EANS-News: Henkel AG & Co. KGaA /

Henkel reports substantial increase in sales and earnings in the
second quarter

--------------------------------------------------------------------------------
Corporate news transmitted by euro adhoc. The issuer/originator is solely
responsible for the content of this announcement.
--------------------------------------------------------------------------------

Annual Reports/annual result/Company Information/Earnings/Financial
Figures/Balance Sheet/Further Education/New Products/quarterly report

Subtitle: Henkel reports substantial increase in sales and earnings
in the second quarter

Düsseldorf (euro adhoc) - Düsseldorf, August 4, 2010

Sales and profits forecast for 2010 further upgraded

Henkel reports substantial increase in sales and earnings in the
second quarter

• Sales increase by 11.6 percent to 3,890 million euros
• Organic sales growth of 6.8 percent
• Share of sales of growth regions: plus 3 percentage points to 41 percent
• Adjusted operating profit: plus 54.5 percent to 476 million euros
• Adjusted EBIT margin: plus 3.5 percentage points to 12.2 percent
• Adjusted earnings per preferred share (EPS): plus 97.1 percent to 0.73
euros

"Following a very good start to fiscal 2010, we have now seen our
operations continue their successful development in the second
quarter, with our Adhesive Technologies and Cosmetics/Toiletries
business sectors making a particularly strong contribution. In
addition, the share of sales generated within the growth
regions reached 41 percent," said Kasper Rorsted, Chairman of the
Henkel Management Board, adding: "Our excellent performance in the
second quarter was once again due to our strong brands and
successful innovations. However, our continuing focus on
implementing more efficient structures, stricter cost
management, and the progress made in the pursuit of our strategic
priorities have also contributed substantially to the very good
results achieved. As a consequence we are now looking forward to
an improvement of more than 25 percent in earnings versus 2009."
In the second quarter of 2010, Henkel generated sales of 3,890
million euros. In a stabilizing market environment, this was an
increase of 11.6 percent compared to the figure for the prior-year
quarter. After adjusting for foreign exchange, sales improved by
6.0 percent. Organically, i.e. after adjusting for foreign exchange
and acquisitions/divestments, a further significant increase in
sales of 6.8 percent was achieved compared to the prior-year
quarter. This follows on from strong sales growth in the first
quarter of 2010. This positive development was driven by the
Adhesive Technologies and Cosmetics/Toiletries business sectors.
With a 13.6 percent increase, Adhesive Technologies again
achieved a double-digit organic growth rate. Cosmetics/Toiletries
once more substantially outperformed market growth with an organic
improvement of 5.0 percent. The Laundry & Home Care business
sector achieved positive volume growth although, due to
intensified promotional and price competition, recorded a decline in
organic sales of minus 1.5 percent.

Due primarily to the substantial improvement posted by Adhesive
Technologies, operating profit (EBIT) increased by 51.2 percent, from
279 million euros to 421 million euros. After allowing for
one-time charges (9 million euros), one- time gains (1 million
euros) and restructuring charges (47 million euros), adjusted
operating profit improved by 54.5 percent, from 308 million euros
to 476 million euros.

Return on sales (EBIT margin) increased significantly, from 8.0
percent to 10.8 percent, and adjusted return on sales even rose
from 8.7 percent to 12.2 percent.

The company´s financial result improved from -60 million euros to
-35 million euros. This is attributable to the lower net debt
figure, accompanied by an improvement in results from currency
hedging transactions. The tax rate was 27.5 percent.

Due to the increased EBIT, net income for the quarter rose by
86.7 percent, from 150 million euros to 280 million euros. After
deducting non-controlling interests totaling 7 million euros, net
income for the quarter came in at 273 million euros (prior-year
quarter: 143 million euros). Adjusted quarterly net income after
non-controlling interests amounted to 315 million euros compared
to 162 million euros in the prior-year quarter. Earnings per
preferred share (EPS) increased substantially, from 0.33 euros to
0.63 euros. Adjusted earnings per preferred share almost doubled,
reaching 0.73 euros versus 0.37 in the prior-year quarter.

Good progress was also made in the management of net working
capital: compared to the prior-year period, the ratio of net working
capital to sales improved by 3.0 percentage points to 8.7 percent.

Business sector performance

In the second quarter of 2010, the Laundry & Home Care
business sector increased sales by 2.7 percent to 1,086 million
euros. The foreign exchange impact amounted to a positive 4.6
percent. However, intense promotional and price competition led
to a fall in prices of 4.7 percent. Hence, despite a
substantial increase in volume of 3.2 percent, organic sales
declined by 1.5 percent compared to the prior-year quarter. The
highest rate of organic growth was achieved in the region of
Africa/Middle East. In North America, sales decreased due to
strong competitive pressures. However, in all the other
regions, sales were largely held at the level of the previous
year, despite declining markets in most cases, enabling Henkel to
either defend or expand its market shares. Operating profit rose
markedly, up 15.4 percent to 137 million euros, the increase in
material prices being successfully offset through further cost
savings in procurement and production. At 12.6 percent, return on
sales improved by 1.4 percentage points versus the prior-year.
Sales of the Laundry Care business benefited from a number of
successful innovations. Eastern Europe, for example, saw the launch
of Persil Gold with "Fresh Pearls" from Silan, which combines
outstanding cleaning power with a freshening fragrance. The
innovative stain removal product Transpirex was introduced into the
Spanish market under the Neutrex brand. The Home Care
business also launched a number of high-performance innovations onto
the market in the period under review. In Eastern Europe, a new
hand-dishwashing product was introduced under the Pur brand, which
- with its especially viscous and extra-strong Pur Max gel formula
- is able to remove even the most stubborn dirt with small
dosages. The new WC product Bref Power Active was launched onto the
markets of Western and Eastern Europe offering four active
components: a cleaning foam, an anti-limescale formulation, a
special dirt protection formula which prevents re- contamination, and
an extra-fresh fragrance.

Despite high prior-year figures, the Cosmetics/Toiletries
business sector posted strong organic sales growth of 5.0 percent to
865 million euros in the second quarter of 2010, significantly
outperforming the relevant markets and continuing the highly
successful trend of recent quarters. This growth was primarily
due to an ongoing innovation offensive. Record market shares
were again registered in Europe. The growth regions of Asia
(excluding Japan), Africa/Middle East, Latin America and Eastern
Europe made a particularly strong contribution to this continuing
good performance with, again, a double-digit improvement. While
a slight decline was observed in North America, a
substantial increase in sales was once more achieved in Western
Europe. Worthy of particular mention is the robust improvement in
sales achieved in Germany. With advertising investment
significantly higher, operating profit (EBIT) rose in the quarter
under review by 12.4 percent to 112 million euros. Return on
sales improved by 0.3 percentage points to 13.0 percent, a new
high for a second quarter. The Hair Cosmetics segment continued
to perform very well, expanding its market shares and posting
record results in all categories. The Hair Care category benefited
from the launch of the Schauma line Intensiv Anti- Schuppen
(Intensive Anti-Dandruff), and the introduction of the Syoss
Moisture series. In the Colorants business, the focus was on the
further successful roll- out of the Syoss Color line and the
introduction of Palette Intensive Color Creme Gelée Royale and
Diadem Gelée Royale. In the Styling category, new product
launches from Got2b and Taft Power & Touch contributed to
the gratifying performance achieved. In addition to a successful
launch of new Fa 3D Protect and the relaunch of Dial4Men, the Body
Care segment also benefited from further significant growth
momentum generated by the introduction in Western and Eastern
Europe of the innovative, high-performance men´s deodorant brand
Right Guard. In the Skin Care segment, the focus was on the
relaunch of the Diadermine line Reactivance for mature skin. In the
Oral Care segment, the focus was on the relaunch of the successful
series Theramed 2in1. The Hair Salon segment again generated good
sales growth in the second quarter compared to prior-year. As a
result, the business was able to gain further market shares in a
persistently difficult operating environment. The successful
relaunches of the styling brand OSiS and the cross-segment brand
Essensity were among the main activities pursued.

The Adhesive Technologies business sector saw the
extraordinarily positive developments of the first quarter continue
through the second quarter. With an increase of 19.5 percent to
1,890 million euros, sales were significantly above the level of the
prior-year quarter. Organically, sales rose by 13.6 percent, this
growth being generated in particular by volume increases that were
able to more than offset the slight reduction in price levels. All
Henkel´s businesses and regions contributed to this positive
development. The growth regions of Asia (excluding Japan),
Africa/Middle East, Latin America and Eastern Europe continued to
exhibit above-average improvements in sales. Yet the mature
markets of Western Europe and North America also posted highly
satisfactory double-digit growth. Despite material price increases
operating profit and return on sales developed well, reflecting
both an increase in sales volume and an improved cost structure.
Operating profit more than doubled compared to the prior-year
quarter, coming in at 222 million euros. Adjusted EBIT amounted to
255 million euros. Return on sales also improved to 11.8 percent, a
substantial 5.8 percentage points higher than prior-year. Adjusted
return on sales actually increased by 6.3 percentage points to a new
high of 13.5 percent. The segment Adhesives for Craftsmen,
Consumers and Building continued to develop well in all regions.
Both the business with craftsmen and consumers and also activities
involving the construction industry contributed to the growth
achieved. Compared to the market-related, rather weak prior-year
quarterly figures posted by the Transport and Metal business, this
quarter the segment achieved the strongest rate of sales growth
registered within the Adhesive Technologies business sector. All
regions contributed to this improvement, some of them posting
significant double-digit sales growth. In the General Industry
business too, sales were substantially above the level of the
prior-year quarter. In particular, the regions of Asia-Pacific,
North America and Latin America posted above-average results;
however, the Europe/Africa/Middle East region also turned in
double-digit growth rates. Likewise the Packaging, Consumer Goods
and Construction Adhesives business saw growth compared to the
prior-year quarter, with activities involving laminating
adhesives under the Liofol brand performing especially well.
The Electronics segment also continued to show considerable
improvement, with the business generating further substantial
increases compared to the prior-year quarter, primarily in
Western Europe, North America and Latin America. This year, at the
world´s most important trade show for the PCB and electronic
components industry in Las Vegas, Henkel´s innovative strength
within this sector was recognized with two awards for new product
developments under the Loctite and Hysol brands.

Regional performance

In the Europe/Africa/Middle East region, sales improved
organically by 6.3 percent compared to the second quarter of 2009,
coming in at 2,307 million euros, with all three business sectors
contributing. Africa/Middle East once again saw double-digit
organic growth, while developments in Eastern Europe continued
in the upper single-digit range. Western Europe including
Germany posted an organic growth rate in the mid single-digits, as it
did in the first quarter of 2010. At 714 million euros, sales of
the North America region grew organically by 1.9 percent compared
to the prior-year quarter. Sales of the Adhesive Technologies
business sector developed particularly well, while sales in the
Laundry & Home Care and Cosmetics/Toiletries business sectors
declined. The successful development of the Latin America region
continued unabated. Here organic sales increased by 12.3 percent to
259 million euros, with all business sectors contributing. Sales
continued to recover in the Asia-Pacific region, with organic
growth of 16.0 percent compared to prior-year generating a total
of 560 million euros. Encouraging sales increases were
achieved by both

Adhesive Technologies and Cosmetics/Toiletries. In the growth regions of
Eastern Europe, Africa/Middle East, Latin America and Asia (excluding Japan),
sales rose by 21.4 percent to 1,598 million euros. Compared to the prior-year
quarter, organic growth amounted to 11.6 percent, keeping it in the double-
digit range. All the business sectors contributed to this improvement, albeit
with the biggest contributions coming from Adhesive Technologies and
Cosmetics/Toiletries. The share of sales of the growth regions increased from
38 to 41 percent.

Sales and profits forecast 2010

Looking at the economic forecasts for the current year, Henkel anticipates that
the world economy will grow by around 3.5 percent.

Henkel is confident of again outperforming its relevant markets in
terms of organic sales growth. A number of measures have been
introduced and implemented on the operational side, from which
Henkel expects further positive momentum to ensue. For example, it
anticipates further contributions to profit arising both from the
synergies created through the integration of the National
Starch businesses, backed up by a strictly disciplined cost
management approach. These factors and the expected increase in
sales will positively influence the development of adjusted
operating profit (EBIT) and adjusted earnings per preferred
share (EPS). Henkel expects both metrics to undergo a
substantial improvement of more than 25 percent compared to the
levels of 2009.

This document 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 and
similar formulations. 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 forward-looking
statements.

Contact
Lars Witteck Wulf Klüppelholz

Tel. +49 211 797 - 2606 Tel. +49 211 797 - 1875
Fax +49 211 798 - 4040 Fax +49 211 798 - 4040

Henkel AG & Co. KGaA

Photo material available for downloading at http://www.henkel.com/press. For

more detailed facts and figures relating to the second quarter of
2010, please go to: http://www.henkel.com/ir.

press@henkel.com

-----------------------

[pic]

end of announcement euro adhoc
--------------------------------------------------------------------------------

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
Index: DAX, CDAX, HDAX, Prime All Share
Börsen: Frankfurt / regulated dealing/prime standard
Hamburg / free trade
Stuttgart / free trade
Düsseldorf / free trade
Hannover / free trade
München / free trade
Berlin / regulated dealing