Henkel AG, the German maker of Loctite glue and Persil washing detergent, reported first-quarter earnings that beat analyst estimates on higher demand from emerging markets such as Asia, Africa and the Middle East.
Earnings before interest and taxes, excluding one-time items and restructuring costs climbed 3.3 percent to 619 million euros ($862 million), the Dusseldorf, Germany-based company said in a statement today. Analysts had predicted 600.8 million euros, according to a Bloomberg survey.
Chief Executive Officer Kasper Rorsted has said he’s looking for acquisitions of any size should they fit the company’s strategy. Henkel is seeking to expand in emerging markets and plans to have 60 percent of workers and 50 percent of revenue in those markets by 2016.
“We delivered a very strong performance in our emerging markets, while we also grew in our mature markets,” Rorsted said in today’s release.
Quarterly sales fell 2.6 percent to 3.93 billion euros, weighed down by currency effects. Analysts estimated 3.96 billion euros. Net income increased 14 percent to 449 million euros.
Henkel, founded in 1876 as a detergent maker in Aachen, Germany, has merged administrative functions across units and centralized purchasing operations into eight global hubs to cut costs. Rorsted intends to further improve shared logistics processes, the company has said.
Sales will again grow 3 percent to 5 percent on an organic basis this year, while the adjusted Ebit margin will increase to 15.5 percent, Henkel reiterated today. Earnings per preferred share will increase in the “high single digits,” Henkel said.
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