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Henkel says 2010 financial results will exceed expectations

Henkel is predicting encouraging financial results for the 2009 fiscal year, with previous financial expectations anticipated to be exceeded, according to an announcement from the company.

The manufacturer, which makes products in three areas — Home Care, Personal Care and Adhesive Technologies — announced that is has generated sales of €13.57 billion (AUD$20.34 billion) over the previous four quarters, and said it expects improved results in the current financial year.

Henkel makes adhesive technologies for the Australian market from its manufacturing facility in Victoria.

While regarding the recovery of the real economy and the financial markets as still fragile, Henkel expects that its organic sales growth will outperform that of its relevant markets.

“For Henkel — and the world economy as a whole — 2009 will go down as a challenging year. Nevertheless, we have made good progress towards achieving our 2012 financial targets as proven by our outstanding results in the fourth quarter of 2009,” said Henkel Management Board chairman, Kasper Rorsted.

At a regional level, Asia-Pacific felt the effects of the economic crisis, with sales declining organically to €1.66 billion (AUD$2.48 billion), 5.8 percent below the prior-year level, according to the announcement.

Sales of the Adhesive Technologies business sector decreased by 7.1 per cent to €6.22 billion (AUD$9.32 billion) — 10.2 per cent below figures for the previous year. The decreases in the growth regions were less pronounced than in the mature markets of Western Europe and North America.

Organic sales performance for the Adhesive Technologies business sector likewise experienced a downturn, although positive growth returned in the second half of the year, Henkel says. The share of total global sales accounted for by the Asia-Pacific region rose to 12 per cent.

“In the course of the year, our Adhesive Technologies business has rebounded well from the effects of the economic crisis,” said Rorsted.

In fiscal 2010, Henkel is confident of again outperforming its relevant markets in terms of organic sales growth. A number of measures have already been introduced on the operational side, from which Henkel expects further positive momentum to develop, the announcement said.

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