BERLIN — Second-quarter net profits at German cosmetics and household products company Henkel surged 257 percent to 150 million euros, or $204.3 million at average exchange, primarily because of restructuring charges that had affected the company’s net earnings in the year-ago period.
This story first appeared in the August 6, 2009 issue of WWD. Subscribe Today.
Earnings before interest and taxes rose 145 percent to 279 million euros, or $380 million. However, after adjusting for onetime gains and restructuring and other charges, EBIT decreased 17.2 percent to 308 million euros, or $419.5 million.
Sales at the Düsseldorf-based firm declined 5 percent to 3.49 billion euros, or $4.75 billion, mainly because of volume decreases in the adhesives sector.
Henkel’s cosmetics and toiletries business, however, continued to perform positively in the second quarter of 2009.
The division’s EBIT rose 2.8 percent to 100 million euros, or $136.2 million, and sales inched up 1.5 percent to 790 million euros, or $1.08 billion, in the quarter.
After adjusting for foreign exchange, the cosmetics and toiletries division saw EBIT gain 4.2 percent and sales rise 2.4 percent in the quarter. Henkel said its hair cosmetics segment expanded market positions in all categories, and noted hair care and colorants performed particularly well. Dial was the star in the body care segment in the U.S., and Fa strengthened its performance in Europe.
Henkel did not make a full-year forecast because of uncertainty regarding the global economy. For the third quarter, however, Henkel said it expects its consumer businesses “to continue to perform well — albeit with a degree of deceleration.”
Henkel shares Wednesday closed up 3.3 percent to 26.34 euros, or $37.93.