08.11.16
It was a busy second quarter for Henkel as the company announced it was acquiring Sun Products for $3.5 billion. Still, the news didn't distract Henkel too much, the company generated sales growth of 3.2%. Nominally, sales decreased 0.9% to 4.654 billion euros due to a negative foreign exchange impact of 5.3%.
"We are also very excited about the acquisition of The Sun Products Corporation which we agreed on in the second quarter," said CEO Hans Van Bylen. "This will be a step-change for our position in North America, one of the most important regions for Henkel worldwide. Upon closing of this transaction, we will reach the No. 2 position in the US laundry care market.”
The laundry & home care business unit recorded organic sales growth of 5.3%. The beauty care business unit's organic sales rose 2.1%.
"We are facing a market environment which is becoming increasingly challenging, with moderate global economic growth, slowing growth dynamics, high uncertainties in& the markets and unfavorable foreign exchange developments," observed Van Bylen. “We are committed to reaching our ambitious targets and will focus on leveraging our innovation capabilities, our strong brands and our leading market positions.”
For the full year Henkel expects to post organic sales growth of 2-4%, with adjusted earnings per preferred share to grow between 8-11%. Adjusted EBIT margin is expected int increase to more than 16.5%.
"We are also very excited about the acquisition of The Sun Products Corporation which we agreed on in the second quarter," said CEO Hans Van Bylen. "This will be a step-change for our position in North America, one of the most important regions for Henkel worldwide. Upon closing of this transaction, we will reach the No. 2 position in the US laundry care market.”
The laundry & home care business unit recorded organic sales growth of 5.3%. The beauty care business unit's organic sales rose 2.1%.
"We are facing a market environment which is becoming increasingly challenging, with moderate global economic growth, slowing growth dynamics, high uncertainties in& the markets and unfavorable foreign exchange developments," observed Van Bylen. “We are committed to reaching our ambitious targets and will focus on leveraging our innovation capabilities, our strong brands and our leading market positions.”
For the full year Henkel expects to post organic sales growth of 2-4%, with adjusted earnings per preferred share to grow between 8-11%. Adjusted EBIT margin is expected int increase to more than 16.5%.