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MOSCOW (MRC) -- Henkel has provided a
business update for the third quarter and says that, based on preliminary
figures, its adhesive technologies business unit achieved positive organic sales
growth of 1.3% in the quarter, said Chemweek.
All
business areas in adhesive technologies showed a recovery in demand compared
with the second quarter, the company says. Henkel notes that in the first nine
months of 2020, adhesive technologies recorded a 6.8% decline in organic
sales.
“Despite the continued challenging economic environment as a
result of the corona crisis, based on preliminary sales figures, Henkel
delivered a strong organic sales growth of plus 3.9% in the third quarter. Sales
reached around EUR5.0 billion [USD5.9 billion] and all business units
contributed to the good performance,” says Carsten Knobel, CEO at
Henkel.
Based on the preliminary business performance in the first nine
months, Henkel has provided new guidance for 2020, following the withdrawal of
its full-year guidance in April due to the high level of uncertainty caused by
the COVID-19 pandemic.
For the adhesive technologies business, which is
significantly impacted by a sharp decline in general industrial demand such as
in the automotive industry, Henkel anticipates organic sales growth in the range
of 5.5-6.5%, and an EBIT margin in the range of 14.5-15.0%. Henkel will publish
its third-quarter results on 10 November.
As MRC informed earlier,
Henkel AG & Co. KGaA (Dusseldorf, Germany) announced that Henkel Adhesives
Technologies has officially inaugurated its new production facility in Kurkumbh,
India.
Henkel are also partnering with
Borealis and plastics solutions company Borouge to develop flexible
packaging solutions for detergents containing both virgin polyethylene (PE) and
high amounts of post-consumer recyclate (PCR) in efforts to increase
sustainability.
Ethylene and propylene are feedstocks for producing polyethylene (PE) and
polypropylene (PP).
According to MRC's ScanPlast report,
Russia's estimated PE consumption totalled 1,496,500 tonnes in the first eight
months of 2020, up by 5% year on year. Shipments of all ethylene polymers
increased, except for linear low desnity polyethylene (LLDPE). At the same time,
PP shipments to the Russian market reached 767,2900 tonnes in the eight months
of 2020 (calculated using the formula - production minus exports plus imports -
and not counting producers' inventories as of 1 January, 2020). Supply increased
exclusively of PP random copolymer. |
