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government-trade
government-trade

Henkel Profits Slip 1.5 Percent

German firm warns fourth-quarter sales may be weak.

BERLIN – German consumer products giant Henkel AG & Co. reported a slight dip in third-quarter adjusted operating profit, and warned that fourth-quarter results may be weak.

The Düsseldorf–based firm – maker of brands including Schwarzkopf, Dial, Fa and Taft -said sales in the quarter ended Sept. 30 fell 2.5 percent to 3.49 billion euros, or $4.99 billion. That figure, part of preliminary results released late Wednesday, is down from the previous year’s 3.76 billion euros, or $5.38 billion, a decrease of 2.5 percent when adjusted for foreign exchange and acquisitions and divestments.

Operating profit came in at 290 million euros, or $298.9 million. The figure reflects a one-time figure for charges and restructuring of 95 million euros, or $135.9 million, leading to an adjusted operating profit of 385 million euros, or $550.6 million, down 1.5 percent from last year. Dollar figures are converted at average exchange rates for the period.

Henkel’s cosmetic and toiletries division posted an increase in operating profit, up 4.2 percent to 100 million euros, or $143 million.  The company’s adhesives technologies continued to suffer, showing a decline in organic sales of 7.6 percent, and operating profit that almost halved to 89 million euros, or $127.3 million, from 169 million euros, or $241.7 million. 

Henkel’s final third-quarter numbers will be released Nov. 11.