Henkel Guides 2021 Earnings to Lower End of Range; 3Q Sales Rose

   By Ed Frankl 
 

Henkel AG said Monday that third-quarter sales rose, though continued raw-material and supply-chain issues meant it is backing its full-year earnings outlook at the lower end of its previously guided range.

The German consumer-goods company said sales rose 1.9% to 5.09 billion euros ($5.89 billion), rising 3.5% on an organic basis, driven by its Adhesive Technologies segment. Sales matched expectations and topped views of 2.6% in organic sales growth, according to analysts' estimates provided by the company.

The company said demand in the consumer businesses continued to normalize, and that there was a continuing recovery in its industrial production business.

Henkel confirmed its 2021 outlook for organic growth at 6%-8%, but said its full-year adjusted earnings before interest and taxes margin and adjusted earnings per share would be at the lower end of its previously guided ranges, due to additional negative impacts from increased raw-material and transport costs.

"The effects of the global [coronavirus] crisis, the extremely tense situation on raw-material markets and disruptions in global supply chains continued to have a strong impact on our market environment in the third quarter," Henkel Chief Executive Carsten Knobel said.

The full-year adjusted EBIT margin is now expected at 13.5% with an adjusted EPS increase in the high single-digit percentage range.

Write to Ed Frankl at [e-mail]

(END) Dow Jones Newswires

November 08, 2021 02:04 ET (07:04 GMT)

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