Reckitt’s Third Quarter Net Income Rises 40%

Reckitt Benckiser PLC, London, met expectations with a 40% rise in third quarter net income and firmed up its full year sales and profit targets around the upper end of previously-stated ranges. The company with brands including Dettol, Lysol, Finish, and Calgonit, among others reported a 4% rise in revenue in the quarter to $1.3 billion.

As in the second quarter, the company attributed the strong results to strong growth in Western Europe and North America on the back of successful new products, which more than offset weak trading conditions and volatility in many emerging markets. Analysts were generally pleased with the results, which also reflect the continuing benefits of the company’s costs saving programs – Squeeze 2-50 program and initial savings from Xtrim, another cost cutting program.

Speaking to Dow Jones Newswires, Tom Corran, Reckitt Benckiser senior vice president of corporate communications and investor relations said that while the pipeline of new product introductions remains full, growth in the fourth quarter will continue to be driven by “the same products that have been performing well all year.” In Western Europe and North America, he said those products include automatic dishwashing, air care, depilatories, garment care and health care.

As a result, the company indicated it’s “increasing confidence in the full year targets of net revenue growth of around 6% at constant exchange and net income growth of around 18%.”