarter in a highly competitive market environment.
The effects of the growing financial crisis in Southern Europe were offset.
Sales in the Eastern Europe region rose by 5.8 percent to 771 million euros.
Organic growth was 7.9 percent. Among the primary contributors to this
improvement were the company's businesses in Turkey and its adhesives operation
in Russia. Henkel once again generated double-digit organic growth in the
Africa/Middle East region, posting an increase this time of 14.1 percent. The
contribution made here by the Laundry & Home care business was especially
strong. Nominal sales rose by 20.7 percent to 279 million euros, compared to
231 million euros in the comparative prior-year quarter.
Sales in the North America region rose by 13.2 percent to 765 million euros.
Despite a reluctant consumer climate, sales grew organically by 3.8 percent,
driven in particular by the adhesives business. At 270 million euros, sales in
the Latin America region remained roughly at the prior-year level. Organic
sales grew by 3.9 percent, with business development in Mexico making a
particularly important contribution. The Asia-Pacific region registered sales
growth of 11.8 percent to 657 million euros. In organic terms, sales rose by
4.5 percent, driven in particular by growth in China and Indonesia.
Sales growth was again given a particular boost by the emerging markets of
Eastern Europe, Africa/Middle East, Latin America and Asia (excluding Japan)
where sales rose by 9.3 percent to 1,829 million euros. Organic growth was 8.1
percent. The share of sales attributable to these emerging markets increased
from 42 percent of consolidated sales in the prior-year quarter to 43 percent
this time.
Sales and profits forecast 2012
Henkel continues to expect an organic sales growth rate of between 3 and 5
percent for the full fiscal year. Henkel is confident of continuing the
positive growth trend posted by its consumer goods businesses, with organic
sales expected to expand in the low single-digit percentage range. For the
Adhesive Technologies business sector, Henkel expects organic sales to grow in
the mid single-digit percentage range. Henkel confirms its forecast for an
adjusted return on sales (EBIT) of 14 percent (2011: 13.0 percent). The
forecasted increase in adjusted earnings per preferred share (2011 figure: 3.14
euros) has been specified. Henkel now expects an increase of around 15 percent
(previously: at least 10 percent). This guidance is based on anticipated
increases 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 effects of increased raw material costs on its earnings.
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.
Contact
Lars Witteck Wulf Klüppelholz
Tel. +49 211 797 - 2606 Tel. +49 211 797 - 1875
Fax +49 211 798 - 4040 Fax +49 211 798 - 4040
E-mail: lars.witteck@henkel.com E-mail: wulf.klueppelholz@henkel.com
Henkel AG & Co. KGaA
The report for the second quarter of 2012 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-q2-half-year-2012-36162.htm
press@henkel.com
Further inquiry note:
Irene Honisch
Assistent Corporate Communications
Tel.: +49 (0)211 797-5668
E-Mail: irene.honisch@henkel.com
end of announcement euro adhoc
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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: free trade: Hannover, München, Hamburg, Düsseldorf, Stuttgart,
regulated dealing: Berlin, regulated dealing/prime standard:
Frankfurt
language: English