Henkel reports good organic growth

National Starch acquisition and efficiency enhancement program
characterize Q2

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Düsseldorf (euro adhoc) - Düsseldorf, August 6, 2008 National Starch
acquisition and efficiency enhancement program characterize Q2

Henkel reports good organic growth

. Strong sales growth of 11.4 percent
. Organic sales growth: plus 6.1 percent
. Adjusted operating profit (EBIT): plus 7.8 percent
. Sales in growth regions: plus 19.5 percent

"We achieved highly encouraging second quarter organic sales growth, despite a

difficult economic environment still characterized by significantly
increasing raw material costs and a weak US dollar," said Henkel CEO
Kasper Rorsted. "Our organic growth was supported by all our
business sectors. The improvements were primarily from our growth
regions, while development in Western Europe was restrained. We
were able to further increase adjusted operating profit. The
integration of the National Starch businesses, which brought us a
significant boost in sales, and the implementation of our
efficiency enhancement program aligned to achieving a sustainable
improvement in our competitiveness, continue on track with good
progress being achieved. Despite the challenging
environment, we are confident regarding the development in the
further course of the year."

In its second quarter of 2008, Henkel increased sales by 11.4 percent
to 3,668 million euros. This strong rise is due to good organic
sales growth and the first-time consolidation of the newly
acquired National Starch businesses. After adjusting for foreign
exchange, sales rose by a substantial 17.7 percent.

Organic sales, or those adjusted for foreign exchange and
acquisitions/divestments, increased by 6.1 percent, with all business sectors
contributing.

Operating profit (EBIT) was heavily impacted by restructuring charges
amounting to 256 million euros for the quarter under review. This
corresponds to around one third of the restructuring charges
previously announced for the year as a whole, with the total
expected to be about 770 to 780 million euros. The charges
relate primarily to a global program for efficiency enhancement and
the integration of the National Starch businesses. As a consequence,
EBIT decreased to 113 million euros. Conversely, operating profit,
adjusted for restructuring charges and one-time gains and charges
("adjusted EBIT"), rose by 7.8 percent to 372 million euros.

EBIT margin amounted to 3.1 percent, while adjusted EBIT margin
decreased from 10.5 percent to 10.1 percent. This decline is
primarily attributable to the heavy impact of raw material price
increases on the Laundry & Home Care and the Adhesive Technologies
business sectors. Investment result, mainly attributable to
Henkel's participation in Ecolab, remained constant at 24 million
euros, despite the weaker US dollar. Net interest expense
increased by 47 million euros, from -37 million to -84 million
euros, due primarily to the higher net debt arising from payment
of the purchase price for the National Starch businesses but
also to higher interest rates. There was a corresponding
increase in the negative financial result from -13 million euros to
-60 million euros. The tax rate fell from 26.7 percent to 20.8
percent.

Due to lower EBIT and the increase in the negative financial
result, net earnings for the quarter decreased to 42 million
euros. After minority interests totaling 4 million euros, net
earnings for the quarter were 38 million euros. At 227 million
euros, adjusted quarterly net earnings after minority interests
were 4.6 percent below the prior-year level. Earnings per
preferred share decreased to 0.09 euros. The adjusted figure
declined by 5.5 percent to 0.52 euros.

Business Sector Performance

Organic sales for the Laundry & Home Care business sector increased
by a good 3.9 percent. At 1,012 million euros, sales overall were
1.1 percent below the previous year. Foreign exchange had a
negative impact of 4.7 percent. Operating profit decreased from 111
million euros to 96 million euros, reflecting in particular
the ongoing increase in raw material prices that lead to a
substantial rise in input costs. Despite the price increases
implemented by Henkel and measures taken to reduce costs and improve
efficiency, the company was not yet able to completely offset these
additional expenses. Organic growth in the Laundry segment was
primarily due to results in Eastern Europe. Here, both the
company's heavy-duty detergents and its fabric softeners posted
a positive sales performance. The good sales growth in North America
was due to the high level of market acceptance of the change-over
to ultra concentrates, and to the successful launch of Purex
Natural Elements. This innovation with mainly natural ingredients
is in line with consumers' growing environmental awareness.
Organic sales of the Home Care segment underwent a substantial
increase with the greatest impetus again coming from Eastern Europe.
The main contributors to this sales improvement were Henkel's
dishwashing detergents and WC cleaning and hygiene products. There
was also an increase in air freshener sales in North America,
once again contributing to an overall positive performance.

With strong organic sales growth of 5.9 percent, the
Cosmetics/Toiletries business sector was able to maintain the highly
positive trend of the last few quarters, with all regions
contributing. In addition to an extremely positive development in
North America, the businesses in Eastern Europe and Latin
America also generated particularly strong growth. Compared to the
prior-year quarter, nominal sales rose by 1.2 percent to 779 million
euros, with growth after adjusting for foreign exchange rising to
5.8 percent. Despite rising material costs, operating profit
increased by 8.3 percent after adjusting for foreign exchange,
outstripping the rise in sales. Hence, the EBIT margin also
improved to 12.8 percent. The Hair Cosmetics segment continued to
post strong growth, further extending its market positions in
all its categories - Colorants, Care and Styling. Major
contributions to this improvement came from the international
relaunch of the Schauma brand, the debut of the Taft Power Gels
Waterproof series and the rollout of Diadem Care Gloss. The Body
Care segment also continued to perform well. Developments in the
deodorants business were particularly encouraging with the launch of
the Fa Rice Dry innovation, the first Fa deodorant with natural
rice extract. The Skin Care segment was able to further expand
its market position thanks to the high level of performance
turned in by its most important international brand, Diadermine,
with the focus this time on the launch of an innovative line of
anti-oxidant treatments. The Oral Care segment was also able to make
further market share gains thanks in particular to the launch of
Theramed Titan Fresh and Pro Natur. The Hair Salon segment
continued to post very good organic growth. The innovative
strength of this business was again apparent with the launch of the
new OSiS Design Mix line and of Igora Royal Absolutes, the first
anti-aging coloration series.

Organic growth in the Adhesive Technologies business sector
amounted to a highly encouraging 7.9 percent. Nominal sales rose
by 26.1 percent to 1,816 million euros, and by 34,6 percent after
adjusting for foreign exchange, due primarily to the
acquisition of the Adhesives and Electronic Materials
businesses of National Starch. Operating profit increased by 21.1
percent to 195 million euros, and by 29.3 percent after adjusting
for foreign exchange. In the Craftsmen and Consumer segment,
business was affected by the tough conditions prevailing in
North America and Western Europe. Major craftsmen markets in
Western Europe showed a decline, and the severe real estate downturn
in the USA continued unabated. By contrast, the Eastern
European region continued to develop successfully. There was
again strong growth in the Building Adhesives segment, supported
in particular by very good results in Eastern Europe and the
North Africa/Middle East region. The Industry segment benefited
significantly from the acquisition of the National Starch
businesses while also performing well in organic terms. There was a
further increase in sales in Western Europe despite a difficult
business environment. The products for industrial maintenance,
repair and overhaul under the Loctite brand again generated
positive results. Activities in the automotive and durable
goods segments were stepped up with the launch of TecTalis, an
innovative metal pre- treatment product. The performance of the
National Starch businesses eased slightly in the face of a
slowdown in the semiconductor and electronic products markets.

Regional Performance

Organic sales in the Europe/Africa/Middle East region
increased by an encouraging 6.2 percent, with all business
sectors contributing. After adjusting for foreign exchange, sales
rose by 10.4 percent. At 2,283 million euros, total sales were
8.2 percent above the level of the previous year. Significant
double-digit organic growth rates were achieved in Eastern Europe
and Africa/Middle East, while development in Western Europe
including Germany underwent a slight decline. Overall, the share of
sales accounted for by the region amounted to 62 percent.
Organic sales for the North America region increased by a
good 3.8 percent. Here, the performance of the
Cosmetics/Toiletries business sector was encouraging as was that of
Laundry & Home Care following a relatively slow start to the year.
The weakness of the US dollar led to a negative foreign exchange
impact amounting to 16.3 percent. Sales adjusted for foreign
exchange rose by 23.0 percent, with the acquired National Starch
businesses making a significant contribution. With sales of 690
million euros, this region contributed 19 percent to total sales.
The Latin America region reported an increase in organic sales of
13.3 percent, with all business sectors contributing. After
adjusting for foreign exchange, sales growth amounted to 21.0
percent. With sales of 202 million euros, the region's share of the
total remained at 5 percent. The businesses in the Asia-Pacific
region likewise performed well. Sales increased by 44.9 percent to
432 million euros, due primarily to the businesses acquired from
National Starch. Organic growth, also supported by all business
sectors, was 6.6 percent. The share of total sales accounted for
by the region grew by 3 percentage points to 12 percent.

In the growth regions of Eastern Europe, Africa, Middle East, Latin
America and Asia (excluding Japan), sales increased by 19.5 percent
to 1,336 million euros, corresponding to a share of consolidated
sales of 36 percent. After adjusting for foreign exchange, sales
rose by 27.0 percent while organic growth amounted to 15.7 percent,
with all business sectors contributing.

Major Participation

Henkel has a 29.4 percent stake in Ecolab Inc., St. Paul,
Minnesota, USA. In the second quarter of 2008, Ecolab Inc.
generated sales of 1,570 million US dollars. This corresponds to
a rise of 15.2 percent. Net earnings for the second quarter
increased versus the prior year quarter by 26.0 percent to 139.0
million US dollars. The market value of this participation as of June
30, 2008, amounted to around 2.0 billion euros.

Updated Sales and Profit Forecast 2008

Given the business developments of the first half of 2008 and
taking into account the National Starch businesses acquired as of
April 3, Henkel has specified its sales and profit forecast for
full fiscal 2008 as follows:

Henkel expects to achieve organic sales growth (after adjusting
for foreign exchange and acquisitions/divestments) of 3 to 5
percent.

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

Henkel expects to increase earnings per preferred share
adjusted for restructuring charges and one-time gains and charges
("adjusted EPS") at the lower end of 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. We also anticipate
that the currently weak US dollar will recover in the course of
the second half of the year.

Not included in this forecast are any influences arising from the
sale in part or in whole of our stake in Ecolab, the purchase
price allocation for the acquired National Starch businesses that
still has to be carried out, and the fiscal effects relating to a
possible Ecolab transaction, the acquisition and the restructuring
charges. 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 second 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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