Nov. 3 (Bloomberg) -- Beiersdorf AG, the maker of Nivea skin cream, reported profit that beat analysts’ estimates and raised its margin forecasts, saying both its consumer and Tesa industrial-tape units will outpace their markets.

Third-quarter net income fell 10 percent to 98 million euros ($145 million), the Hamburg-based company said today, surpassing the 89.2 million-euro average estimate of five analysts compiled by Bloomberg. The consumer unit’s operating margin for the year will be about 11 percent, Beiersdorf said, up from a forecast of above 10 percent.

Chief Executive Officer Thomas Quaas said Tesa is seeing a “trend reversal in its industrial business,” adding that both divisions will grow faster than their markets this year. Profit at Beiersdorf has fallen for three straight quarters as carmakers and electronics manufacturers reduce their orders of adhesives, while European retailers stock less Nivea cream.

“There was a slightly more positive/optimistic feel to these results,” Sanford C. Bernstein analyst Andrew Wood wrote, citing the margin forecast. The New York-based analyst maintained his “underperform” rating on the stock and a target price of 32.50 euros.

Beiersdorf rose 3.3 percent in Frankfurt trading today, the biggest gain in almost two months. The shares gained 1.38 euros to 42.77 euros.

Tesa’s operating margin for the year will be at least 2 percent, the company said today. The unit’s third-quarter revenue dropped 8.5 percent to 195 million euros, as sales slid in all regions because of the global economic decline.

‘Difficult’ 2010

About four-fifths of Tesa’s revenue comes from industrial customers, who have been trimming orders for a year.

“The business year 2010 will be as difficult as 2009,” Chief Executive Officer Thomas Quaas said on a conference call.

Total sales declined 3.4 percent to 1.41 billion euros, with revenue in the consumer division declining 1.6 percent to 1.22 billion euros. In the first nine months of 2009, sales fell 6.8 percent in Europe, rose 11 percent in the Asia-Africa- Australia region and climbed 4.4 percent in the Americas.

Beiersdorf, in which closely-held coffee retailer Maxingvest owns a majority stake, has roots going back to an 1882 bandage patent. The company introduced the first Nivea cream in 1911 and has used the blue-and-white packaging for which the brand is known since 1925.

Larger domestic competitor Henkel AG & Co. last week unexpectedly reported third-quarter operating profit that beat analysts’ estimates.

To contact the reporter on this story: Holger Elfes in Dusseldorf at helfes@bloomberg.net.

Last Updated: November 3, 2009 11:40 EST