(Updates with comments from trader, details on guidance.)

 
   By Nathan Allen 
 

Shares in Henkel AG & Co. KGaA (HEN.XE) traded lower after the German consumer-goods and chemical company posted weaker-than-expected financial guidance alongside its preliminary results for 2018.

Henkel said it expects a challenging 2019 that will be characterized by high uncertainty and volatility, with mixed market dynamics and continued headwinds from currencies and commodities.

Against this backdrop, the maker of Dial soap and Purex laundry detergent plans to step up growth investments, which it expects will hit earnings per share. Henkel expects organic sales growth of between 2% and 4% in 2019.

According to one trader, market views are for sales growth of 4%.

The group anticipates an adjusted margin on earnings before interest and taxes in the range of 16% to 17% compared with 17.6% in 2018. The trader said this forecast is also below consensus expectations.

Henkel's 2018 EBIT rose 1% to 3.50 billion euros ($3.98 billion), while sales edged down to EUR19.9 billion from EUR20.0 billion, missing earlier guidance for growth of between 2% and 4%.

A FactSet-compiled consensus had 2018 sales at EUR20.05 billion.

At 0934 GMT shares trade 5.6% lower at EUR91.56.

Write to Nathan Allen at nathan.allen@dowjones.com

(END) Dow Jones Newswires

January 21, 2019 04:53 ET (09:53 GMT)