In This Article:
* Q2 sales down 0.4% to 5.121 bln euros vs consensus for 5.25 bln
* Q2 EPS 1.43 euros vs consensus for 1.45 euros
* FY organic sales growth now seen at 0-2% vs previous 2-4%
* Industrial demand no longer seen recovering in H2
* Shares down 6.9% (Adds CEO comments)
BERLIN, Aug 13 (Reuters) - Persil maker Henkel cut its full-year outlook on Tuesday after posting its first fall in sales in a decade as the popularity of its beauty products waned and weaker industrial production hit its adhesives business.
Its shares fell 6.9 percent to the bottom of the STOXX600 index of top European companies as the German consumer-goods group experienced another disappointing quarter under Chief Executive Hans van Bylen.
The maker of Schwarzkopf shampoo, Dial soap and Loctite glue has underperformed rivals such as Procter & Gamble Co (P&G) and Unilever in recent years.
It warned in January that earnings would fall as it ramps up marketing to try to revive growth.
In the second quarter, sales fell by a like-for-like 0.4% to 5.121 billion euros ($5.73 billion), the weakest since the third quarter of 2009. Earnings per share dropped 9.5% to 1.43 euros. Both figures were below average analyst forecasts.
"Could it get any worse? It just did," said Bernstein analyst Andrew Wood. "All businesses missed expectations and saw medium-term or long-term lows."
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, is seen as unlikely to take such a radical step.
Van Bylen declined to answer directly when asked if he had the full support of the Henkel family.
"Henkel is not in a crisis," he told journalists. "We have a strategy that is working."
Asked whether Henkel should consider selling the beauty business, he said: "We see good chances with beauty care to come back to profitable growth."
MARKETING BOOST YET TO BEAR FRUIT
Second-quarter beauty care sales fell 2.4%, sagging in western Europe and North America while stock issues hit China, although the professional haircare business kept growing strongly.
Earlier this month, German rival Beiersdorf reported slowing sales growth for its Nivea skin care brand in the second quarter, but confirmed its outlook for full-year group sales growth of 3-5%.
Van Bylen, a Belgian who previously led Henkel's beauty care business, took over as CEO in 2016, replacing Kasper Rorsted, who moved to become chief executive of sportswear maker Adidas.