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EANS-News: Henkel AG & Co. KGaA /

Geschrieben am 16-11-2012

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Corporate news transmitted by euro adhoc. The issuer/originator is solely
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Financial Figures/Balance Sheet

Düsseldorf (euro adhoc) - November 16, 2012

Henkel reports strongest quarterly performance to date

Henkel fully committed to achieving 2012 targets

- Sales rise 6.6 percent to 4,294 million euros (organic: + 2.5%) -
Adjusted* operating profit: + 16.7 percent to 631 million euros -
Adjusted* EBIT margin: + 1.3 percentage points to 14.7 percent -
Adjusted* earnings per preferred share (EPS): + 16.5 percent to 0.99
euros - Sales share of emerging markets increased to 44 percent -
Free cash flow up more than 50 percent, net debt substantially
reduced - 2012 targets reconfirmed

Düsseldorf - "Although the market environment became more
difficult in the third quarter of 2012, Henkel continued its
strong performance with key financials reaching record levels. We
generated profitable growth in all our business sectors and
realized another substantial increase in our EBIT margin - reaching
an all-time high. Our performance is based on our clear commitment
to our strategic priorities. We are well on track and fully committed
to achieving our targets for full fiscal 2012," said Henkel CEO,
Kasper Rorsted.

"We expect that the volatility and uncertainties in our markets
will persist. Hence, we will continue to adapt and improve our
processes and structures," Rorsted added.

Guidance for 2012 reconfirmed

"Based on our strong performance in the first nine months, we
are fully committed to achieving our targets for 2012. We expect
organic sales growth to be between 3 and 5 percent and to increase
adjusted EBIT margin to 14 percent.

And we continue to expect growth in adjusted earnings per preferred share of
around 15 percent," Rorsted said.

Henkel's sales in the third quarter of 2012 were 4,294 million euros, an
increase of 6.6 percent compared to the figure for the prior-year quarter.
Organic sales, which exclude the impact of foreign exchange and
acquisitions/divestments, rose by 2.5 percent.

All three business sectors contributed to this performance: Laundry &
Home Care posted solid organic growth of 4.6 percent. The Beauty
Care business sector likewise achieved solid organic sales growth
amounting to 3.3 percent. And the Adhesive Technologies business
sector generated positive organic sales growth of 1.0 percent.

After allowing for one-time gains, one-time charges and
restructuring charges, adjusted operating profit improved by 16.7
percent, from 541 million euros to 631 million euros, with all
three business sectors contributing. Reported operating profit
(EBIT) increased from 451 million euros to 586 million euros.

Adjusted return on sales (EBIT margin) increased significantly
by 1.3 percentage points, from 13.4 percent to 14.7 percent.
Reported return on sales was 13.6 percent, following 11.2 percent
in the comparable prior-year period.

Henkel's financial result was -42 million euros compared to -37
million euros in the prior-year quarter, the change being due
primarily to currency hedging costs. At 24.8 percent, the tax rate
was slightly above the level of the prior- year quarter (24.2
percent).

Net income for the quarter rose by 30.3 percent, from 314 million
euros to 409 million euros. After deducting 12 million euros
attributable to non-controlling interests, quarterly net income
amounted to 397 million euros (prior-year quarter: 307 million
euros). Adjusted net income for the quarter after deducting
non-controlling interests was 429 million euros compared to
366 million euros in the prior-year quarter. Earnings per
preferred share (EPS) increased from 0.71 euros to 0.92 euros. The
adjusted figure was 0.99 euros compared to 0.85 euros in the
third quarter of 2011.

Further significant progress was made in the management of net
working capital. Compared to the prior-year period, the ratio of net
working capital to sales improved by 1.4 percentage points to
6.6 percent. Net debt also showed a substantial decrease as of
September 30, 2012, down to 612 million euros (September 30,
2011: 1,570 million euros).

Business performance January through September 2012

In the first nine months of 2012, Henkel achieved a strong increase
in sales compared to the prior-year period of 6.0 percent to
12,508 million euros. Organic sales also showed solid growth with a
rise of 3.7 percent versus the first nine months of fiscal 2011.
Adjusted operating profit increased by 17.3 percent, from 1,528
million euros to 1,791 million euros, with all three business
sectors contributing to the improvement. Adjusted return on
sales (EBIT margin) increased from 12.9 percent to 14.3 percent.

Adjusted net income for the nine months improved by 20.5 percent,
from 1,044 million euros to 1,258 million euros. After deducting
income of 32 million euros attributable to non-controlling
interests (prior-year period: 21 million euros), adjusted net
income for the nine months was 1,226 million euros (prior- year
period: 1,023 million euros). Adjusted earnings per preferred share
(EPS) rose by 19.4 percent, from 2.37 euros to 2.83 euros. Business
sector performance in the third quarter 2012

The Laundry & Home Care business sector continued its solid sales
and earnings performance also in the third quarter, with all
its key financials substantially exceeding those of the third
quarter of 2011. Nominal sales rose by 7.6 percent to 1,194 million
euros, compared to 1,110 million euros in the prior-year quarter.
Organically, sales rose by 4.6 percent.

All regions contributed to the solid sales performance achieved.
The emerging markets again showed the greatest growth momentum,
with overall expansion in the high single-digit range. The
increase in sales generated in Latin America came close to
double-digit. Sales in Eastern Europe were also very strong,
supported by double-digit growth rates in Russia and Turkey. A
strong increase in sales was also achieved in the Africa/Middle
East region, despite the political and social unrest in the Middle
East. Henkel again posted positive sales growth in Western
Europe, driven in particular by a very strong performance in
France. Within a still weak market environment in the Southern
European Countries, Italy also performed solidly. Sales in North
America again improved despite a still declining market.

Adjusted operating profit rose by a substantial 11.3 percent to
173 million euros. Adjusted return on sales increased by 0.5
percentage points to 14.5 percent, thus reaching the same high
level of the first two quarters of this year, with ongoing
measures to reduce costs and enhance efficiency having a
positive effect. Reported operating profit rose significantly
compared to the prior-year quarter, from 125 million euros to 168
million euros.

The Beauty Care business sector again continued its uptrend in
profitable growth during the third quarter. Nominal sales totaled 908
million euros, 5.6 percent above the 860 million euros
generated in the prior-year quarter. Organic sales rose by 3.3
percent.

As in the preceding quarters, the emerging markets made a
particularly important contribution to Beauty Care's solid
sales performance. Asia (excluding Japan) and the Africa/Middle
East region continued to experience rapid expansion, generating
double-digit growth rates. The growth dynamics in Latin America
eased somewhat. Overall, sales in the mature markets increased.
There was solid sales growth in Western Europe, despite the
negative economic conditions and persistently weak market
environment. North America developed very positively with a strong
increase in sales compared to the prior-year quarter. However,
the mature markets in the Asia-Pacific region remained below the
level of the third quarter of 2011.

Adjusted operating profit increased by 8.6 percent to 133 million
euros. At 14.7 percent, adjusted return on sales improved by
0.4 percentage points compared to the third quarter of 2011.
Reported operating profit totaled 114 million euros compared to
111 million euros in the comparable prior-year quarter.

The Adhesive Technologies business sector continued its
positive sales development in the third quarter of 2012. Nominal
sales rose by 6.6 percent to 2,153 million euros, with organic
growth coming in at 1.0 percent.

Overall, the emerging markets contributed to the improvements made
with a solid increase in sales. Particular momentum came from the
regions of Asia (excluding Japan) and Eastern Europe. Sales in
Africa/Middle East likewise showed a solid development. By
contrast, sales in Latin America fell slightly below the level of
the prior-year quarter. Sales in Western Europe likewise
declined. Here, Henkel was unable to completely offset the effects
of the negative economic conditions prevailing - particularly
those encountered in the countries of Southern Europe. On the
other hand, the businesses in North America posted a solid
increase in sales overall.

Adjusted operating profit again increased by a substantial 18.3
percent to 345 million euros. Adjusted return on sales improved
by 1.6 percentage points, reaching 16.0 percent for the first
time. Compared to the prior-year quarter, reported operating
profit rose by 29.5 percent to 329 million euros. Regional
performance

In a highly competitive market environment, sales in the Western
Europe region, which accounts for around one third of total sales,
amounted to 1,423 million euros, matching the level of the
prior-year quarter. Organically, sales decreased slightly, by 0.8
percent, attributable primarily to the recessive trend in
economic activity prevailing in Southern Europe. Sales in the
Eastern Europe region rose by 6.5 percent to 825 million euros.
Organic growth came in at 4.3 percent, with the company's businesses
in Turkey and Russia making a major contribution. Sales in
the Africa/Middle East region rose by 12.2 percent to 265
million euros. Organic sales growth was 6.3 percent, with all the
company's business sectors contributing.

Sales of the North America region rose by 13.0 percent to 790
million euros. Organically, sales grew by 2.8 percent despite a
reluctant consumer climate. At 272 million euros, sales in the Latin
America region remained roughly at the prior-year level. Organic
sales growth amounted to 1.5 percent, with business performance in
Mexico making a particularly important contribution. The Asia-
Pacific region registered sales growth of 16.1 percent to 680 million
euros. In organic terms, sales rose by 6.6 percent, driven in
particular by double-digit growth in China.

Sales growth was again given a major boost by the emerging markets
of Eastern Europe, Africa/Middle East, Latin America and Asia
(excluding Japan), where sales rose by 10.1 percent to 1,885
million euros. Organic sales rose by 5.9 percent. The share of
sales attributable to the emerging markets increased from 43 percent
of consolidated sales in the prior-year quarter, to 44 percent.

Sales and earnings forecast 2012

Henkel continues to expect organic sales growth of between 3 and 5
percent for full fiscal 2012. Henkel is confident of continuing the
positive growth path exhibited by its consumer goods businesses,
with organic sales expected to expand in the low single-digit
percentage range. For the Adhesive Technologies business sector,
Henkel expects organic sales to grow in the mid single-digit
percentage range. Henkel confirms its forecast for an adjusted return
on sales (EBIT) of 14 percent (2011: 13.0 percent). In its
report for the second quarter, Henkel specified its guidance for
the increase in adjusted earnings per preferred share (2011
figure: 3.14 euros) with a revised expectation since then of around
15 percent (previously: at least 10 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,
forecast 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
E-mail: lars.witteck@henkel.com E-mail: wulf.klueppelholz@henkel.com


Henkel AG & Co. KGaA

The report for the third quarter of 2012 and other information with
download material and the link to the press conference broadcast can
be found in our press folder on the internet at:
http://www.henkel.com/presskit-q3-2012

press@henkel.com

Further inquiry note:
Irene Honisch
Assistent Corporate Communications
Tel.: +49 (0)211 797-5668
E-Mail: irene.honisch@henkel.com

end of announcement euro adhoc
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company: Henkel AG & Co. KGaA
Henkelstr. 67
D-40191 Düsseldorf
phone: +49 (0)211 797-0
FAX: +49 (0)211 798-4008
WWW: http://www.henkel.com
sector: Consumer Goods
ISIN: DE0006048432, DE0006048408
indexes: DAX, CDAX, HDAX, Prime All Share
stockmarkets: free trade: Hannover, München, Hamburg, Düsseldorf, Stuttgart,
regulated dealing: Berlin, regulated dealing/prime standard:
Frankfurt
language: English


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