Henkel: first-quarter operating profit down 6%
(CercleFinance.com) - Henkel shares fell 4% in early trading on Tuesday, after the German consumer goods company posted dismal quarterly results due to an "increasingly challenging" market environment.
Firs-quarter results included operating profit (EBIT) that is down almost 6% to 795 million euros, on sales that are up 2.8% at almost 5 billion euros.
Organic sales growth reached just 0.7%, the group said, well short of the consensus of 1.8%.
Organic sales at its key adhesives unit fell 0.8% in the first quarter, mainly due to a deceleration in the electronics and automotive sectors, Henkel said.
Sales of the beauty care business unit were up 2.2% in organic terms.
Henkel confirmed its outlook for the full fiscal year, still expecting organic sales growth of 2% to 4%, but the statement clearly failed to reassure investors.
"These poor first-quarter results leave much to do in 2019," said analysts at British broker Liberum.
Henkel shares are currently down 4%, underperforming a 0.1% rise in the DAX index.
Copyright (c) 2019 CercleFinance.com. All rights reserved.
Firs-quarter results included operating profit (EBIT) that is down almost 6% to 795 million euros, on sales that are up 2.8% at almost 5 billion euros.
Organic sales growth reached just 0.7%, the group said, well short of the consensus of 1.8%.
Organic sales at its key adhesives unit fell 0.8% in the first quarter, mainly due to a deceleration in the electronics and automotive sectors, Henkel said.
Sales of the beauty care business unit were up 2.2% in organic terms.
Henkel confirmed its outlook for the full fiscal year, still expecting organic sales growth of 2% to 4%, but the statement clearly failed to reassure investors.
"These poor first-quarter results leave much to do in 2019," said analysts at British broker Liberum.
Henkel shares are currently down 4%, underperforming a 0.1% rise in the DAX index.
Copyright (c) 2019 CercleFinance.com. All rights reserved.