BERLIN — Amid a reduced earnings outlook for 2010, Beiersdorf AG has announced a series of strategic and personnel changes, including scaling back its makeup businesses in Europe.
The maker of Nivea, Eucerin and La Prairie said Friday it expects 2010 margins for earnings before interest and taxes to be approximately 9 percent, a drop from previous guidance of 11 percent. In addition, sales growth has also been reduced to an expected 2 to 3 percent, with the firm’s consumer business segment anticipating sales growth of 1 to 2 percent and an EBIT margin of 8 to 9 percent.
Approximately 270 million euros, or $357.9 million at current exchange, in additional costs are expected leading up to fiscal 2010; of that amount, 120 million euros, or $159 million, will likely be incurred in fiscal year 2010, the company stated.
The Hamburg-based company plans to refine its focus on skin care, streamlining its product range and withdrawing from the decorative cosmetics market in Germany. Other local affiliates may decide independently if they wish to continue their makeup businesses. Sales effects will be offset by innovative product launches, the firm contended.
Beiersdorf’s chief financial officer, Bernhard Düttmann will step down after 21 years at the company early next year. He will be succeeded by Ulrich Schmidt, who heads Beiersdorf’s Southeast European business Jan. 1.
Beiersdorf also named Umit Subasi executive board member for emerging markets, a new seat he’ll take March 1. Subasi was most recently responsible for SC Johnson’s Central, Northern and Eastern European concerns.
At Beiersdorf, he will oversee the company’s business in Latin America, India, Africa, the Middle East, Turkey, Russia, Ukraine and other countries in the region. Last month, the company said it established an independent affiliate in Vietnam, with the aim of doubling turnover there by 2015.
“Implementing the package of measures and investments will make Beiersdorf even more competitive and more profitable,” stated Thomas-B. Quaas, chairman of Beiersdorf’s executive board. “We have laid key foundations to safeguard the company’s long-term future.”
Beiersdorf’s stock closed down 5.17 percent on Friday to 43.97 euros, or $58.28.
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