Henkel Sees Lower Earnings for Fiscal 2020
December 12 2019 - 12:59PM
Dow Jones News
By Pietro Lombardi
Henkel AG & Co. KGaA (HEN.XE) expects lower earnings for
fiscal 2020 as investment in advertising and IT weigh on results,
an outlook that the company says is below market expectations.
The maker of Dial soap and Purex laundry detergent said Thursday
that it expects adjusted earnings per preferred share in 2020 to
fall by a mid-to-high single-digit percentage at constant exchange
rates when compared with the roughly 5.45 euros ($6.05) it forecast
for fiscal 2019.
Adjusted EBIT margin is seen at about 15%, compared with an
expected margin of 16.2% in 2019.
"In view of an uncertain industrial environment and investments
in marketing and advertising as well as digitalization and IT
expected to increase versus 2019 in order to sustainably strengthen
the business in the long-term, Henkel expects earnings to be
negatively impacted in the fiscal year 2020," it said.
The company expects organic sales growth of 0% to 2% in
2020.
Write to Pietro Lombardi at pietro.lombardi@dowjones.com
(END) Dow Jones Newswires
December 12, 2019 12:44 ET (17:44 GMT)
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