to the prior-year quarter. This was achieved through increases in
both volume and price,” the company said.
“Adjusted operating profit (EBIT) remained at the level of
the prior-year quarter. Adjusted return on sales (EBIT) grew very
strongly, by 0.6 percentage points to 17. 5 percent. Increasing
prices for direct materials adversely impacted gross margin; this
was partially offset by the strict implementation of our measures
to optimize the portfolio and improve production and supply
chain efficiency.”
Overall, for the first half of the year, Henkel’s organic sales in
the Adhesive Technologies business unit grew between January
and June 2014 by 3. 9 percent, outpacing the global economy.
“In our report for fiscal 2013, we published guidance for
fiscal 2014 indicating that we expect to achieve organic sales
growth of between 3 and 5 percent. In line with our 2016 strategy, we furthermore expect a slight increase in the share of sales
from our emerging markets,” said Lisa Kretzberg, spokeswoman
for Henkel Adhesive Technologies.
“For the adjusted return on sales (EBIT), we forecasted an increase to around 15. 5 percent, and for adjusted earnings per preferred share, we anticipate a rise in the high single-digits (2013:
€ 4.07). We confirm our guidance for fiscal 2014,” she added.
Henkel said it achieved its largest increase in sales in the
General Industry business. The Vehicle Repair and Maintenance
and General Manufacturing steering units significantly contributed with double-digit growth. The Adhesives for Consumers,
Craftsmen and Building business also posted positive sales
growth. Despite the difficult political situation in parts of
Eastern Europe, sales to the building industry were solid overall, Kretzberg said.
Increasing Costs, Regulations
Despite tremendous gains in both the global and local econo-
mies, the adhesives and sealants market is still largely at the
mercy of raw material costs, which seem to be climbing ever
higher, and government regulations, which are plentiful in an
international market.
Bankwitz said that Sika has dealt with rising raw material
and energy costs by simply going back to the drawing board.
“Although the cost/performance ratio of adhesives and
sealants has always been a key aspect for Sika,” he said,
“raw material scarcity and higher prices triggered new
thinking and innovations in product development and man-
ufacturing processes.”
He added that VOC and environmental regulations are ma-
jor drivers for product adaptations. “Sika recognizes stronger
regulations as an opportunity and always tries to stay ahead of
the market or even driving it by introducing new adhesives and
sealants that have, for example, a much lower monomer content
than previous generations of products and before any regula-
tions are imposed.”
Kretzberg said that Henkel has adapted a multi-pronged approach to offsetting the increase in raw material costs. “Through
selective price increases, continued strict cost discipline and efficiency improvements in production and supply chain, we were
able to largely offset the effects on gross margin of substantially
higher promotion activities and the slightly higher prices of direct materials.”
New Products and Areas of Focus
In highly competitive markets such as automotive and construction, suppliers are constantly asking themselves what they can
do to differentiate themselves from their competitors. Bankwitz
said that Sika has introduced several new products to the market in order to do just that.
Its new series of construction sealants, SikaHyflex, is designed to meet the increased requirements high performance
sealants have to fulfill today.
“They adhere to all kinds of substrates and have an extremely high movement capability of up to +100/-50% in order to
Henkel Acquires The Bergquist Company
Expanding adhesive products through Asia Pacific
Henkel, a global provider of adhesive, sealants and functional coatings, signed an agreement last month to acquire The Bergquist
Company, a privately-held and leading global supplier of thermal-management products for electronics applications.
“With this acquisition – which is in line with our global strategy to invest in complementary leading technologies – we are strength-
ening our position as a global market and technology leader,” said Jan-Dirk Auris, Executive Vice President Adhesive Technologies.
“Bergquist’s track record in developing unique thermal-management solutions fits with our commitment to provide best-in-class
customized solutions.”
According to Henkel, Bergquist’s strong business presence in the Asia Pacific region will further advance its production and R&D
capabilities and help deliver greater sustainable products to the region.
Chanhassen, Minneapolis, USA-based Bergquist has five production sites in the US and one in China. In fiscal 2013, it generated
sales of around 130 million euros. The company has about 1,000 employees.
Last year, Henkel Adhesive Technologies increased its APAC presence further by opening the world’s largest adhesives plant:
Dragon Plant. In the second quarter of fiscal 2014, the Henkel Adhesive Technologies business unit generated a 17. 5 percent return
on sales, with Asia Pacific markets posting the highest growth.
