--------------------------------------------------------------------------------
Corporate news transmitted by euro adhoc. The issuer/originator is solely
responsible for the content of this announcement.
--------------------------------------------------------------------------------
Financial Figures/Balance Sheet
Düsseldorf (euro adhoc) - November 16, 2012
Henkel reports strongest quarterly performance to date
Henkel fully committed to achieving 2012 targets
- Sales rise 6.6 percent to 4,294 million euros (organic: + 2.5%)
- Adjusted* operating profit: + 16.7 percent to 631 million euros
- Adjusted* EBIT margin: + 1.3 percentage points to 14.7 percent
- Adjusted* earnings per preferred share (EPS): + 16.5 percent to 0.99
euros
- Sales share of emerging markets increased to 44 percent
- Free cash flow up more than 50 percent, net debt substantially reduced
- 2012 targets reconfirmed
Düsseldorf - "Although the market environment became more difficult in the
third quarter of 2012, Henkel continued its strong performance with key
financials reaching record levels. We generated profitable growth in all our
business sectors and realized another substantial increase in our EBIT margin -
reaching an all-time high. Our performance is based on our clear commitment to
our strategic priorities. We are well on track and fully committed to achieving
our targets for full fiscal 2012," said Henkel CEO, Kasper Rorsted.
"We expect that the volatility and uncertainties in our markets will persist.
Hence, we will continue to adapt and improve our processes and structures,"
Rorsted added.
Guidance for 2012 reconfirmed
"Based on our strong performance in the first nine months, we are fully
committed to 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.
And we continue to expect growth in adjusted earnings per preferred share of
around 15 percent," Rorsted said.
Henkel's sales in the third quarter of 2012 were 4,294 million euros, an
increase of 6.6 percent compared to the figure for the prior-year quarter.
Organic sales, which exclude the impact of foreign exchange and
acquisitions/divestments, rose by 2.5 percent.
All three business sectors contributed to this performance: Laundry & Home Care
posted solid organic growth of 4.6 percent. The Beauty Care business sector
likewise achieved solid organic sales growth amounting to 3.3 percent. And the
Adhesive Technologies business sector generated positive organic sales growth
of 1.0 percent.
After allowing for one-time gains, one-time charges and restructuring charges,
adjusted operating profit improved by 16.7 percent, from 541 million euros to
631 million euros, with all three business sectors contributing. Reported
operating profit (EBIT) increased from 451 million euros to 586 million euros.
Adjusted return on sales (EBIT margin) increased significantly by 1.3
percentage points, from 13.4 percent to 14.7 percent. Reported return on sales
was 13.6 percent, following 11.2 percent in the comparable prior-year period.
Henkel's financial result was -42 million euros compared to -37 million euros
in the prior-year quarter, the change being due primarily to currency hedging
costs. At 24.8 percent, the tax rate was slightly above the level of the prior-
year quarter (24.2 percent).
Net income for the quarter rose by 30.3 percent, from 314 million euros to 409
million euros. After deducting 12 million euros attributable to non-controlling
interests, quarterly net income amounted to 397 million euros (prior-year
quarter: 307 million euros). Adjusted net income for the quarter after
deducting non-controlling interests was 429 million euros compared to 366
million euros in the prior-year quarter. Earnings per preferred share (EPS)
increased from 0.71 euros to 0.92 euros. The adjusted figure was 0.99 euros
compared to 0.85 euros in the third quarter of 2011.
Further significant 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 1.4 percentage points to 6.6 percent. Net debt also showed a
substantial decrease as of September 30, 2012, down to 612 million euros
(September 30, 2011: 1,570 million euros).
Business performance January through September 2012
In the first nine months of 2012, Henkel achieved a strong increase in sales
compared to the prior-year period of 6.0 percent to 12,508 million euros.
Organic sales also showed solid growth with a rise of 3.7 percent versus the
first nine months of fiscal 2011. Adjusted operating profit increased by 17.3
percent, from 1,528 million euros to 1,791 million euros, with all three
business sectors contributing to the improvement. Adjusted return on sales
(EBIT margin) increased from 12.9 percent to 14.3 percent.
Adjusted net income for the nine months improved by 20.5 percent, from 1,044
million euros to 1,258 million euros. After deducting income of 32 million
euros attributable to non-controlling interests (prior-year period: 21 million
euros), adjusted net income for the nine months was 1,226 million euros (prior-
year period: 1,023 million euros). Adjusted earnings per preferred share (EPS)
rose by 19.4 percent, from 2.37 euros to 2.83 euros.
Business sector performance in the third quarter 2012
The Laundry & Home Care business sector continued its solid sales and earnings
performance also in the third quarter, with all its key financials
substantially exceeding those of the third quarter of 2011. Nominal sales rose
by 7.6 percent to 1,194 million euros, compared to 1,110 million euros in the
prior-year quarter. Organically, sales rose by 4.6 percent.
All regions contributed to the solid sales performance achieved. The emerging
markets again showed the greatest growth momentum, with overall expansion in
the high single-digit range. The increase in sales generated in Latin America
came close to double-digit. Sales in Eastern Europe were also very strong,
supported by double-digit growth rates in Russia and Turkey. A strong increase
in sales was also achieved in the Africa/Middle East region, despite the
political and social unrest in the Middle East. Henkel again posted positive
sales growth in Western Europe, driven in particular by a very strong
performance in France. Within a still weak market environment in the Southern
European Countries, Italy also performed solidly. Sales in North America again
improved despite a still declining market.
Adjusted operating profit rose by a substantial 11.3 percent to 173 million
euros. Adjusted return on sales increased by 0.5 percentage points to 14.5
percent, thus reaching the same high level of the first two quarters of this
year, with ongoing measures to reduce costs and enhance efficiency having a
positive effect. Reported operating profit rose significantly compared to the
prior-year quarter, from 125 million euros to 168 million euros.
The Beauty Care business sector again continued its uptrend in profitable
growth during the third quarter. Nominal sales totaled 908 million euros, 5.6
percent above the 860 million euros generated in the prior-year quarter.
Organic sales rose by 3.3 percent.
As in the preceding quarters, the emerging markets made a particularly
important contribution to Beauty Care's solid sales performance. Asia
(excluding Japan) and the Africa/Middle East region continued to experience
rapid expansion, generating double-digit growth rates. The growth dynamics in
Latin America eased somewhat. Overall, sales in the mature markets increased.
There was solid sales growth in Western Europe, despite the negative economic
conditions and persistently weak market environment. North America developed
very positively with a strong increase in sales compared to the prior-year
quarter. However, the mature markets in the Asia-Pacific region remained below
the level of the third quarter of 2011.
Adjusted operating profit increased by 8.6 percent to 133 million euros. At
14.7 percent, adjusted return on sales improved by 0.4 percentage points
compared to the third quarter of 2011. Reported operating profit totaled 114
million euros compared to 111 million euros in the comparable prior-year
quarter.
The Adhesive Technologies business sector continued its positive sales
development in the third quarter of 2012. Nominal sales rose by 6.6 percent to
2,153 million euros, with organic growth coming in at 1.0 percent.
Overall, the emerging markets contributed to the improvements made with a solid
increase in sales. Particular momentum came from the regions of Asia (excluding
Japan) and Eastern Europe. Sales in Africa/Middle East likewise showed a solid
development. By contrast, sales in Latin America fell slightly below the level
of the prior-year quarter. Sales in Western Europe likewise declined. Here,
Henkel was unable to completely offset the effects of the negative economic
conditions prevailing - particularly those encountered in the countries of
Southern Europe. On the other hand, the businesses in North America posted a
solid increase in sales overall.
Adjusted operating profit again increased by a substantial 18.3 percent to 345
million euros. Adjusted return on sales improved by 1.6 percentage points,
reaching 16.0 percent for the first time. Compared to the prior-year quarter,
reported operating profit rose by 29.5 percent to 329 million euros.
Regional performance
In a highly competitive market environment, sales in the Western Europe region,
which accounts for around one third of total sales, amounted to 1,423 million
euros, matching the level of the prior-year quarter. Organically, sales
decreased slightly, by 0.8 percent, attributable primarily to the recessive
trend in economic activity prevailing in Southern Europe. Sales in the Eastern
Europe region rose by 6.5 percent to 825 million euros. Organic growth came in
at 4.3 percent, with the company's businesses in Turkey and Russia making a
major contribution. Sales in the Africa/Middle East region rose by 12.2
percent to 265 million euros. Organic sales growth was 6.3 percent, with all
the company's business sectors contributing.
Sales of the North America region rose by 13.0 percent to 790 million euros.
Organically, sales grew by 2.8 percent despite a reluctant consumer climate. At
272 million euros, sales in the Latin America region remained roughly at the
prior-year level. Organic sales growth amounted to 1.5 percent, with business
performance in Mexico making a particularly important contribution. The Asia-
Pacific region registered sales growth of 16.1 percent to 680 million euros. In
organic terms, sales rose by 6.6 percent, driven in particular by double-digit
growth in China.
Sales growth was again given a major boost by the emerging markets of Eastern
Europe, Africa/Middle East, Latin America and Asia (excluding Japan), where
sales rose by 10.1 percent to 1,885 million euros. Organic sales rose by 5.9
percent. The share of sales attributable to the emerging markets increased from
43 percent of consolidated sales in the prior-year quarter, to 44 percent.
Sales and earnings forecast 2012
Henkel continues to expect organic sales growth of between 3 and 5 percent for
full fiscal 2012. Henkel is confident of continuing the positive growth path
exhibited 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). In its report for the second
quarter, Henkel specified its guidance for the increase in adjusted earnings
per preferred share (2011 figure: 3.14 euros) with a revised expectation since
then of around 15 percent (previously: at least 10 percent).
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 third quarter of 2012 and other information with download
material and the link to the press conference broadcast can be found in our
press folder on the internet at:
http://www.henkel.com/presskit-q3-2012
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
--------------------------------------------------------------------------------
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