German consumer goods company Henkel said on Monday that the first quarter of the year was off to a slow start because of delivery difficulties in North America.
The maker of Persil detergent and Loctite adhesives said the problems in its supply chain were due to changes in transportation and logistics.
"The causes of our delivery difficulties in the North American consumer goods businesses have been identified and are currently being solved," said Henkel chief executive Hans Van Bylen. "We expect to return to usual service levels in the course of the second quarter."
Henkel, which did not give details on the supply disruptions, said that organic sales growth for its divisions for laundry and home care, as well as its beauty care, would be negative in the first quarter. Meanwhile, the adhesives group, which generates about half of the companies sales, “continues to how strong development”.
“Overall, organic sales growth for the Group in the first quarter of 2018 is expected to be slightly positive,” the company said.
Henkel’s shares were indicated 3 per cent lower in premarket trade at 0723 GMT.
Henkel has been grappling with a price war in the United States, with Procter & Gamble and competition in its beauty business, and it has seen laundry sales growth slip.
Despite the disruptions, Henkel said that it confirms its outlook for 2018, with organic sales growth in the range of 2 to 4 per cent.
It is due to publish first-quarter results on May 9th. – Reuters
