Düsseldorf, Germany (ots-PRNewswire) - Net earnings increase of 25
percent to 505 million euro / Dividend proposal: 1.06 euro per
ordinary share, 1.12 euro per preferred share
Fiscal 2000 was another outstanding year for the Henkel Group.
Henkel Group sales increased by 12.5 percent to 12.8 billion euro.
Sales in Europe were up 7 percent. Henkel's German companies
recorded growth of 5 percent, while the Group companies in the other
European countries showed an increase of 8 percent. The businesses in
North America increased sales by 17 percent to 2.2 billion euro. In
Latin America, sales grew 29 percent to 577 million euro. Sales in
Africa rose by 53 percent to 216 million euro. In the Asia/Australia
region, sales were up 37 percent to a total of 1.3 billion euro.
The increase in operating profit (EBIT) by 10.9 percent to 950
million euro was due to strong sales growth against a cost structure
that largely remained unchanged compared with the previous year. The
EBIT return on sales amounted to 7.4 percent. At 13.5 percent, the
return on investment, i.e. EBIT in percent of net operating assets,
was 0.3 percentage points up on the previous year.
Net earnings for the year rose by 25 percent to a new record
figure of 505 million euro. This made fiscal 2000 the seventh year in
sequence to show an increase in net earnings.
At 1,159 million euro, cash flow was 7 percent lower than in the
Dividend proposal: The Henkel management will be recommending to
the Annual General Meeting on April 30 to increase the dividend to
1.06 euro per ordinary share (1999: 0.87 euro) and to 1.12 euro per
preferred share (1999: 0.93 euro). For shareholders fully subject to
taxation in Germany who are entitled to the tax credit, the gross
distribution - i.e. cash dividend plus tax credit - will total 1.43
euro per ordinary share (1999: 1.24 euro) and 1.52 euro per preferred
share (1999: 1.32 euro). The dividend payout is thus equal to 33.5
percent (1999: 36 percent) of the net earnings of the Henkel Group
after minority interests.
All business sectors markedly increased sales and earnings in the
year under review:
The Adhesives business sector increased sales by 18.3 percent to
3.0 billion euro. Operating profit (EBIT) improved by 7.9 percent to
256 million euro.
Sales of the Cosmetics/Toiletries business sector rose by 11.9
percent to 2.0 billion euro. Operating profit (EBIT) was up 8.8
percent at 134 million euro.
Sales recorded at the Laundry & Home Care business sector grew by
10.2 percent to 2.8 billion euro. Operating profit (EBIT) increased
by 9.8 percent to 195 million euro.
Sales of the Industrial and Institutional Hygiene/Surface
Technologies business sector rose 10.3 percent to 2.0 billion euro.
Operating profit (EBIT) improved by 18.4 percent to
175 million euro.
The Chemical Products business sector (Cognis) increased sales by
12.2 percent to 2.9 billion euro. Operating profit (EBIT) grew by
21.2 percent to 220 million euro.
Capital expenditures in fiscal 2000 amounted to 1,359 million
euro. Of this total, 693 million euro were invested in intangible
assets, 622 million euro in property, plant and equipment and 44
million euro in financial assets. A total of 609 million euro was
invested in the established businesses, a substantial increase
compared with the previous year (476 million euro).
Expenditure on research and development in 2000 increased by 15
percent to 320 million euro. This amounted to 2.5 percent of sales.
This rise is mainly due to an intensification of innovation activity
in the business sectors and to research cooperations established in
the course of the realignment of Henkel's research activities. As an
average for the year, around 4,000 employees worked in research,
product development and application engineering worldwide.
The number of employees in the Henkel Group rose in fiscal 2000 by
4,507 to a total of 60,903. This increase was predominantly due to
the integration of acquired companies. The number of employees in
Germany grew slightly to 15,878. The proportion of employees working
outside Germany rose further to around 74 percent.
Outlook: Henkel has set itself a number of ambitious goals for
fiscal 2001, which is marked by the motto "125 years. focus:future".
Above all, Henkel is keen to maintain and continue its growth
dynamics with new, innovative brands and system solutions. The target
is again to grow stronger than the markets.
On the other hand, Henkel also expects special charges in fiscal
The restructuring charges announced by the associated company The
Clorox Company, in which Henkel holds a 26.6 percent interest, will
adversely affect Henkel's net earnings by approximately 35 million
euro. Henkel is confident to offset these extra costs at least
partially with extraordinary income. Henkel will also be affected by
the lower than expected earnings in the ongoing business announced by
Clorox last Wednesday.
Part 2 follows
Original-Content von: Henkel AG & Co. KGaA, übermittelt durch news aktuell