Better-than-expected revenues and earnings for the first quarter have prompted German household products giant Henkel – owner of brands such as Loctite glue and (in Germany only) Persil washing powder – to adhere to its ambitious full-year targets.

Excluding divestments, revenues for the three-month period rose 3.9% year-on-year to €2.4 billion ($2.2bn; £1.5bn), while EBIT (earnings before interest and taxes) increased 3.1% to €162 million. Defying the slowdown, Henkel restated its forecast of full-year revenues of over €10bn and a 10% climb in operating profits.

However, net profits sank 17% in the quarter to 93m and are expected to fall in 2002 as a whole following a series of divestments.

Henkel plans to boost growth with acquisitions but warned it would not pay over-the-top prices – a veiled reference to its reported interest in Beiersdorf.

Data sourced from: Handelsblatt (Germany); additional content by WARC staff