Beiersdorf Q3 net income flat at euro2 million

German consumer goods company Beiersdorf 3rd quarter net income flat at euro2 million

• By George Frey, AP Business Writer
• On 6:59 am EST, Tuesday November 3, 2009

FRANKFURT (AP) -- Germany's Beiersdorf AG, the maker of consumer goods like Nivea skin cream, said Tuesday its third-quarter net income remained steady as a slight recovery in the Tesa tape and adhesive division helped offset tough market conditions.

Beiersdorf, based in Hamburg, reported net income for the July-September period of euro2 million, unchanged from the third quarter of 2008, even though revenue fell 7 percent to euro1.4 billion from euro1.5 billion.

Beiersdorf said it expects the difficult sales and earnings trend seen to continue through 2009.

"Following the decline in business in the first months of the year, Beiersdorf was able to improve its sales trend in both business segments in the third quarter," Thomas Quaas, the company's chief executive said in the report.

"The Tesa business segment is seeing a trend reversal in its industrial business in particular and recorded a positive result," Quaas said.

The Tesa division makes tapes and adhesives for households and industry. Demand for industrial products in particular fell sharply as auto makers' sales declined in the downturn.

In the third quarter, however, the Tesa business saw revenue rise to euro195 million from euro177 million in the second quarter, a 10 percent increase. In the third quarter of 2008, the Tesa division reported revenue of euro213 million.

Beiersdorf said it expects the tapes and adhesives market to remain difficult for the rest of the year, but that the Tesa division will be able to maintain its strong position in the market.

The company said the consumer business, comprised of Nivea creams and other cosmetics brands like La Prairie, is expected to continue growing faster than the rest of the market during the rest of the year.

Beiersdorf is forecasting consumer products growth in Russia, China and Brazil.

The consumer division reported revenue of euro1.22 billion, up 2 percent from the third quarter a year ago.

The company's statement sent shares of Beiersdorf more than 3 percent higher to euro42.70 in Frankfurt afternoon trading.

In the first nine months of the year, Beiersdorf reported net profit increased 20 percent to euro5 million. Revenue in the January-September period fell 2 percent to euro4.4 billion.

http://www.beiersdorf.com

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