By Anthony Shevlin
Henkel AG & Co. KGaA (HEN.XE) said Tuesday that earnings in the second quarter fell due to a decline in key industries such as automotive, and cut its growth outlook for the full year.
The maker of Dial soap and Purex laundry detergent said earnings before interest and taxes came to 756 million euros ($847.1 million) compared with EUR814 million the year prior.
Sales for the period were EUR5.12 billion, down from EUR5.14 billion last year.
The company's EBIT margin was 14.8%, it said.
Henkel cut its full-year organic growth expectations and now sees growth at between 0% and 2%. The company previously forecast organic growth between 2% and 4%.
Henkel cut its growth outlook as it doesn't expect industrial demand to increase in the second half, it said. Furthermore, the company said its beauty-care business is set to develop below initial expectations.
Henkel continues to expect an adjusted return on sales in the range of 16% to 17%
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