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Abonner Henkel KGaA

Henkel KGaA

Increase in dividends proposed Henkel increases sales and profits

Düsseldorf (euro adhoc) -

•	Sales up 2.6 percent to 13.07 billion euros   
•	Organic sales growth of 5.8 percent     
•	Operating profit (EBIT): up 3.5 percent to 1,344 million euros    
•	Net earnings for the year: up 8.0 percent to 941 million euros
  ots.CorporateNews transmitted by euro adhoc. The issuer is responsible for
  the content of this announcement.
finances/Henkel
"Once again, we achieved a good performance
in 2007. Our organic sales growth and further increase in profits 
were encouraging. All our business sectors contributed to this 
success and we maintained sales momentum in our growth regions," 
commented Ulrich Lehner, Chairman of the Management Board of Henkel 
KGaA. "These results demonstrate the effectiveness of our strategy of
focusing on our core businesses while striving for innovation 
leadership in each of our markets."
Düsseldorf - Today Henkel published its annual report for fiscal 
2007. Sales increased by 2.6 percent to 13,074 million euros, with 
all the company´s business sectors contributing. Organic sales, i.e. 
sales after adjusting for foreign exchange and 
acquisitions/divestments, were increased by 5.8 percent.
Operating profit (EBIT) increased by 3.5 percent to 1,344 million 
euros, thus outstripping sales growth. After adjusting for foreign 
exchange, the increase was 5.8 percent, again with all the business 
sectors contributing. Return on sales (EBIT) increased by 0.1 
percentage points to 10.3 percent. After adjusting for exceptional 
gains and restructuring charges, operating profit (EBIT) rose by 8.2 
percent to 1,370 million euros with the corresponding return on sales
figure improving 0.6 percentage points to 10.5 percent.
Net financial result improved by 28 million euros to -94 million 
euros, due primarily to the absence of the impairment loss of 26 
million euros incurred in the previous year from our participation in
Lion Corporation which was sold in November 2006. At 24.7 percent, 
the tax rate was 1.2 percentage points below the level of the 
previous year.
Net earnings for the year increased by 8.0 percent to 941 million 
euros. After deducting minority interests of 20 million euros, net 
earnings were 921 million euros (+7.7 percent). Earnings per 
preferred share increased from 1.99 euros to 2.14 euros (+7.5 
percent).
Capital expenditures on property, plant and equipment in 2007 totaled
470 million euros, and free cash flow amounted to 769 million euros. 
Net working capital was reduced by 1.8 percentage points to 11.5 
percent of sales.
In view of the earnings performance, the Management Board, the 
Supervisory Board and the Shareholders´ Committee will be proposing 
to the Annual General Meeting that it approve an increase in 
dividends from 0.50 euros to 0.53 euros per preferred share and from 
0.48 euros to 0.51 euros per ordinary share.
Business Sector Performance
Sales of the Laundry & Home Care business sector increased by 0.8 
percent to 4,148 million euros, despite the divestment of a number of
marginal businesses in the past fiscal year. Organic sales growth was
5.5 percent, generated primarily in the Europe/Africa/Middle East 
region, with the highest growth rates occurring in Eastern Europe. In
Western Europe, particularly the "Best Ever" campaign, initiated both
to celebrate the Persil centennial and to relaunch the company´s 
other premium European detergent brands, yielded positive results. 
Operating profit rose by 2.1 percent to 459 million euros, and by 4.5
percent after adjusting for foreign exchange. Growth in the Laundry 
segment was mainly driven by sales of heavy-duty detergents and 
fabric softeners. The Persil centennial activities contributed 
particularly to the good development of the heavy-duty detergents 
business. Henkel´s most important detergent brand was again improved 
in terms of performance, fragrance experience and design esthetics. 
The fabric softener brands Vernel and Silan benefited noticeably from
the successful introduction of further new fine fragrances. Major 
contributions to the good sales performance of the Home Care business
were made by the dishwashing and WC products. The results posted in 
the machine dishwashing sector were boosted by innovations such as 
Somat 7 which, in addition to the functions of Somat 5, also contains
a cleaning booster and an activator for improved results at low 
temperatures.  Hand dishwashing detergents continued their good 
development in Europe; especially in the growth regions.
Sales of the Cosmetics/Toiletries business sector reached a new 
record high, above market volume, with organic sales growth of 5.8 
percent. Before adjusting for foreign exchange and the sale of the 
Morris fine fragrance business, sales increased nominally by 3.7 
percent to 2,972 million euros, with business in Western Europe 
growing substantially faster than that of the overall market. 
Double-digit percentage growth rates were again achieved in Eastern 
Europe. The Middle East and Latin America regions likewise generated 
sales increases. Sales performance in North America was characterized
by expansion of the Dial business and the successful integration of 
the Right Guard brands portfolio. Operating profit improved by 3.8 
percent to 372 million euros, and by 6.6 percent after adjusting for 
foreign exchange. The Hair Cosmetics business posted a substantial 
increase in sales with market share expanding to new record levels. 
This performance was driven by our top brands in our strategic 
business units Colorants, Hair Care and Styling which attracted 
further market interest with numerous new product launches. Among the
newcomers were the Brillance Fashion Collection in the colorants 
business, the extension of the Palette line by Golden Gloss Browns, 
and Men Perfect, the first men´s colorant from Schwarzkopf. The Body 
Care business likewise continued to perform well, supported in 
particular by the ongoing success of the innovation offensive driving
the two major brands Fa and Dial. Right Guard also made significant 
inroads into the US deodorant market. The Skin Care business profited
from the success of its most important brand, Diadermine, with its 
anti-age innovations and the new premium line Diadermine Age 
ExCellium, enabling it to expand its market positions across Europe. 
In the Oral Care segment, the focus was on the new freshness variants
of Theramed 2in1 and the international launch of Theramed Titan 
Fresh. In the Hair Salon business, which holds the number 3 position 
worldwide, the emphasis was on the care series Bonacure, the relaunch
of the exclusive hair care brand SEAH, and the introduction of 
BlondMe, the first fully comprehensive concept comprising coloration,
care and styling components for the individual blonde.
Sales of the Adhesives Technologies business sector increased by 3.6 
percent to 5,711 million euros. Organic sales rose by 6.5 percent 
with the result that 2007 again saw us grow faster than the market. 
Major revenue increases were posted in Eastern Europe, Africa/Middle 
East, Latin America and Asia-Pacific. While good growth was also 
achieved in Western Europe, sales in North America were below the 
level of the previous year due to prevailing market conditions. 
Operating profit rose to 621 million euros, 7.3 percent above the 
level of the previous year, while profit growth after adjusting for 
foreign exchange amounted to 10.4 percent. Sales of the Craftsmen and
Consumer business again slightly increased with the power and 
assembly adhesives of the international Pattex brand as the primary 
growth drivers. Loctite instant adhesives continued to perform very 
well. The Building Adhesives segment realized the strongest growth, 
with Eastern Europe once again generating much of the momentum. With 
newly established production facilities, the company succeeded in 
meeting the rapidly growing demand for its products. Aside from the 
tile adhesives and waterproofing products of the Ceresit brand, 
product systems for the thermal insulation of buildings also 
exhibited dynamic growth. The Industry business segment likewise 
continued to grow successfully, supported in particular by market 
developments in Asia-Pacific, Eastern Europe and Latin America. The 
highest growth rates were achieved in the electronics sector, which 
benefited from the boom in memory modules and the trend toward 
inexpensive mobile phones, and in the industrial maintenance, repair 
and overhaul business under the Loctite brand. Despite the weakness 
of the US automotive market, the associated Henkel business underwent
worldwide expansion thanks in major part to its innovative adhesives 
and sealants marketed under the Teroson brand, designed to increase 
crash safety while reducing noise and weight.
Regional Performance
In the regional breakdown, Europe/Africa/Middle East showed a 
significant increase in sales of 5.4 percent to 8,480 million euros, 
with all the business sectors contributing. After adjusting for 
foreign exchange, the increase was 6.0 percent. The growth posted by 
Eastern Europe and Africa/Middle East was above average, and sales in
Western Europe including Germany were also increased. Organic sales 
growth amounted to 7.4 percent. Overall, the region´s share of total 
sales increased from 63 to 65 percent. Due to adverse foreign 
exchange rate movements, sales in the North America region fell by 
6.8 percent to 2,557 million euros. After adjusting for foreign 
exchange, sales increased by 1.4 percent, while organic growth 
amounted to 0.7 percent, the main contribution coming from the 
Cosmetics/Toiletries business sector. The region´s share of total 
sales was 20 percent. The Latin America region recorded an increase 
in sales of 4.3 percent to 691 million euros. Adjusted for foreign 
exchange, the region´s sales rose by 9.4 percent with organic growth 
at 7.7 percent, with all the business sectors contributing to the 
improvement. The region´s share of total sales remained unchanged at 
5 percent. Business results in the Asia-Pacific region were similarly
positive with sales rising by 6.0 percent to 1,103 million euros, and
by 9.7 percent after adjusting for foreign exchange. Organic sales 
growth amounted to 7.7 percent. The Adhesives Technologies business 
sector in particular was able to benefit from the strong growth 
dynamics of the region, which again accounted for 8 percent of total 
sales.
Henkel´s performance in the growth regions of Eastern Europe, Africa,
Middle East, Latin America and Asia (excluding Japan) was again good 
with an above-average increase in sales of 12.4 percent to a total of
4,388 million euros, to which all the business sectors again 
contributed. After adjusting for foreign exchange, total sales growth
amounted to 15.3 percent and organic sales rose by 15.1 percent.
Fourth quarter 2007
Sales for the fourth quarter amounted to 3,186 million euros. Organic
sales growth was 3.8 percent. At 323 million euros, operating profit 
maintained the high level of the previous year. After adjusting for 
exceptional gains and restructuring charges, EBIT came in at 325 
million euros, 2.2 percent above the prior-year. Net earnings for the
quarter were increased by 11.8 percent to 247 million euros; earnings
per preferred share rose by 6 eurocents to 0.57 euros (+11.8 
percent).
Major Participation
Ecolab Inc., St. Paul, Minnesota, USA, in which Henkel holds a 29.5 
percent stake, reported sales of 5,470 million US dollars for fiscal 
2007, an increase of 11.7 percent compared to the previous year. Net 
earnings for the year rose by 15.9 percent to 427 million US dollars.
The market value of this participation as of December 31, 2007 was 
2,529 million euros (previous year: 2,495 million euros).
Outlook
Henkel intends once again to grow stronger than its markets and 
expects to achieve organic sales growth (i.e. after adjusting for 
foreign exchange and acquisitions/ divestments) of 3 to 4 percent in 
2008.
adjusted for
foreign exchange - in excess of organic sales growth.
Henkel likewise expects an increase in earnings per preferred share 
(EPS) in excess of organic sales growth.
This outlook does not take into account the effects of the planned 
acquisition of the Adhesives and Electronic Materials businesses of 
National Starch.
This information contains forward-looking statements which are based 
on the current estimates and assumptions made by the corporate 
management of Henkel KGaA. Forward-looking statements are 
characterized by the use of words such as expect, intend, plan, 
predict, assume, believe, estimate, anticipate, etc. 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 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 any forward-looking 
statements.
Henkel KGaA
Head of Corporate Communications
Ernst Primosch, Corporate Vice President
Press Contact:
Henkel Corporate Communications
Lars Witteck                            Wulf Klüppelholz
Phone: +49-211-797-2606                 Phone: +49-211-797-1875
Fax: +49-211-798-9208                   Fax: +49-211-798-9208
press@henkel.com
Photo material for download available at http://henkel.com/press
Further detailed information on the facts and figures for the full 
year 2007 can be found at: http://henkel.com/ir
end of announcement                               euro adhoc

Further inquiry note:

Wulf Klüppelholz
Tel.: +49 (0)211 797-1875
E-Mail: wulf.klueppelholz@henkel.com

Branche: Consumer Goods
ISIN: DE0006048408
WKN: 604840
Index: DAX, CDAX, HDAX, Prime All Share
Börsen: Börse Frankfurt / regulated dealing/prime standard
Börse Hamburg / free trade
Börse Stuttgart / free trade
Börse Düsseldorf / free trade
Börse Hannover / free trade
Börse München / free trade
Börse Berlin / regulated dealing

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