Düsseldorf/Germany (ots-PRNewswire) -
-- Sales increased by 4.1 percent to 11.4 billion euro
-- Operating profit improved by 8.3 percent to 857 million euro
-- Net earnings at 404 million euro reached a new record high
-- Dividends again increased: 0.87 euro per ordinary share, 0.93
euro per preferred share
-- Strong start into the year 2000
-- Sales: 11.4 billion euro, plus 4.1 percent
Despite a difficult economic environment the Henkel Group has
mastered the challenges in 1999 very well. Sales of the Henkel Group
increased by 4.1 percent to 11.4 billion euro in 1999 (1998: 10.9
The economic recovery in Europe where sales increased by 2.2
percent to 8.0 billion euro, played a major role in this development.
Businesses in North America increased sales by 7.8 percent to 1.9
billion euro, mainly due to the rise in the exchange rate of the
dollar against the euro. In Asia the economic recovery and positive
exchange rate effects were markedly reflected in the sales figure
which increased by 20.9 percent to 926 million euro.
Operating profit: 857 million euro
Operating profit (EBIT) rose to a new record of 857 million euro,
an increase of 8.3 percent. All business sectors contributed to this
good performance. Return on investment improved from 12.4 to 13.2
Net earnings: 404 million euro
With an increase of 8.6 percent, net earnings reached a new record
high of 404 million euro.
Cash flow: 1,247 million euro
Cash flow of the Henkel Group increased by 17.1 percent in 1999 to
1,247 million euro. The ratio of cash flow to sales was 11.0 percent.
Earnings per share:
Based on calculation in accordance with IAS earnings per ordinary
share were 2.46 euro (2.28 euro), per preferred share 2.54 euro (2.33
Henkel's recommendation to the Annual General Meeting on May 8,
2000 will be for a dividend of 0.87 euro (1998: 0.79 euro) per share
to be paid on the ordinary shares and 0.93 euro (1998: 0.84 euro) per
share on the preferred shares. For per share to be paid on the
ordinary shares and 0.93 euro (1998: 0.84 euro) per share on the
preferred shares. For shareholders liable to tax at the full rate who
are entitled to the tax credit, the gross distribution -- i.e. the
cash dividend plus tax credit -- will total 1.24 euro (1998: 1.13
euro) on each ordinary share and 1.32 euro (1998: 1.20 euro) on each
preferred share. Total dividends increase by 10.1 percent to 131
million euro. The payout ratio, i.e. the total dividends in percent
of net earnings after minority interests, equals 36.0 percent (1998:
Henkel now reports on the following five sectors: Adhesives,
Cosmetics/Toiletries, Detergents/Household Cleaners, Industrial and
Institutional Hygiene/Surface Technologies and Chemical Products
carved-out under the name of Cognis. This segment reporting is
completely in conformity with IAS.
The business sector Adhesives achieved a sales increase of 5.4
percent to 2.5 billion euro. Operating profit increased by 16.5
percent to 237 million euro.
Sales of the business sector Cosmetics/Toiletries rose by 6.4
percent to 1.8 billion euro, while operating profit increased by 11.4
percent to 123 million euro.
The business sector Detergents/Household Cleaners attained a sales
increase of 2.3 percent to 2.6 billion euro. Operating profit
improved by 7.6 percent to 177 million euro.
The new business sector Industrial and Institutional
Hygiene/Surface Technologies increased sales by 4.2 percent to 1.8
billion euro. Operating profit rose by 12.2 percent to 148 million
Sales of the Chemical Products business sector (Cognis) increased
by 4.4 percent to 2.6 billion euro. Operating profit improved by 12.0
percent to 182 million euro. This figure includes both extraordinary
gains from the disposal of the paper auxiliaries business and
Capital expenditures: 746 million euro
Capital expenditures on property, plant and equipment, intangible
assets and financial fixed assets in 1999 amounted to 746 million
euro. Property, plant and equipment accounted for 440 million euro,
intangible assets for 133 million euro, and financial assets for 173
million euro. In the year 2000 investments in property, plant and
equipment will be at a similar level as those in 1999. The focus will
be on the business sectors Adhesives, Detergents/Household Cleaners
and Chemical Products.
Research and development: 279 million euro
Expenditure on research and development in the Henkel Group in
1999 was at 270 million euro, up by 11.6 percent compared with the
previous year. As an average for the year, around 3,800 employees
were employed in research, development and application engineering
The increasing globalization of the Henkel Group is reflected in
the development of personnel. In the last five years, the number of
employees outside Germany has increased by 14,274 to a total of
40,984. The proportion of total employees located outside Germany as
per end of 1999 was at 72.7 percent. The total number of employees
decreased in 1999 by 223 to 56,396.
The prospects for Henkel's businesses in the year 2000 are
positive. Sales and earnings registered double-digit growth over the
first two months.
Henkel's markets will benefit most of all from the continued
cyclical upturn in the chemicals sector, the sustained high level of
activity in the automotive industry, the gradual improvement in the
construction sector and the continuing rise in consumer spending
against the background of stronger economic growth in Europe.
For the year 2000 Henkel has chosen the motto "Year of organic
growth". Growth through innovation, international roll-out of
successful brand-name products and systems concepts, and
time-to-market are central elements of this strategy. The measures
introduced in the "Year of ROI" will further be pursued.
Henkel's targets for the year 2000 are again ambitious. Another
marked improvement in sales and earnings shall be achieved this year.
Henkel is a worldwide operating specialist in adhesives,
brand-name products and in systems businesses with affiliates in over
70 countries. Henkel is the number one producer of Adhesives, Surface
Technologies and Industrial and Institutional Hygiene (jointly with
Ecolab Inc.) on a worldwide scale. In Detergents it ranks second on
Continental Europe and in Cometics Henkel holds the number three
position in Europe. Cognis, the recently carved out chemicals
business is the world's leading producer of Oleochemicals.
ots Original Text Service: Henkel Group
Contact: Investor Relations, Magdalena Moll, +49-2-11-7-97-16-31, or
Waltraud Mueller, +49-2-11-7-97-72-78, both of Henkel, fax,
Web site: http://www.henkel.com
Original-Content von: Henkel AG & Co. KGaA, übermittelt durch news aktuell