Henkel lifts margin goal on emerging market demand for glues, detergents

Reuters

* Q3 sales 4.18 bln eur vs Rtrs poll avg 4.34 bln

* Q3 adj EBIT 672 mln eur vs poll avg 659 mln

* Sees 2013 adj EBIT margin 15 pct vs previous 14.5 pct

* Shares indicated up 1 pct in pre-market trade

FRANKFURT, Nov 12 (Reuters) - German consumer goods groupHenkel raised its profit margin outlook for the yearafter demand for washing powders and industrial adhesives inemerging markets helped to offset currency headwinds in thethird quarter.

Henkel said adhesives, which account for half its business,were driven by Latin America, eastern Europe and Asia, reachingan adjusted return on sales of 17.8 percent for the first time,while sales at its laundry and home care unit rose 5.5 percent.

Adhesives rivals 3M, Sika, ITW andlocal peer Beiersdorf have all reported rises inthird-quarter sales and profits as a recovery in constructionand automotive markets picks up pace.

As a whole, Henkel, which makes Persil washing powder andSchwarzkopf hair products, on Tuesday reported third quarteradjusted earnings before interest and tax (EBIT) of 672 millioneuros ($901 million), above the average for 659 million euros ina Reuters poll.

The group now expects an adjusted EBIT margin of about 15percent for the year, up from a previous forecast of 14.5percent.

Henkel's third quarter sales unexpectedly fell to 4.18billion euros, against the average forecast for 4.34 billion ascurrency effects took their toll.

Stripping out the impact from weak currencies, such as theJapanese yen, U.S. dollar and Russian rouble, sales would haverisen 4.2 percent.

The group has previously announced a longer term goal toincrease sales to 20 billion euros, half of which should comefrom emerging markets, by the end of 2016. About 45 percent ofits sales come from emerging markets now.

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