Henkel reports better-than-expected 2009 results

While regarding the recovery of the real economy and the financial markets as still fragile, Henkel expects that its organic sales growth (growth adjusted for foreign exchange and acquisitions/ divestments), will outperform that of its relevant markets.

“In the course of the year, our Adhesive Technologies business has rebounded well from the effects of the economic crisis,” says Kasper Rorsted, Chairman of the Henkel Management Board.

In fiscal 2009, Henkel generated sales of 13,573 million euros ($18,434.26 million).

This amounts to a decrease of 3.9% compared to the previous year.

In organic terms, sales decreased by 3.5% as compared to the previous year.

Of the company’s business units, sales of the Adhesive Technologies business sector decreased by 7.1% to 6,224 million euros.

In organic terms, sales were 10.2% below the level of the previous year.

The decreases in the growth regions were less pronounced than in the mature markets of Western Europe and North America.

Adjusted return on sales declined by 2.0 percentage points to 8.1%, although steady improvement was registered in the course of the year.

This gradual upturn is attributable to the accelerated process of synergy realization arising from the integration of the National Starch businesses, the benefits accruing from the “Global Excellence” program and further measures implemented to reduce costs.

Henkel is confident of again outperforming its relevant markets in terms of organic sales growth.

It anticipates additional contributions to profitability to emanate from the synergies arising from the integration of the National Starch businesses and its strict cost discipline.

These factors will positively influence the development of adjusted operating profit (EBIT) and adjusted earnings per preferred share (EPS).

Henkel expects both metrics to undergo a noticeable improvement of more than 10% compared to the levels of 2009.