(Includes information on previous guidance, catalyst for guidance revision, CEO quote and details on adhesives performance in 2Q)

 
   By Anthony Shevlin

Henkel AG & Co. KGaA's (HEN.XE) second-quarter sales grew despite a currency hit as its North American consumer business recovered from earlier supply-chain problems, and the company updated its full-year guidance to reflect stronger headwinds.

The maker of Dial soap and Purex laundry detergent said Thursday that sales came to 5.14 billion euros ($5.82 billion) compared with EUR5.10 billion the year earlier.

The German company said currencies negatively affected its reported sales, with the hit valued at around EUR310 million.

Sales in the company's adhesives-technologies business unit rose 5.2% on an organic basis in the second quarter, the company said.

Earnings before interest and taxes were EUR814 million compared with EUR839 million for the period last year. The company's EBIT margin was 15.8%.

"Our North American consumer businesses returned to growth with service levels back to normal," Henkel Chief Executive Hans Van Bylen said.

In March the company warned that its performance in North America during the first quarter would be affected by problems in its supply chain resulting from a change in transportation and logistics systems.

Henkel updated its full-year guidance to reflect stronger currency and material-pricing headwinds.

The company confirmed its full-year sales-growth guidance of between 2% and 4%, but now expects its adhesives-technologies business unit to grow between 4% and 5% compared with previous expectations of 2% to 4% growth.

The company cut its 2018 adjusted earnings-per-share growth guidance to between 3% and 6%, down from previous guidance of between 5% and 8%.

Henkel raised its adjusted EBIT-margin guidance to around 18%, up from previous expectations of more than 17.5% growth.

"The outlook underlines our continued focus on sustainable profitable growth," Mr. Van Bylen said.

Write to Anthony Shevlin at anthony.shevlin@dowjones.com

(END) Dow Jones Newswires

August 16, 2018 02:53 ET (06:53 GMT)

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