Henkel Q3 Net Income Rises 70 Percent

GEORGE FREY

FRANKFURT (AP) — German consumer goods company Henkel AG said Wednesday its third quarter net income rose 70 percent due to effects including charges in the year-ago period, but sales fell at some divisions as the downturn affected demand.

The maker of Persil laundry detergent and Dial soap said net income rose 70 percent to euro172 million ($257.42 million) from euro101 million in 2008.

Revenue for the third quarter fell 7 percent to euro3.5 billion from euro3.8 billion in the third quarter a year ago, led by order declines from large customers in its adhesives division.

Henkel, based in Duesseldorf, said it expects the consumer business to perform well in the fourth quarter, while the adhesives division — which includes brands like Pattex and Loctite — will improve compared to the first nine months of the year.

The company said that despite the recent stabilization of markets, it remained difficult to assess the overall economic situation and how it's likely to develop.

Henkel said, however, that declines in raw material costs would help earnings.