HENKEL SALES AND PROFITS INCREASE
In the second quarter of 2004, the Henkel Group increased sales adjusted for foreign exchange by 19.2 percent to 2.756 billion euros, primarily due to the integration of the Dial acquisition into the Henkel Group. Adjusted for foreign exchange and acquisitions/divestments, organic sales growth was about 1.7 percent. Organic growth came primarily from the Consumer and Craftsmen Adhesives and Henkel Technologies business sectors, while within Europe the environment for the Laundry & Home Care and Cosmetics/Toiletries business sectors was hampered by sluggish consumer demand. Dial alone showed an organic sales growth, compared with the prior-year quarter, of more than 4 percent. Operating profit (EBIT) adjusted for foreign exchange was 198 million euros, a 14.0 percent improvement over the same period last year. Before foreign exchange, operating profit was 10.4 percent above the prior year level. "Dial, Henkel Technologies and the Adhesives business sectors each made an important contribution to these encouraging quarterly results," said Ulrich Lehner, president and CEO of the Henkel Group. "We confirm our profit and earning guidance for 2004 and expect our business outside Europe to be the engine for growth."