Henkel says it has decided the forecast for fiscal 2020 published in the Annual Report, 2019 will no longer be upheld as manufacturing worldwide deals with the coronavirus pandemic.

The supplier maintains it is responding to the crisis triggered by the Covid-19 pandemic with specific measures. Nevertheless, it is currently not possible to predict with sufficient reliability during what period and to what extent Henkel will face further impacts in fiscal 2020 and to what extent these can be offset by countermeasures.

As soon as it is possible to make a sufficiently reliable evaluation of the future business performance in 2020, Henkel will publish a corresponding forecast.

“The world is going through a very challenging period,” said Henkel CEO, Carsten Knobel. “First and foremost, people and communities in almost every country are affected by the spread of the coronavirus. But also businesses and economies worldwide are facing major challenges.

“In this difficult situation, the health and safety of our employees, customers and business partners have highest priority for us. We have taken early action and measures to protect them while ensuring business continuity under these unprecedented conditions.

“As the Covid-19 pandemic has worldwide reach and its further development is impossible to predict, we currently cannot make reliable projections for our business performance in 2020.

“But with our committed global team, their resilience and capabilities, as well as our strong balance sheet we are confident to master the crisis in the best way possible and to emerge stronger from this crisis.”

Development of Henkel in the first quarter of 2020 has already been impacted by the effects of the pandemic. Based on preliminary results, Henkel expects overall organic sales growth for the Group of -0.9% in the first quarter of 2020.

For the Adhesive Technologies business unit, Henkel expects organic sales growth of -4.1% for the first quarter. In the sector, demand declined, particularly in the automotive industry.