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EANS-News: Henkel AG & Co. KGaA /

Geschrieben am 10-11-2010


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Company Information/quarterly report/9-month report

Düsseldorf (euro adhoc) - Düsseldorf, November 10, 2010

Henkel reports outstanding third quarter results


CEO Kasper Rorsted: "2010 will be an important step to achieving our
2012 targets"


• Sales increase by 13.7 percent to 3,961 million euros
• Organic sales growth of 6.5 percent
• Share of sales of emerging markets: plus 3 percentage points to 42 percent
• Adjusted operating profit: plus 27.0 percent to 517 million euros
• Adjusted EBIT margin: plus 1.3 percentage points to 13.0 percent
• Adjusted earnings per preferred share (EPS): plus 35.6 percent to 0.80
euros

"In the third quarter, we further extended our recent successes with results
even better than the good performance we have shown in recent quarters. This is
the first quarter that we have ever achieved an adjusted EBIT margin of 13
percent," said Kasper Rorsted, Chairman of the Henkel Management Board. "I
would particularly like to emphasize the fact that all our regions and business


sectors made a positive contribution to this success in a
persistently challenging environment. Growth was once again given
major impetus by our strong brands and successful innovations.
However, the adaptation of our cost structures and further
progress in the pursuit of our strategic priorities were also
important contributory factors."

Looking at the current fiscal year as a whole, Rorsted said: "We
expect to achieve an adjusted EBIT margin of well above 12.0
percent for 2010, accompanied by an improvement in adjusted
earnings per preferred share of more than 45 percent. 2010 is
likely to be the most successful fiscal year in our corporate
history, taking us an important step closer to our 2012
financial targets."

In the third quarter of 2010, Henkel posted sales of 3,961 million
euros. In an overall positive market environment, this
represents an increase of 13.7 percent above the level of the
prior-year quarter. After adjusting for foreign exchange, sales
improved by 6.4 percent. Organically, i.e. after adjusting for
foreign exchange, acquisitions and divestments, the increase was
6.5 percent, representing another significant rise versus the
prior-year period. This positive development was supported by
all the company´s business sectors. Following a slight decline in
organic sales development in the second quarter of 2010,
Laundry & Home Care recorded growth of 3.4 percent.
Cosmetics/Toiletries once again substantially outperformed market
growth with an increase of 4.6 percent. With growth of 9.7 percent
driven by both price and volumes, Adhesive Technologies achieved
an almost double-digit improvement versus the prior-year quarter.

Operating profit (EBIT) rose by 73.0 percent, from 290 million
euros to 501 million euros. This is primarily due to the
substantial improvement attained by Adhesive Technologies, which
was able to maintain a significant rate of increase in
earnings. After allowing for one-time gains (10 million euros) and
restructuring charges (26 million euros), adjusted operating profit
improved by 27.0 percent, from 407 million euros to 517 million
euros.

Return on sales (EBIT margin) increased significantly, from 8.3
percent to 12.7 percent. Adjusted return on sales rose from 11.7
percent to 13.0 percent.

The company´s financial result improved from -40 million euros to
-37 million euros due to lower net debt. The tax rate was 26.1
percent.

Thanks to the increase in EBIT, net income for the quarter
rose by 90.6 percent, from 180 million euros to 343 million
euros. After deducting non- controlling interests totaling 6
million euros, net income for the quarter came in at 337 million
euros (prior-year quarter: 172 million euros). Adjusted
quarterly net income after non-controlling interests amounted to
349 million euros compared to 256 million euros in the third quarter
of 2009. Earnings per preferred share (EPS) doubled from 0.39
euros to 0.78 euros. The adjusted figure was 0.80 euros compared
to 0.59 euros in the prior-year quarter.

Good progress was also made in the management of net working
capital. Compared to the prior-year period, the ratio of net working
capital to sales improved by 2.5 percentage points, decreasing to
7.8 percent. Due in particular to the substantial rise in net
income, our debt coverage ratio increased in the period under review
to close to 56 percent.

Business performance January through September 2010

In the first nine months of fiscal 2010, Henkel increased sales
versus the prior-year period by 11.1 percent to 11,363 million euros
within an expanding market environment. After adjusting for foreign
exchange, sales improved by 6.6 percent. At 7.3 percent, organic
sales growth also came in appreciably above the level of the
prior-year period. Operating profit (EBIT) increased by 70.9
percent, from 787 million euros to 1,344 million euros. This was
primarily due to the substantial improvement shown by the
Adhesive Technologies business sector following the heavy impact it
suffered from the crisis in the first half- year 2009. After allowing
for restructuring charges (104 million euros) and one- time charges
(9 million euros) and gains (43 million euros), adjusted operating
profit improved by 48.8 percent, from 950 million euros to 1,414
million euros. Return on sales (EBIT margin) increased
significantly, from 7.7 percent to 11.8 percent. Adjusted return on
sales rose from 9.3 percent to 12.4 percent,

Due to the increased EBIT, net income for the nine months almost
doubled, from 451 million euros to 889 million euros. After deducting
non-controlling minority interests of 20 million euros, net income
for the period totaled 869 million euros (previous year: 432 million
euros). Earnings per preferred share (EPS) more than doubled from
1.00 euros to 2.01 euros, while the adjusted figure rose from 1.27
euros to 2.13 euros.

Business sector performance in the third quarter

The Laundry & Home Care business sector increased sales by 8.4
percent to 1,123 million euros. The foreign exchange impact amounted
to a positive 5.4 percent. Strong price and promotional competition
continued in all relevant markets, leading to a decline in prices
of 5.6 percent compared to the previous year. However, thanks to
very strong volume growth of 9.0 percent, organic sales rose by 3.4
percent compared to the prior-year quarter. One of the main drivers
of the organic sales growth achieved was again the Africa/Middle East
region which registered a double-digit percentage increase. Western
Europe also recorded a substantial rise in sales, driven in
particular by strong business developments in Germany. Sales in
North America declined slightly in the face of strong
competitive pressures. In the other regions, the business sector
succeeded in maintaining the sales levels of the prior-year quarter,
with market share gains ensuing as a result. Operating profit rose
by 1.4 percent to 139 million euros. At 13.6 percent, adjusted
return on sales was slightly below the high level of the prior-year
quarter which was positively influenced by both a high selling
price level and lower material prices. However, compared to the
second quarter, adjusted return on sales improved by more than one
percentage point, despite continuous pressure on gross margin due
to further increases in material prices and still declining selling
price levels. In the Laundry business segment, the strongest growth
momentum was generated by the heavy-duty detergents, with
Persil doing especially well. Products of the Weisser Riese
brand also performed very well, particularly the Intensive Color
powder and gel variants with their active color power. The
positive trend with respect to fabric softeners continued,
supported by further innovations. In Western Europe, for example,
a fabric softener with innovative fresh pearls was launched under
the Vernel brand, combining wash-protective properties with
long-lasting and drier- resistant fragrances. The continuing
positive developments in organic sales registered by the Home
Care business were further boosted in particular by the results
generated by the company´s dish-washing products. In the machine
dish- washing segment, the products Somat 9 and Somat Perfect Gel
made an especially strong contribution to the gratifying
performance achieved. Henkel's hand dish- washing products
experienced similarly encouraging growth rates. Positive sales
momentum was also generated by the WC products business with the
launch of the first WC rim block with four active pearls.

The Cosmetics/Toiletries business sector continued the excellent
sales and profit performance of previous quarters. With organic
growth of 4.6 percent to 845 million euros, it significantly
exceeded the sales levels achieved in an already strong
prior-year period. The rate of growth posted by
Cosmetics/Toiletries was once again above that of the relevant
markets and resulted from strong performance in both the mature
markets and the emerging economies. The business sector continued
to generate steady growth momentum in Western Europe, while
developments in North America were stable. Performance in the growth
regions of Asia (excluding Japan), Africa/Middle East, Latin America
and Eastern Europe was somewhat above-average, with organic sales
growth in the double-digit percentage range right across the board.
Operating profit rose by 13.4 percent to 113 million euros, and by
7.3 percent after adjusting for foreign exchange. As a result,
there was also an improvement in return on sales for this quarter.
At 13.4 percent, it was 0.4 percentage points above the level for
the prior-year quarter. Adjusted for restructuring charges and
one-time gains, return on sales rose by an even better 0.6
percentage points to 13.6 percent, representing a new high for the
Cosmetics/Toiletries business sector. The Hair Cosmetics segment
continued to perform very well, expanding its market share and
posting record results in all categories. In addition to the
launch of the Schauma Silk Comb range, the Hair Care business
also pursued the relaunch of Gliss Kur Oil Nutritive as one of its
headline activities. In the Colorants business, the focus was on
continuing the successful roll-out of the Syoss Color line and the
introduction of the first permanent foam colorant in the form of
Perfect Mousse. In the Styling category, the relaunch of Taft and
the new sub-line Taft Ultra with Argon Oil likewise contributed to
the good results achieved. In the third quarter, the Body
Care business was characterized by the expansion of the
innovation offensives at its core brands. In Western and Eastern
Europe, the high-performance deodorant brand for men, Right
Guard, was able to establish a position for itself in a challenging
and competitive environment. Meanwhile, the focus with respect to
Fa was on the introduction of the innovative Mystic Moments
range. Market share in North America was substantially increased
with the successful launch of Right Guard Total Defense 5. The
chief activities pursued in the Skin Care segment related to the
launch of the new sub-line Novagen under the Diadermine brand.
The priority in the Oral Care segment was on expanding the successful
Theramed 2in1 series through the inclusion of the innovative Power
Clean & White line. The positive growth trend in the Hair Salon
subsegment continued in the third quarter, supported by the
relaunch of the cross-segment brand Essensity. In a persistently
difficult market environment, the business was therefore able to
further consolidate its good market position and gain additional
market share.

The Adhesive Technologies business sector succeeded in
generating further profitable growth in the third quarter. Sales
exceeded the level of the still crisis-affected prior-year quarter
by a substantial 19.3 percent, reaching 1,945 million euros and
outpacing market growth in all regions. Organic sales rose by 9.7
percent. With price levels only slightly higher, the growth
performance and the market share gains that came with it were largely
driven by volume increases. All the businesses and regions
contributed to this essentially positive development. The
emerging economies of Asia (excluding Japan), Africa/Middle East,
Latin America and Eastern Europe continued to exhibit
above-average increases in sales, with overall organic growth in
the double-digit percentage range. There were also substantial
increases in sales in the mature markets of Western Europe and
North America. Operating profit tripled compared to the prior-year
quarter, reaching a record mark of 268 million euros. Return
on sales likewise increased significantly by 8.3 percentage
points to a new high of 13.8 percent. And this development is all
the more notable, as rising raw material and packaging prices in
this quarter had a considerably greater adverse effect than in the
previous quarters. The Adhesives for Craftsmen, Consumers and
Building segment continued to develop well in all regions. Both
our business serving craftsmen and consumers and our activities
involving the construction industry contributed to the growth
achieved. Substantial increases compared to the prior-year
quarter were registered in Latin America and Eastern Europe. The
significant improvements seen in the Transport and Metal business
continued unabated. Particularly in Asia-Pacific, Latin America
and Eastern Europe, the sales figures posted were substantially
higher than in the prior-year quarter. Double-digit growth rates
were also generated in the regions of North America and
Europe/Africa/Middle East. The General Industry segment also
continued to perform very encouragingly. Indeed, it was
here that the strongest sales growth was achieved from within
the business sector in the period under review, with all regions
contributing to, in some cases, substantial double-digit
percentage revenue growth rates. There was also a further
increase in sales in the Packaging, Consumer Goods and
Construction Adhesives business, the highest growth rates being
achieved in Asia-Pacific, Latin America and Western Europe. The
Electronics business continued to benefit from the continuing
strong recovery taking place in the semiconductor industry. All
Henkel´s regions contributed to the appreciable growth achieved,
with Europe and North America performing particularly well.

Regional performance

In the Europe/Africa/Middle East region, sales improved
organically by 5.3 percent compared to the third quarter of 2009,
coming in at 2,342 million euros, with all three business sectors
contributing. In Africa/Middle East and Eastern Europe, organic
growth was in the high single-digit percentage range. Western
Europe including Germany posted an organic growth rate in the
mid single-digits, as it had done in the first two quarters of 2010.
At 733 million euros, sales of the North America region grew
organically by 4.2 percent compared to the prior-year quarter.
Sales of the Adhesive Technologies business sector developed
particularly well, while sales at Laundry & Home Care declined
slightly and those of the Cosmetics/ Toiletries business sector
remained flat. Meanwhile, the successful development of the Latin
America region continued unabated. Here, organic sales increased by
10.8 percent to 259 million euros, with all business sectors
contributing. In the Asia-Pacific region, growth remained
double-digit at 14.9 percent, with organic sales coming in at
579 million euros in the wake of gratifying increases in sales
posted by Adhesive Technologies and Cosmetics/Toiletries. In the
growth regions of Eastern Europe, Africa/Middle East, Latin America
and Asia (excluding Japan), sales rose by 20.7 percent to 1,656
million euros. Compared to the prior-year quarter, organic
growth amounted to 10.1 percent, keeping it in the double-digit
range. The increase was supported in particular by higher sales
generated by Adhesive Technologies and Cosmetics/Toiletries. The
share of sales attributable to the growth regions increased from 39
to 42 percent.

Sales and profits forecast 2010

In view of the economic forecasts for the current year, Henkel
anticipates that the world economy will grow by around 3.5 percent.

Henkel is confident of again outperforming its relevant markets in
terms of organic sales growth. A number of measures have been
introduced and implemented on the operational side, from which
Henkel expects additional positive momentum to develop. For example,
it anticipates further contributions to profit arising both from the
synergies created through the integration of the National Starch
businesses and from the company´s strictly disciplined cost
management approach. These factors will, together with the expected
increase in sales, positively influence our results. Compared to
the levels in 2009, Henkel expects the adjusted EBIT margin to
gratifyingly increase to a figure well above 12.0 percent and an
improvement in adjusted earnings per preferred share of more than
45 percent.

This document contains forward-looking statements which are
based on the current estimates and assumptions made by the
corporate management of Henkel AG & Co. KGaA. Forward-looking
statements are characterized by the use of words such as expect,
intend, plan, predict, assume, believe, estimate, anticipate and
similar formulations. Such statements are not to be understood as
in any way guaranteeing that those expectations will turn out to be
accurate. Future performance and the results actually achieved by
Henkel AG & Co. KGaA and its affiliated companies depend on a
number of risks and uncertainties and may therefore differ
materially from the forward-looking statements. Many of these
factors are outside Henkel´s control and cannot be accurately
estimated in advance, such as the future economic environment and
the actions of competitors and others involved in the marketplace.
Henkel neither plans nor undertakes to update forward-looking
statements.

Contact
Lars Witteck Wulf Klüppelholz


Tel. +49 211 797 - 2606 Tel. +49 211 797 - 1875
Fax +49 211 798 - 4040 Fax +49 211 798 - 4040

Henkel AG & Co. KGaA

Photo material available for downloading at http://www.henkel.com/press. For


more detailed facts and figures relating to the third quarter of
2010, please go to: http://www.henkel.com/ir.

press@henkel.com

-----------------------

[pic]


end of announcement euro adhoc
--------------------------------------------------------------------------------


ots Originaltext: Henkel AG & Co. KGaA
Im Internet recherchierbar: http://www.presseportal.de

Further inquiry note:

Irene Honisch

Corporate Communications

Tel.: +49 (0)211 797-5668

E-Mail: irene.honisch@henkel.com

Branche: Consumer Goods
ISIN: DE0006048432
WKN: 604843
Index: DAX, CDAX, HDAX, Prime All Share
Börsen: Frankfurt / regulated dealing/prime standard
Hamburg / free trade
Stuttgart / free trade
Düsseldorf / free trade
Hannover / free trade
München / free trade
Berlin / regulated dealing


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