Germany's Henkel to shed 3,000 jobs

22nd February 2005, Comments 0 comments

22 February 2005, DUSSELDORF - German detergent and cosmetics producer Henkel is to shed about 500 jobs in Germany and 3,000 worldwide by the end of 2006, the company announced on Tuesday. The company, which produces Persil and other top brand-name soaps, cosmetics and adhesives, will fully or partially close four of its factories, including two in Germany. Announcing its 2004 results, chief executive Ulrich Lehner said the group would be launching a new product offensive to counter tough domestic conditio

22 February 2005

DUSSELDORF - German detergent and cosmetics producer Henkel is to shed about 500 jobs in Germany and 3,000 worldwide by the end of 2006, the company announced on Tuesday.

The company, which produces Persil and other top brand-name soaps, cosmetics and adhesives, will fully or partially close four of its factories, including two in Germany.

Announcing its 2004 results, chief executive Ulrich Lehner said the group would be launching a new product offensive to counter tough domestic conditions and the expansion of the discount market.

The job reductions are part of a cost-cutting programme introduced late last year. The cutbacks represent about 5 percent of the workforce in Germany.

Henkel said it had been able to make good on sluggish German spending thanks to expansion in the United States including the acquisition of US-based Dial.

Total group sales in 2004 rose by 12.3 percent to EUR 10.6 billion, while operating profit before exceptional items climbed 12.7 percent to EUR 800 million.

Earnings before interest and tax are expected to grow between 15 and 19 percent this year. Henkel also forecasts a sales growth of between 3 and 4 percent excluding currency fluctuations and the impact of acquisitions and divestments.

"Strengthened by our US business and our presence in growth regions we intend to grow faster than our relevant markets in 2005," Lehnder said.

Management is to propose an increase in dividend payout from EUR 1.20  to EUR 1.30  per preferred share and from EUR 1.14 to EUR 1.24 per ordinary share to the annual meeting. 

DPA

Subject: German news 

 

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