GERMANY: Düsseldorf-based Henkel posted a disappointing 4.5% decline in profits in the first quarter of 2004 due to lower sales in the core home care division and costly product re-launches. Henkel, whose overall sales in the first quarter rose 2.4%, and 4.8% after currency effects, said that the adhesives and technologies units performed best in a statement.
Henkel executives, who expect the $2.9 billion purchase of Scottsdale, AZ-based Dial to give profits an immediate boost, said the forecasts did not include the recent acquisition. With revenues of about $1.3 billion last year, Dial roughly doubles Henkel’s North American revenues. Dial’s brands include Purex washing detergents and Renuzit air fresheners.
In other news, Henkel bought the Indola professional hair care unit of Alberto-Culver Inc. in May for an undisclosed price. Indola has annual sales of approximately $55 million.