David BurrowsHenkel, the German chemical and consumer goods company, has reported a fall in third-quarter net profits, citing a volatile market environment and negative currency effects. However, the company has raised its forecast for adjusted earnings per preferred share.
The maker of Dial soap and Purex laundry detergent reported third-quarter net profit of €564m compared with €576m during the same period the previous year. Adjusted net income for the quarter was €666mn compared with €616m.
Sales for the quarter were up 4.9% at €4.98bn. A FactSet consensus forecast expected sales of €5.09bn.
"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.
Coronavirus affects markets
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.
