Henkel: shares plunge after warning of 'slow start' to 2018

(CercleFinance.com) - Henkel shares have plunged in early-morning trading today, after the German consumer goods group warned of a "slow start" to its first quarter while confirming its full-year outlook for 2018.


Shares of the Düsseldorf-based personal care and cosmetics company were down 5.4% at 104.5 euros after the opening bell in Frankfurt. They have now fallen by almost 14% over the past year.

Henkel said this morning that delivery difficulties in North America have adversely affected its consumer goods businesses, with problems in the supply chain due to a modification of its transportation and logistics systems.

"This only concerns Laundry & Home Care and the retail activity of Beauty while Adhesives and Beauty Professional are not affected," analysts at Bryan Garnier said.

Despite this slow start to the year, Henkel confirmed its outlook for full-year 2018.

Organic growth should still be in the range of 2 to 4 percent, while Henkel expects operating profit (Ebit) to increase by over 17.5%.

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