Henkel: shares lower after 'mixed' results
(CercleFinance.com) - Henkel shares were down on Thursday morning as investors digested the "mixed" results posted earlier today by the consumer goods giant.
The German company said its adjusted operating profit (EBIT) decreased by 7.9% in 2019 to 3.2 billion euros, on sales that rose by 1.1% to 20.1 billion euros.
Organic sales growth, which excludes the impact of currency effects and acquisitions/divestments, was - however - flat.
"In 2019, our business performance was overall mixed," the group admitted. "Our adhesive technologies business unit was impacted by a marked slowdown in key customer segments, in particular in the automotive and electronics industry," it said.
"At the same time, our consumer businesses, laundry and home care and beauty care, faced intense competition in many markets," Henkel added.
For 2020, Henkel said it expects organic sales growth of between 0% and 2%, with adjusted EPS decreasing in the mid- to high single-digit percentage range at constant exchange rates.
The market didn't react kindly to this report and the Henkel shares were down 3% after these numbers.
Copyright (c) 2020 CercleFinance.com. All rights reserved.
The German company said its adjusted operating profit (EBIT) decreased by 7.9% in 2019 to 3.2 billion euros, on sales that rose by 1.1% to 20.1 billion euros.
Organic sales growth, which excludes the impact of currency effects and acquisitions/divestments, was - however - flat.
"In 2019, our business performance was overall mixed," the group admitted. "Our adhesive technologies business unit was impacted by a marked slowdown in key customer segments, in particular in the automotive and electronics industry," it said.
"At the same time, our consumer businesses, laundry and home care and beauty care, faced intense competition in many markets," Henkel added.
For 2020, Henkel said it expects organic sales growth of between 0% and 2%, with adjusted EPS decreasing in the mid- to high single-digit percentage range at constant exchange rates.
The market didn't react kindly to this report and the Henkel shares were down 3% after these numbers.
Copyright (c) 2020 CercleFinance.com. All rights reserved.