In the third quarter of
2009, Henkel generated sales of 3,485
million euros. In a still-difficult market environment, this represents a
decrease of 7.3% compared to the figure for the prior-year quarter. In organic terms (i.e., after adjusting
for foreign exchange and acquisitions/divestments), sales showed another
improvement compared to the first two quarters of this year, coming in just
2.5% below the level of the third quarter of 2008. However, performance of the
company’s three business sectors continued to show a very mixed picture. Laundry
& Home Care again performed well, posting an increase in organic sales of
2.4%. Cosmetics/Toiletries saw organic sales rise by
3.7%, again outstripping the already very good figures of recent quarters. Due
to the volume decline encountered in major customer industries, Adhesive
Technologies registered a decrease in organic sales of 7.6%. Compared to the
second quarter, however, the drop in organic sales was halved.
Due primarily to the burden
of restructuring charges on the results of the prior-year quarter, operating profit (EBIT) increased by
51.8%, from 191 million euros to 290 million euros. After
adjusting for one-time gains and charges and restructuring charges totaling 95
million euros, adjusted operating profit (“adjusted EBIT”) decreased slightly
by 1.5%, from 391 million euros to 385 million euros.
Return on sales (EBIT margin) was 8.3%, while adjusted return on
sales (“adjusted EBIT margin”) increased from 10.4% to 11.0%.
The investment result fell
from 24 million euros to 0 million euros due to the sale of the company’s stake
in Ecolab in November 2008. Net interest expense
improved by 32 million euros, from –72 million euros to –40 million euros, largely
attributable to lower interest rates compared to the previous year. Consequently, the financial
result improved from –48 million euros to –40 million euros. The tax rate amounted to 28.0%.
Due to the increased EBIT, net earnings for the quarter rose by
68.2%, from 107 million euros to 180 million euros. After
deducting minority interests of 8 million euros, quarterly net earnings totaled
172 million euros compared to 101 million euros in the third quarter of 2008. Adjusted quarterly net earnings after minority
interests amounted to 240 million euros versus 251 million euros in the
prior-year quarter. Earnings per
preferred share increased from 0.23 euros to 0.39 euros. The adjusted
figure was 0.55 euros compared to 0.59 euros in the prior-year quarter.
Thanks to a strong cash flow
performance, net debt was further reduced
compared to the end of the second quarter of 2009 by some 700 million euros to
3.2 billion euros. Good progress was
also made with regard to working capital management: compared to the prior-year
period, the ratio of net working capital
to sales improved from 12.8% to 10.3%.