Henkel AG (HEN.XE) said Tuesday that its third-quarter net profit fell, citing a volatile market environment and negative currency effects, but it raised its forecast for adjusted earnings per preferred share.
The maker of Dial soap and Purex laundry detergent reported third-quarter net profit of 564 million euros ($657.4 million) compared with EUR576 during the same period the previous year. Adjusted net income for the quarter was EUR666 million compared with EUR616 million.
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Sales for the quarter were up 4.9% at EUR4.98 billion. A FactSet consensus forecast expected sales of EUR5.09 billion.
"Currency effects will have an increasingly negative impact", Chief Executive Hans Van Bylen said.
Henkel raised its forecast for adjusted earnings per preferred share, citing a strong business performance. It now forecasts an increase of around 9%. It had previously seen an increase of between 7% and 9%. The company confirmed its other guidance, adding that it still expects organic sales growth of 2%-4% and a more-than 17% increase on the prior year for adjusted return on sales.
It updated its guidance for all three of its business units. It had previously said that organic sales growth at all three would fall within the 2% to 4% range forecast for the group. Henkel now forecasts organic growth of 4% to 5% for its adhesive-technologies business, while it sees organic growth at 0% to 1% for beauty care. It sees a decline of 2% for laundry and home care.
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Henkel now sees organic growth of around 2% for its laundry and home care business in 2017. "Henkel 3Q Net Profit Fell, Sales Rose," at 0712 GMT, misstated the organic growth percentage change in the final paragraph.
(END) Dow Jones Newswires
November 14, 2017 02:50 ET (07:50 GMT)