Persil maker lowers growth target

The company has experienced weak growth at home in Germany

German detergents-to-glue group Henkel saw a third-quarter net profits rise of 11.3%, to 118m euros (£82.5m, $139.4m).

At 2.371bn euros, sales were slightly better than some expected, but still just below last year's level.

The Persil-maker said it was revising downwards its full-year sales forecast, predicting growth of 3-4%, compared to the previous 4%.

"Meeting the four percent growth target will be an enormous challenge," chief finance officer Lothar Steinebach said.

'No sustained recovery'

Weak growth in key markets such as Germany continued to take its toll, and a strong euro dented the value of overseas revenues.

The heaviest impact was felt in North America, where sales in local currencies were flat, but down 10.5 % once converted into euros.

Home sales were also flat.

"Despite slight improvements in certain early indicators, there has still not been any sustained recovery in the markets of relevance for us," said chairman Ulrich Lehner.

In October, Henkel said it would use the proceeds from the sale of its stake in hair care group Wella to help offset the costs of extending its Strong for the Future restructuring scheme.