Henkel holds course

16-Aug-2001

In the first half-year 2001, the Henkel Group generated sales of EUR 6.7 billion. This represents an 8.1 percent increase over the previous year's figure (EUR 6.2 billion). Organic growth accounted for 2.5 percent, foreign exchange factors contributed 1.1 percent to the rise in sales, and a net gain from acquisitions and divestments provided a plus of 4.5 percent. At EUR 463 million, operating profit (EBIT) remained at last year's level (EUR 462 million) despite a loss of EUR 28 million caused by the devaluation of the Turkish lira. The return on capital employed (ROCE) was 13.3 percent. Net earnings for the half-year amounted to EUR 260 million. This represents a 6.1 percent increase with respect to last year (EUR 245 million). Earnings per share rose 7.6 percent to EUR 1.69 (previous year: EUR 1.57). Regional developments All business sectors contributed to the increase in European sales including Africa and the Middle East. Operating profit for the region improved despite the economic crisis in Turkey. In the USA and Canada, sales increased above average due to the acquisitions of Dexter (Adhesives) and Atofina (Surface Technologies). The sales increase in Latin America resulted from the takeover of the heavy-duty detergents business of Colgate in Mexico. Sales growth achieved in Asia-Pacific was due to the acquisition of Dexter and good performance from Cosmetics. Development of business sectors The adhesives business sector increased sales by 10.7 percent to EUR 1.6 billion. Operating profit decreased by 16.2 percent to EUR 109 million. This decrease has a number of causes, including the rather sluggish business situation in Germany, the crisis in Turkey, product forgeries in Brazil and the fall in demand in Japan. Sales of consumer and craftsmen adhesives remained at the previous year's level. Pritt and the adhesive tapes business (Manco) in the USA performed well.

Sales of engineering adhesives rose 28.0 percent during the first half-year. This was primarily due to the acquisition of the specialty polymers business of Dexter. There was further organic growth in the existing businesses in Europe and Latin America.

Industrial and packaging adhesives registered strong sales growth of 8.5 percent. Market share gains were achieved in North America and Asia with respect to adhesives for the graphic arts industry and laminating adhesives. Sales of the business sector Cosmetics/Toiletries increased by 7.4 percent to EUR 1.1 billion. Operating profit rose by 6.3 percent to EUR 68 million. Market shares were gained in Germany, Benelux, Italy, Russia and Latin America. The Yamahatsu acquisition, in Japan, contributed 1.1 percent to the rise in sales. The rise in operating profit came from very good performance of the businesses in Germany, Russia and Benelux.

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The brand-name products business produced a 7.1 percent increase in sales for the first half-year. Sales of hair cosmetics rose by 16.3 percent.

The main growth drivers were colorants, which performed particularly well in Japan and continued along their upward growth curve in Europe. The styling and hair care segments likewise showed good sales growth thanks to the launch of further product lines.

Sales in body care increased by 3.0 percent. The Fa brand was additionally strengthened by the launch of the Wellness series.

Sales in facial care products were slightly higher than last year. Diadermine and Aok performed well as a result of new product launches.

Sales in oral care matched the level of the previous year. The innovative tube product Theramed Perfekt was successfully introduced in a number of European countries.

Sales growth (23.1 percent) was mainly driven by heavy-duty detergents, while sales in special detergents fell 1.7 percent with respect to last year...

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