U.S. News

Henkel Posts 2006 Profit Up 13%

null|By AP

Henkel, the German consumer goods maker, on Tuesday said its 2006 profit rose 13% and proposed a three-for-one stock split.

The Duesseldorf-based maker of laundry detergent and shampoo, including Dial soap, earned 221 million euros ($290.84 million) in the fourth quarter compared with 202 million euros in the same period a year earlier. Sales rose 3.7% to 3.2 billion euros ($4.21 billion).

In the full year, the company earned 871 million euros ($1.1 billion) in 2006 compared with 770 million euros in 2005 as sales rose 6.4% to 12.74 billion euros ($16.77 billion).

The company said its share split would help raise its base capital to about 438 million euros ($576.4 million) and said no new shares would be issued, if the plan is approved split at the company's annual general meeting in April.

Henkel's annual report, published Tuesday, showed the company aims to expand all its four business units organically at a rate greater than the broader market. The company said it expects the global cosmetics market to increase by 2% and the market for detergents to increase between 2% and 3%. The market for adhesives is forecast to grow by 3%.

Overall sales are expected to rise between 3% and 4%.

Shares of Henkel rose 1.9% to 115.43 euros ($151.91) in Frankfurt trading.