Henkel Posts Drop In Q3 Net Profit, Adjusted Earnings Gain

Henkel & Co KGaA

reported a drop in its profit for the third quarter. Henkel's quarterly net income slipped to 450 million euros, versus 469 million euros, in the year-ago quarter. Net income attributable to shareholders fell 3.9% to 440 million euros compared to 458 million euros. Its adjusted net income, excluding items, rose 6.7% to 508 million euros from 476 million euros. Henkel's earnings per preferred share fell to 1.01 euros from 1.06 euros, while adjusted EPS rose to 1.17 euros from 1.10 euros. The company's adjusted earnings before interest and tax climbed 3.1% to 693 million euro ($864 million), from EUR672 million, compared to analysts' estimates of EUR674 million. Its revenue jumped 1.2% to EUR4.24 billion, while organic sales gained 2.3%. “Despite a difficult economic environment, Henkel reported a solid performance in the third quarter of 2014. We increased organic sales in all our business units and further improved our profitability,” said Henkel CEO Kasper Rorsted. For fiscal 2014, Henkel also affirmed its forecast for a 3% to 5% gain in organic sales. It projects adjusted EBIT margin to rise to just under 16%, versus the earlier outlook of around 15.5%. Rorsted added, “We face an ongoing conflict between Russia and Ukraine and persistent political unrest in the Middle East. Overall, the economic outlook is becoming increasingly challenging. In this difficult market environment, agility and flexibility are key success factors. That´s why we will continue to further simplify and align our structures.” Henkel shares rose 0.60% to close at $90.47 yesterday.