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Henkel Expects 2010 Profit Growth

Fourth-quarter net fell 79.4 percent.

BERLIN–Henkel AG & Co. predicted a rise in operating profit for 2010 and confirmed its preliminary figures for last year. 

The Dusseldorf-based company anticipates both adjusted operating profit and adjusted earnings per preferred share will increase more than 10 percent in 2010.

As reported, Henkel – whose activities include cosmetics and toiletries, laundry and home care and adhesive divisions – posted a 38.6 percent gain in operating profit last year to 1.08 billion euros, or $1.51 billion. Company sales decreased 3.9 percent to 13.57 billion euros, or $18.92 billion. 

Henkel’s cosmetics and toiletries division ended 2009 with a 2.9 percent EBIT gain to 387 million euros, or $537.9 million.   Beauty sales were flat at 3.01 billion euros, or $4.2 billion, and organic revenues increased 3.5 percent. The business was driven by strong performances in Eastern Europe, Africa/Middle East, Latin America and the Asia-Pacific region.  Growth in the hair care and colorants sector came from international launches of the Syoss brand and Schwarzkopf Essential Color.  Henkel’s core body care brands, Fa and Dial, gained market share through several new launches.

Dollar figures are converted at average exchange rates for the period.

Henkel’s total fourth-quarter net profit fell 79.4 percent to 177 million euros, or $262 million. (This reflected a difficult comparison on 2008, when the company sold its Ecolab stake.) Sales were 3.35 billion euros, or $4.96 billion, down 5.5 percent, and Henkel noted an organic revenue increase of  0.6 percent in the period. 

Also in the quarter, Henkel’s cosmetics and toiletries division posted revenue of 736 million euros, or $1.09 billion, down 3 percent.