EANS-News: Henkel AG & Co. KGaA /

Henkel affected by economic downturn

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Düsseldorf (euro adhoc) - Düsseldorf, May 6, 2009
Q1 results burdened by fall in demand among key industrial customers

Henkel affected by economic downturn

. Sales increase of 3.1 percent to 3,258 million euros
. Organic sales decline of 7.0 percent
. Adjusted operating profit fell 26.1 percent to 235 million euros
. Adjusted earnings per preferred share declined 39.2 percent to 0.31 euros

"At the beginning of this new financial year, Henkel too has felt the effects

of the persistently adverse economic climate, with our businesses
turning in a very mixed set of results for the first quarter of
2009," commented Kasper Rorsted, Chairman of the Henkel
Management Board. "Our two consumer goods business sectors,
Laundry & Home Care and Cosmetics/Toiletries, continued to
perform very well, while the Adhesive Technologies business
sector suffered from the challenges encountered in major
customer industries worldwide." Rorsted continued: "We are
dissatisfied with our start to fiscal 2009. However, we are
convinced that, as a result of our early introduction of
countermeasures and based on our solid financial position, we will
emerge from this still difficult economic environment stronger
than before."

In its first quarter of 2009, Henkel increased sales compared to the
prior-year quarter by 3.1 percent to 3,258 million euros. The rise
is attributable to Henkel's acquisition of the National Starch
businesses in April 2008. In organic terms, or adjusted for
foreign exchange and acquisitions/divestments, sales decreased by
7.0 percent within a difficult overall market environment. After
adjusting for foreign exchange, the increase in sales amounted to
3.8 percent. Business development at the company's three business
sectors was very mixed. While the consumer goods business sectors
Laundry & Home Care and, in particular, Cosmetics/Toiletries,
continued to perform very well, with organic growth rates of 0.4
percent and 3.5 percent respectively, the Adhesive Technologies
business sector suffered from the challenges encountered in major
customer industries worldwide. This was reflected in an organic
decline in sales of 18.2 percent.

Due primarily to the significant decrease in earnings at the
Adhesive Technologies business sector, operating profit (EBIT) fell
by 31.7 percent from 320 million euros in the first quarter of 2008
to 218 million euros. After adjusting for one-time
gains/charges and restructuring charges, adjusted operating
profit ("adjusted EBIT") decreased by 26.1 percent from 318
million euros in the prior-year quarter to 235 million euros.

The EBIT margin amounted to 6.7 percent, while the adjusted
EBIT margin declined from 10.1 percent to 7.2 percent. Both
results are largely attributable to the significant decrease
in profits at the Adhesive Technologies business sector.

As a result of the sale of Henkel's stake in Ecolab in November
2008, the investment result fell from 19 million euros to 0 million
euros. Net interest expense increased by 14 million euros from -38
million euros to -52 million euros. This is primarily due to
higher net debt arising from the financing of the purchase price
for the acquisition of the National Starch businesses. The
financial result consequently decreased further, from -19 million
euros to -52 million euros. The tax rate amounted to 27.1 percent.

With the lower EBIT and the decrease in the financial result, net
earnings for the quarter fell by 45.7 percent from 223 million euros
to 121 million euros. After minority interests totaling 4 million
euros, net earnings for the quarter amounted to 117 million euros
(prior-year quarter: 219 million euros). Adjusted quarterly net
earnings after minority interests were 130 million euros compared to
218 million euros in the first quarter of the previous year.
Earnings per preferred share eased from 0.51 euros to 0.28 euros.
The adjusted figure was 0.31 euros compared to 0.51 euros in the
prior-year quarter.

Business Sector Performance

The Laundry & Home Care business sector posted organic sales
growth of 0.4 percent, with foreign exchange having a negative
impact of 2.1 percent. In nominal terms, sales fell by 1.7
percent to 1,013 million euros. Due to the difficult market
environment, sales in Western Europe and North America fell below
the figure for the same period last year. In the regions of
Eastern Europe, Africa/Middle East and Latin America, on the other
hand, the company posted organic sales growth with, in most
cases, double-digit growth rates. Operating profit rose by 7.9
percent to 107 million euros. After adjusting for foreign exchange,
it rose even by 9.6 percent, with contributions coming not only
from price increases but also from successful measures to reduce
cost and enhance efficiency. The decrease in material prices that
began toward the end of 2008 also continued through the first
quarter of 2009. In the Laundry segment, sales growth was once
again driven by Henkel's heavy-duty detergents and fabric
softeners. Sales growth was again supported in this quarter by
innovations such as the cold power formula launched under
Henkel's premium detergent brands in Western Europe. With this
innovation, excellent laundry power is assured even at low
temperatures, enabling consumers to save energy and therefore
reduce the burden on the environment as they do their washing.
Sales of the Home Care segment matched the level of the previous
year. Henkel's dishwashing detergents and WC cleaners performed
particularly well. Of the dishwashing products, the company's two
major brands Pril and Somat once again succeeded in growing faster
than the category average.

Despite the increasingly difficult market conditions and a very
strong prior- year quarter, the Cosmetics/Toiletries business sector
continued the positive trend of recent years, registering organic
sales growth of 3.5 percent. Once again it was successful in
outpacing the growth of its relevant markets. Apart from Western
Europe, all the regions contributed to the organic improvement
achieved, with the regions of Eastern Europe, Asia and Latin
America in particular continuing to generate strong growth. In
nominal terms, sales rose by 1.7 percent to 720 million euros.
Operating profit reached 91 million euros, an increase of 4.1
percent, rising to 4.8 percent after adjusting for foreign
exchange. The Hair Cosmetics segment succeeded in expanding
the market positions of all its categories. The Hair Care and
Colorants businesses turned in a particularly positive performance,
aided by the international launch of the new Schauma line Q10,
the introduction of the new hair care brand Syoss and also the
launch of the new colorant brand Essential Colors. The Body
Care segment continued its very encouraging performance in the USA
under the Dial brand. This was based in particular on line
extensions and the launch of a number of new body wash products.
In Europe, the Fa brand specifically ensured a successful start to
the year: in the deodorants business, the positive trend of the
previous year was extended through the launch of new products for
both women and men. In the Skin Care segment, the focus was on the
launch of the new Diadermine line Dr. Caspari and also the relaunch
of the Diadermine core range Lift Plus Triple Lifting. In the Oral
Care segment, the new Theramed variant Oxy White generated
positive impetus. Against the background of an increasingly serious
slowdown in the global professional hairdressing market, Henkel's
Hair Salon segment significantly outperformed its sector. At the
center of its activities were the continuing rollout of the new
brand Essensity and the launch of the styling line Silhouette
Gold.

Sales of the Adhesive Technologies business sector increased by 7.7
percent to 1,469 million euros, or by 7.2 percent after adjusting
for foreign exchange. The rise is due to the acquisition of the
National Starch businesses. In organic terms, sales were 18.2
percent below the figure for the prior-year quarter. In view of
the continuing challenges encountered in the world economy, the
business sector was unable to match the sales realized in the same
quarter last year in any of its regions, with the exception of Latin
America. Due to the strong decline in volumes and the
associated decrease in capacity utilization, operating profit
fell by 68.6 percent to 47 million euros. Included in this
figure is a charge of 4 million euros arising from the
integration of the National Starch businesses. In the Adhesives for
Craftsmen and Consumers segment, the reluctance to spend among
consumers and inventory reductions pursued by the business sector's
customers had a negative effect on business. This led to a
shortfall versus the prior-year results. The general trend toward
postponement of construction projects had an adverse effect on the
performance of the Building Adhesives segment. However, with
strong growth still taking place in the Middle East region, this
segment only suffered a slight decline. Business in Eastern Europe
remained at the prior-year level. The Packaging, Consumer Goods
and Construction Adhesives segment benefited significantly from
the acquisition of the National Starch businesses and also proved
to be more stable in this difficult economic climate. However, here
too the slight decline in demand for consumer goods impacted
business development. The effects of the global downturn facing
the customer industries of the business sector were particularly
noticeable in the business results generated by its Specialty
Adhesives and Surface Treatment segment, with significant
reductions in volume occurring particularly in its operations
involving the automotive industry, manufacturers of durable goods
and the metal industry. The Electronics segment has been
strengthened for the long term through the acquisition of the
National Starch businesses. However, the general market
weakness in the semiconductors sector has had a significantly
negative effect on business performance.

Regional Performance

In the Europe/Africa/Middle East region, organic sales fell by
4.6 percent below the figure for the prior-year quarter. While the
Laundry & Home Care and Cosmetics/Toiletries business sectors were
able to slightly increase sales, Adhesive Technologies posted a
decrease in the double-digit percentage range. In Africa/Middle
East, Henkel once again generated a double-digit organic
growth rate, while developments in Western Europe including
Germany were regressive. The previously strong growth rates
registered in Eastern Europe eased. Overall, the region's sales
decreased from 2,119 million euros to 1,996 million euros. The
share of Group sales was 61 percent. The organic sales of the
North America region decreased by 14.1 percent. Due to the difficult
market environment prevailing in North America, Laundry & Home
Care experienced a slight decline in sales while Adhesive
Technologies suffered a substantial drop. On the other hand,
there were positive developments at the
Cosmetics/Toiletries business sector. Total sales of the region
amounted to 664 million euros, resulting in a share of Group sales
of 20 percent. In organic terms, sales in the Latin America
region increased by 5.1 percent, with all the business sectors
contributing. At 188 million euros, the share of total sales
accounted for by this region was 6 percent. In the Asia-Pacific
region, in organic terms sales decreased compared to the same
quarter last year by 20.3 percent. A rise in the sales generated
by Cosmetics/Toiletries was offset by significant decreases at
Adhesive Technologies and the discontinuation of Henkel's
laundry and home care operations in China. Total sales of the
region amounted to 354 million euros, yielding a share of Group sales
of 11 percent. In the growth regions of Eastern Europe, Africa,
Middle East, Latin America and Asia (excluding Japan), sales
increased by 3.8 percent to 1,143 million euros, corresponding to a
share of consolidated sales of 35.1 percent. Organic growth
amounted to 0.3 percent.

Major Participation Following the sale of its stake in Ecolab Inc.
in November 2008, Henkel no longer has any major participations.

Sales and Profits Forecast 2009 Henkel expects that the difficult
market conditions prevailing in the real economy and also in the
financial markets will persist through 2009. The general
economic climate and its further development are difficult to
predict. Nevertheless, Henkel is confident of outperforming its
markets in terms of organic sales growth (i.e. after
adjusting for foreign exchange and acquisitions/divestments).
A number of measures have already been introduced on the operational
side, from which Henkel expects positive momentum to develop.
These activities and also relief from easing of raw material
prices will support the development of operating profit (EBIT) and
earnings per preferred share (EPS), as adjusted in each case
for one-time gains/charges and restructuring charges. As soon
as the markets allow properly reasoned assumptions, Henkel
will communicate quantified expectations for full fiscal 2009.

For the second quarter of 2009 Henkel expects its consumer
businesses to continue their strong development of the first quarter
of the current fiscal year. For the Adhesive Technologies business
sector Henkel anticipates a slight improvement compared with the
first quarter of 2009.

This information 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, etc.
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 any forward-looking statements.

Contact:

Lars Witteck Wulf Klüppelholz
Phone: +49-211-797-2606 Phone: +49-211-797-1875
Fax: +49-211-798-9208 Fax: +49-211-798-9208

Henkel AG & Co. KGaA

Chief Communications Officer:
Ernst Primosch, Corporate Vice President

Photo material available for downloading at http://henkel.com/press.
For more detailed facts and figures relating to the first quarter of
2009, please go to: http://www.henkel.com/ir.

press@henkel.com

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

Further inquiry note:

Irene Honisch

Assistent Corporate Communications

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

E-Mail: irene.honisch@henkel.com

Branche: Consumer Goods
ISIN: DE0006048432
WKN: 604843
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