Wella Blames 2003 Results on Euro

Wella AG, controlled by Procter & Gamble, said its sales and earnings before interest and tax slipped in 2003, bearing the brunt of the strong euro. The German firm reported earnings before interest and tax slipped to 313 million euros ($399 million) as its consolidated sales fell 2.3% to 3.3 billion euros.

Illustrating the company’s susceptibility to the euro’s rate against the dollar, executives said sales rose 4.3% in currency-adjusted terms. In a context of uncertainty among clients and employees following its takeover by the U.S giant last year, the company said it was satisfied with the performance.

Professional, its biggest business division, saw sales fall 3.4% while its consumer business sales fell 9.2%, hard hit by the euro. The cosmetics and fragrances division posted a sales rise of 9% in nominal terms. Wella will release final figures for the year on March 30.