Henkel Shares Fall on Disappointing Guidance, 2018 Results -- Update
21 January 2019 - 9:08PM
Dow Jones News
(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)
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