In the third quarter of 2010, Henkel posted sales of €3,961 million (~ $5,528 million), which represents an increase of 13.7% compared to the prior-year quarter. After adjusting for foreign exchange, sales improved by 6.4%. Organically (after adjusting for foreign exchange, acquisitions and divestments), the increase was 6.5%.
Operating profit (EBIT) rose by 73%, from €290 million (~ $404 million) to €501 million (~ $699 million). This is primarily due to the substantial improvement attained by Adhesive Technologies, which was able to maintain a significant rate of increase in earnings.
Due to the increase in EBIT, net income for the quarter rose by 90.6%, from €180 million (~251 $ million) to €343 million (~ $478 million). Net income for the quarter amounted to €337 million (~ $470 million). Adjusted quarterly net income after non-controlling interests was €349 million (~ $487 million), compared to €256 million (~ $357 million) in the third quarter of 2009.
The Adhesive Technologies business sector generated further profitable growth in the third quarter. Sales exceeded the level of the still crisis-affected prior-year quarter by 19.3%, reaching €1,945 million (~ $2,714 million) and outpacing market growth in all regions. Organic sales rose by 9.7%.
“In the third quarter, we further extended our recent successes with results even better than the good performance we have shown in recent quarters,” said Kasper Rorsted, chairman of the Henkel Management Board. “This is the first quarter that we have ever achieved an adjusted EBIT margin of 13%. 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.
“We expect to achieve an adjusted EBIT margin of well above 12% for 2010, accompanied by an improvement in adjusted earnings per preferred share of more than 45%. 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.”
For additional details, visitwww.henkel.com.