Henkel maintains high pace of innovation

Good start for Henkel in a challenging environment

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Duesseldorf (euro adhoc) - Düsseldorf, May 7, 2008
Henkel maintains high pace of innovation

Good start for Henkel in a challenging environment

. Robust organic sales growth of 3.3 percent
. Operating profit (EBIT) adjusted for foreign exchange: plus 2.5 percent
. Earnings per preferred share (EPS): plus 6.3 percent
. Growth regions: 16.2 percent organic sales growth

"We made a good start to the fiscal year within a challenging economic

environment. Our robust organic sales growth, achieved despite a
sluggish US market and a strong prior-year quarter, is
encouraging. All our business sectors have contributed to this,"
said Kasper Rorsted, Chief Executive Officer of Henkel. "Development
in our growth regions was again dynamic. I am very confident
that we will meet the targets we have set ourselves for fiscal
2008. We expect the acquisition and integration of the National
Starch businesses to further boost growth. In addition, the
implementation of our 'Global Excellence' efficiency
enhancement program is proceeding on schedule."

In the first quarter of 2008, Henkel increased sales adjusted
for foreign exchange by 1.7 percent. Organic sales, i.e. adjusted
for foreign exchange and acquisitions/ divestments, increased by
3.3 percent and was within the 3 to 4 percentage range of Henkel's
guidance given at the beginning of the year. All business sectors
contributed to this performance. Overall, sales fell slightly to
3,162 million euros in the first quarter of 2008, mainly as a
result of unfavorable movements in foreign exchange.

At 320 million euros, operating profit (EBIT) was roughly at the high
level of the previous year (-0.9 percent). After adjusting for
foreign exchange, EBIT growth amounted to 2.5 percent. The
substantial increase in raw material costs, which Henkel was unable
to completely offset, had a particularly negative influence.

Return on sales (EBIT) amounted to 10.1 percent, 0.1 percentage
points above the level of the prior-year quarter. Income from
participations remained constant at 19 million euros. The net
interest result improved by 11 million euros from -49 million
euros to -38 million euros, due to lower net debt. The overall
financial result therefore improved by 11 million euros to -19
million euros. The tax rate decreased from 28.3 percent to 25.9
percent.

Due to the improved financial result and lower taxes, net
earnings for the quarter increased by 6.2 percent to 223 million
euros. After minority interests amounting to 4 million euros, net
earnings for the quarter were 219 million euros (+6.8 percent).
Earnings per preferred share increased by 6.3 percent to 0.51
euros.

Business Sector Performance

The Laundry & Home Care business sector achieved organic growth of
2.8 percent despite the exceptionally high growth rate of 11.9
percent achieved in the prior-year quarter thanks to the Persil
brand centennial. At 1,031 million euros, total sales were 3.5
percent below the prior-year figure, reflecting the 6.3 percent
negative impact of foreign exchange and divestments. Operating
profit decreased from 117 million euros to 104 million euros. This
was mainly due to the substantial increase in raw material
costs, which even countermeasures were unable to offset. The
Laundry segment experienced further organic expansion despite the
strong prior-year base. This was due particularly to an increase in
fabric softener sales following the successful launch of a range
of new fragrances. Universal detergents continued to perform
well in Eastern Europe. The Home Care segment posted
significant growth with its European dishwashing detergents
undergoing significant expansion. Air fresheners also proved to
be a growth driver in North America, with sales benefiting
from a successful product innovation featuring automatically
alternating fragrances.

The Cosmetics/Toiletries business sector continued its very
positive performance, with organic sales growth of 6.1 percent once
again significantly outperforming the relevant markets. Compared to
the prior-year quarter, sales increased nominally by 0.6 percent
to 708 million euros, and by 4.4 percent after adjusting for
foreign exchange. In addition to further good development in
Eastern Europe, Latin America and Asia-Pacific, strong growth was
registered particularly in the large Western European and US markets.
After adjusting for foreign exchange, operating profit
significantly increased by 13.4 percent, in nominal terms it
improved by 8.0 percent to 89 million euros. As a result, the EBIT
margin also strongly increased by 0.8 percent to 12.5 percent. The
Hair Cosmetics segment again reported strong growth. The major
relaunch of the Schauma brand and the première of the Taft Power
line contributed significantly to this development. Market positions
in all three categories - Colorants, Care and Styling - were further
markedly expanded. The Body Care segment again performed well
with strong support coming from the two major brands Fa and
Dial. The Skin Care segment developed very well, supported by the
Diadermine brand with its new product lines. The Oral Care
segment underwent further growth, particularly as a result of the
launch of Theramed Titan Fresh. The Hair Salon segment also
posted a very good growth rate in all regions.

Organic sales of the Adhesives Technologies business sector
increased 2.4 percent. The comparable figure in the previous
year was a very high 9.1 percent, arising from strong growth in
the construction sector. This in turn was due to the mild weather
at the time. Negative foreign exchange effects and the divestment
of the water treatment business resulted in sales declining to
1,364 million euros, 3.0 percent below the comparable
prior-year figure. Despite the significant increase in raw material
costs, operating profit rose 2.3 percent to 153 million euros.
After adjusting for foreign exchange, the increase was 6.4
percent. This development was due primarily to implemented
countermeasures and an increased focus on businesses offering higher
levels of profitability. In the Craftsmen and Consumer segment,
sales in Western Europe and North America were below the levels of
the previous year due to declining markets. The strongest growth
was again achieved by the Building Adhesives segment, with the
business performing particularly well in Eastern Europe and Middle
East/North Africa. Henkel is further expanding its production
capacities in these regions in order to be able to cover the
growing demand encountered there. The Industry segment developed
well overall. The one exception was the North America business
which turned in a weaker performance due to prevailing market
conditions. Particularly strong results were achieved with products
for industrial maintenance, repair and overhaul applications
under the Loctite brand. The packaging adhesives business received
a boost through the innovative hotmelt adhesives under the
Technomelt Supra brand.

Regional Performance

Organic sales in the Europe/Africa/Middle East region increased by
4.2 percent, with all the business sectors contributing. Foreign
exchange and divestments had a negative impact of 4.1 percent.
Overall, sales remained roughly at the level of the previous year
with a total of 2,119 million euros. In Eastern Europe, sales
once again underwent a double-digit percentage increase, but
Western Europe including Germany was unable to maintain the
good growth momentum of the prior-year quarter. Overall, the
region accounted for a 67 percent share of total sales. Sales in
the North America region decreased by 3.1 percent in organic
terms. Due to the prevailing market conditions, Adhesives
Technologies and Laundry & Home Care experienced only
sluggish growth. The weakness of the US dollar led to a negative
foreign exchange effect of 11.1 percent. With sales of 559 million
euros, this region accounted for an 18 percent share of total
sales. The Latin America region posted a sales increase of 3.1
percent to 169 million euros, with growth after adjusting for
foreign exchange coming in at 8.8 percent. Organic sales rose by
8.9 percent, with all business sectors contributing. The share
of sales of the region remained unchanged at 5 percent. Business
in the Asia-Pacific region likewise developed well. Sales
increased by 3.8 percent to 256 million euros, and organic
growth, again supported by all the business sectors, amounted to
9.4 percent. The region's share of total sales was 8 percent.

In the growth regions of Eastern Europe, Africa, Middle East, Latin
America and Asia (excluding Japan), sales rose by 10.0 percent to
1,101 million euros. This corresponds to a share of total sales
of 35 percent. After adjusting for foreign exchange, sales rose
by 14.6 percent. Organic growth amounted to 16.2 percent, with all
business sectors contributing.

Major Participation

Ecolab Inc., St. Paul, Minnesota, USA, in which Henkel has a 29.4
percent stake, reported sales of 1,458 million US dollars in the
first quarter of 2008, an increase of 16.2 percent compared to the
previous year. Net earnings for the quarter rose by 15.0 percent to
102.9 million US dollars. The market value of this participation as
of March 31, 2008, amounted to around 2.0 billion euros.

Updated Sales and Profit Forecast 2008

Henkel is confident it will be able to meet the previously announced
sales and profit targets excluding the National Starch businesses.

Taking into account the National Starch businesses acquired as of
April 3, 2008, Henkel's sales and profit forecast now reads as
follows:

Henkel expects to achieve organic sales growth (after adjusting
for foreign exchange and acquisitions/divestments) of 3 to 4
percent.

Henkel expects to increase operating profit adjusted for
restructuring charges and one-time gains and charges ("adjusted
EBIT") in the mid-teen percentage range (2007 base: 1,370 million
euros).

Henkel expects earnings per preferred share adjusted for
restructuring charges and one-time gains and charges ("adjusted
EPS") to increase in the mid single- digit percentage range (2007
base: 2.19 euros).

Included in this forecast are initial savings arising from
the "Global Excellence" efficiency enhancement program and the
integration of the National Starch businesses.

This information contains forward-looking statements which are
based on the current estimates and assumptions made by the
corporate management of Henkel AG & Co. KGaA. Forward-looking
statements are characterized by the use of words such as expect,
intend, plan, predict, assume, believe, estimate, anticipate, etc.
Such statements are not to be understood as in any way guaranteeing
that those expectations will turn out to be accurate. Future
performance and the results actually achieved by Henkel AG & Co.
KGaA and its affiliated companies depend on a number of risks
and uncertainties and may therefore differ materially from the
forward-looking statements. Many of these factors are outside
Henkel's control and cannot be accurately estimated in advance, such
as the future economic environment and the actions of
competitors and others involved in the marketplace. Henkel neither
plans nor undertakes to update any forward-looking statements.

Press Contacts:

Lars Witteck Wulf Klüppelholz
Phone: +49-211-797-2606 Phone: +49-211-797-1875
Fax: +49-211-798-9208 Fax: +49-211-798-9208

Henkel AG & Co. KGaA

Head of Corporate Communications:
Ernst Primosch, Corporate Vice President

Photo material available for download at http://henkel.com/press. For
further details on the figures for the first quarter, please go to:
http://www.henkel.com/ir

press@henkel.com

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end of announcement euro adhoc
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ots Originaltext: Henkel AG & Co. KGaA
Im Internet recherchierbar: http://www.presseportal.de

Further inquiry note:

Irene Honisch

Assistent Corporate Communications

Tel.: +49 (0)211 797-5668

E-Mail: irene.honisch@henkel.com

Branche: Consumer Goods
ISIN: DE0006048432
WKN: 604843
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