BERLIN (Reuters) - Persil maker Henkel (DE:HNKG_p) reported another quarter of decline on Thursday as its adhesives business was hit by a slowdown in the automotive sector and its beauty unit battled fierce competition in western Europe and destocking in China.
Last month, Henkel announced that Chief Financial Officer Carsten Knobel would take over as chief executive from Hans Van Bylen in January after a string of poor results.
Third-quarter sales fell by a like-for-like 0.3% to 5.077 billion euros (£4.370 billion) versus average analyst forecasts for 5.1 billion euros. Adjusted earnings per preferred share dropped 9.5% to 1.43 euros, versus consensus for 1.45 euros.
Henkel said its adhesives unit, which accounts for half its sales, saw organic sales fall 2.4%, its beauty unit, which makes Schwarzkopf shampoo and Dial soap, reported a fall of 2.2%, while laundry and home care reported a rise of 4%.
German rival Beiersdorf (DE:BEIG) also reported a fall in sales of adhesives to the auto industry in the third quarter but new products boosted its skin care business which held up better than expected.
Analysts have suggested Henkel should consider selling or spinning off its struggling beauty business but the founding family, which owns around 60 percent of the company's voting shares (DE:HNKG), is seen as unlikely to take such a radical step.
Henkel reiterated its 2019 guidance for group organic sales growth of between zero and 2% and for adjusted earnings per preferred share (EPS) to fall by a mid- to high single-digit percentage at constant exchange rates.