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    Top Companies Report

    3. Henkel

    ...

    08.04.08

    Germany
    www.henkel.com
    Sales: $9.75 billion



    Sales: 

    $9.75 billion for household and personal care products. Corporate sales: $17.9 billion.  

    Key Personnel:

    Kasper Rorsted, chief executive officer; Dr. Lothar Steinebach, chief financial officer; Hans Van Bylen, executive vice president, cosmetics/toiletries; Dr. Friedrich Stara, executive vice president, laundry and home care; Jeff Piccolomini, president, Henkel of America, Inc.; Bradley A. Casper, president and chief executive officer, The Dial Corporation; Paul De Bruecker, senior vice president and general manager, Schwarzkopf & Henkel.

    Major Products:

    Laundry and home care sold under brands such as Persil, Purex, Dixan, Vernal, Mir Colueurs, Pril, Bref, Spee Weißer, Riese and Somat. Cosmetics and toiletry brands include Schwarzkopf, Fa, Right Guard, Dial, Igora, Palette, Gliss, Kur, Schauma, Taft, Theramed and Diadermine.

    New Products:

    Laundry—Purex Natural Elements, Persil 20°C formulation; Hair care—Palette Golden Gloss Browns, Gliss Kur Oil Nutritive, Schuama Kiwi Glanz, Taft Volume Power, Drei Wetter Taft Sensitive, BlondMe; Personal care—Fa Naturals shower gel and deodorant, Dial Yogurt; Skin care—Diadermine AgeExcellium; Oral care—Theramed 2-in-1 freshness, Theramed Titan Fresh.

    Comments:

    Laundry and home care product sales, which represent 32% of Henkel’s total sales, rose 0.8% to $5.7 billion. However, the unit recorded organic growth of 5.5%, with Europe, Africa and Middle East region making major contributions. In Western Europe, Henkel said it benefitted from its “Best Ever” campaign, which showcased Persil’s centennial, and the launch of other premium detergents in Europe. Stiff competition in North America adversely affected organic sales growth, according to the company. Within the Asia-Pacific region, Henkel called its Indian performance, “especially gratifying.”
       
    By sector, sales growth came from heavy-duty detergents and fabric softeners. In home care, dishwashing and bathroom products made major contributions. The firm said that the launch of Somat 7, which featured a cleaning booster and activator which made it perform better at low temperatures, was very successful.
       
    During 2007, Henkel’s capital expenditures for laundry and home care operations totaled $230 million. The firm expanded its European manufacturing base for liquid products and invested funds to modernize and merge certain research and administrative facilities and improve IT and safety and compliance capabilities.
       
    In cosmetics and toiletries, Henkel’s sales rose 3.7% to €2.7 billion with organic growth of 5.8%. During the fiscal year, Henkel sold its Morris Profumi fine fragrance business to focus it on its key cosmetic and personal care offerings, which include Schwarzkopf, Fa and Dial.
       
    According to Henkel, business in Western Europe grew substantially faster than the market. In Eastern Europe, Henkel continued its strong growth performance with a double-digit percentage increase in revenues. “Appreciable growth” was achieved in the Middle East and in Latin America. Sales in North America reflected the expansion of Dial, according to the company.
       
    By product group, Henkel recorded a substantial increase in sales and market share to new record levels. In hair products, performance was driven by top colorant brands, including Palette and Brilliance. Also, Men Perfect, a new men’s color line from Schwarzkopf,  “attracted further interest,” according to Henkel.
       
    In body care, Dial and Fa successfully continued their innovation offensive, with new products such as Fa Naturals shower gel and deodorant complementing the established yogurt range, which generated brisk demand throughout Europe. Dial increased sales and extended its market with new yogurt variant too as well as with Dial for Men.
       
    Henkel’s skin care business was boosted by its main brand, Diadermine, with products such as Age ExCellium contributing to the success.
       
    In oral care, Theramed achieved good results, helped by a new 2-in-1 freshness variant and the international launch of Theramed Titan Fresh.
       
    Capital expenditures for Henkel’s cosmetic toiletries business totaled €69 million. Projects included optimization of structures and processes. Henkel closed a production plan in La Coruña, Spain in the fourth quarter.
       
    As proof of its plan to focus on core businesses, including household and personal care, Henkel has announced its intention to divest its minority stake in Ecolab Inc.
       
    On July 1, Henkel of America, Inc. relocated its North American corporate headquarters from Gulph Mills, PA to Rocky Hill, CT,  which is also the headquarters for its adhesive business in North America.
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