Information for Shareholders on Business Performance of Henkel January through March 2001

Successful Start in a Difficult Environment



* Positive sales growth in all businesses

* Crisis in Turkey adversely affects quarterly earnings

* Very positive development at Cognis



Apr 30, 2001, 01:00 ET from Henkel Group

    DUSSELDORF, Germany, April 30 /PRNewswire/ --
 
     Sales and Profits
     From January through March 2001, the Henkel Group realized worldwide sales
 of EUR 3.3 billion.  This represents an 8.7 percent increase over the previous
 year.  Organic growth accounted for 3.2 percent, foreign exchange factors
 contributed 1.0 percentage points to the rise in sales, and a net gain from
 acquisitions and divestments added 4.5 percent.
     In Europe including Africa and the Middle East sales increased by
 6 percent to EUR 2,278 million.  Sales in North America rose by 9.4 percent,
 and in Latin America by 31.2 percent.  An improvement in sales of 20.4 percent
 was achieved in the Asia/Pacific region.
     Operating profit (EBIT) increased by 10.1 percent over the previous year
 figure to EUR 228 million, despite a loss of EUR 15 million from the
 devaluation of the Turkish lira.  The return on capital employed (ROCE) was
 13.2 percent.
     Financial items were depressed by the restructuring costs of
 EUR 35 million of our associated company Clorox, which were however offset by
 income from the sale of company-owned apartments.  The expected total charge
 for the year through Clorox has thus already been incorporated in the first
 quarter.
     Quarterly net earnings amounted to EUR 112 million.  This represents an
 increase over the same period last year of 1.8 percent.
     The cash flow of the Henkel Group improved during the first three months
 of this year by 6.5 percent to EUR 293 million.
 
     Major Events
     In February 2001, the Henkel Group acquired the metal treatment business
 of Atofina, the chemicals division of TotalFinaElf, Paris, France.  This
 division produces and markets products for metal forming and surface
 treatment.  The sales of around EUR 110 million are mainly realized in North
 America and Europe.
     In March 2001, the Henkel Group also acquired on behalf of the Surface
 Technologies division the automotive business of Vagnone & Boeri, Turin,
 Italy.  Specializing in the manufacture of adhesives and sealants for
 automobile producers and their components suppliers, this business has annual
 sales of around EUR 12 million.
 
     Development of Business Sectors
     In the first quarter of 2001, the Adhesives business sector increased
 sales by 13.2 percent to EUR 786 million.  At EUR 63 million, operating profit
 fell short of the figure for the same period last year.  The main reason for
 this lay in higher prices for important raw and packaging materials, which so
 far could not be passed on to the market.  The economic crisis in Turkey
 additionally adversely affected profits.
     Owing to difficulties involving the construction industry and craftsmen,
 the worldwide sales figure for Consumer and Craftsmen Adhesives during the
 first quarter was slightly up on the same period of the previous year.
     Numerous innovations were launched onto the market in the course of the
 first quarter of 2001: Pattex Powerknete (epoxy putties) and Ceresit
 Fliesenkleber (tile adhesive) with improved properties were introduced in
 Germany.
     Specialty plastic adhesives and an innovative brush-applied superglue were
 internationally launched under the Loctite brandname.
     Engineering Adhesives increased sales by 34 percent in the first
 three months of the year, due mainly to the acquisition of the specialty
 polymers business of Dexter.  The established business performed very well in
 Europe, while in North America and Japan the weakness of the industrial sector
 had an adverse effect, particularly on business in the automotive and
 electronic industries.
     Industrial and packaging adhesives continued their upward growth with an
 increase in sales of 10 percent.  Overproportionate sales increases were
 recorded both in Asia/Pacific and in North and South America.  The main
 contributors are the strategic business units paper processing and laminating
 adhesives.  The continuing high raw material prices are being partly offset by
 market price adjustments.
 
     The Cosmetics/Toiletries business sector succeeded in maintaining its high
 performance level of 2000 through the first quarter of 2001.  Sales rose by
 9.1 percent to EUR 497 million and operating profit increased by 3.8 percent
 to EUR 27 million.
     Compared to the same period last year, the brand-name products business
 increased sales by 9 percent.  The main regions contributing to this success
 were Central Europe, Asia/Pacific and North and Latin America.  Business in
 Russia developed particularly well with a sales growth of around 90 percent.
 Business performance in Turkey and Israel was however below target.
     Sales in Hair Cosmetics rose by 19 percent over the previous year.  The
 main contributors were hair colorants, which showed a very positive organic
 growth.  The performance of the Brillance and Palette brands was also
 excellent.  The takeover of Yamahatsu in Japan likewise contributed to the
 success of the hair colorants business.
     Sales in the body care business rose by 4 percent, due especially to the
 success of the Fa brand.  At the beginning of the year the new "Fa Wellness"
 series was launched in key European markets.
     The skin care products Diadermine and Aok performed successfully.  The
 Diadermine Force-Retinol Pflegemaske (facial care mask) and the Aqua-Force
 high-care moisturizer system contributed to the further growth.
     The hair salon business continued to develop well.  Sales grew by
 9 percent during the first quarter of 2001.  The first three months of this
 year saw the launch of several new products such as Igora Personality, Osis
 Carving and Bonacure Sun.
 
     The Laundry & Home Care business sector increased sales by 12.2 percent to
 EUR 759 million.  Operating profit decreased by 15.2 percent to
 EUR 45 million.  Earnings for the first quarter have been adversely affected
 by EUR 10 million due to negative effects from the crisis in Turkey.
     In Europe sales further increased despite virtual stagnation in the
 markets.  In the countries outside Europe, organic growth amounted to more
 than 20 percent, with new activities in Algeria and Mexico.
     Heavy-duty detergents increased sales by 25 percent.  Performance in
 Germany, Italy and the countries of Eastern Europe was especially positive.
 However, due to the economic crisis in Turkey, sales increased only slightly
 despite a gain in market shares.  Record growth rates were attained in the
 Near and Middle East where especially our premium brand Persil is performing
 very well.  Growth of detergent gels continues unabated.
     In China and India, sales volume was satisfactory, albeit with pressure on
 margins remaining high and a discernible shift toward lower-cost products.
 Sales of special detergents were 8 percent down on the figures of the strong
 first quarter of fiscal 2000.
     The sales decrease is attributable both to the economic crisis in Turkey
 and the lack of consumer acceptance of the Home Dry Cleaning category.  The
 Svit brand that was launched in the first quarter of the previous year, lacked
 follow-up purchasing.
     Household cleaner sales rose by 3 percent.  The international roll-outs of
 the newly patented 3in1 tabs technology for automatic dishwashers and the
 innovative WC foam cleaner started very successfully.
 
     The Industrial and Institutional Hygiene/Surface Technologies business
 sector achieved a sales increase of 2.7 percent to EUR 468 million.  Operating
 profit decreased by 16.7 percent to EUR 29 million.
     The drop in earnings is due to price increases for raw materials
 (Industrial and Institutional Hygiene) and the economic downturn in the North
 American automotive sector (Surface Technologies).
     Industrial and Institutional Hygiene (the Henkel-Ecolab joint venture)
 increased sales in the first quarter by 3 percent to EUR 220 million.  Price
 increases have either been implemented or are being prepared for most European
 countries in order to offset the rise in raw material and transport costs.
     An innovative dispenser system for hand and skin hygiene -- Zip 'n' Safe
 -- was launched onto the market.  Keen interest in water- and energy-saving
 systems is reviving demand in the Textile Hygiene unit.  Despite the sales
 losses resulting from the BSE problem in important national markets of the
 meat processing industry, the P3-Hygiene business has grown.  There was a
 decline in demand at the Institutional Hygiene and Floordress businesses,
 which rely more heavily on trade distribution channels.
     At EUR 248 million, sales at Surface Technologies were 2 percent up on
 previous year.  The businesses performed very successfully in Germany.  Good
 growth rates continued in Europe and Asia/Pacific, with the exception of
 Japan.  Sales in Latin America slightly improved.  Business in North America
 suffered from the continuing economic downturn.
     Except for North America, the Automotive business maintained its positive
 development.  Autobody reinforcing products (Terocore) contributed especially
 to the positive overall business development.  Our position in the Italian
 automotive industry has been significantly strengthened by the acquisition of
 Vagnone & Boeri.
     The Industry (non-automotive) business unit maintained performance at the
 level of the previous year.  Worldwide market share gains were attained with
 organic coatings (Granocoat) for the steel and components industries.  The
 acquisition of the Atofina metal treatment and aerospace business in March
 opens up new markets and opportunities for further growth, especially in
 Europe and North America.
 
     During the first quarter of this year, the Chemical Products business
 sector operating as a legally independent company under the name Cognis
 increased sales by 5.7 percent to EUR 748 million.  All Cognis businesses
 contributed to this development.  Operating profit increased by 9.5 percent to
 EUR 56 million, although one-time restructuring costs to increase productivity
 in the US and losses arising from the devaluation of the Turkish lira
 adversely affected earnings by EUR 15 million.
     While the slowdown of the North American economy is noticeable in the US
 businesses, activities in Europe, Asia/Pacific and Latin America showed
 gratifying sales increases.  Earnings development was correspondingly
 positive.
 
     In spite of the economic difficulties prevailing in North America, the
 feedstock chemicals of the Oleochemicals division performed well overall.  The
 margins achieved remain satisfactory.
 
     In Care Chemicals, the strategic business units Nutrition & Health, Food
 Technology and Care Specialties performed well.  The strong sales growth
 encountered in the Skin Care segment deserves particular mention.  This
 encouraging development is also expected to continue through the second
 quarter.
 
     Organic Specialties also performed well, due in particular to an expansion
 in business with products for the coatings and inks industry (in Europe
 especially), the agrochemicals business and sales improvements in the leather
 technology business and in oilfield chemicals.
 
     Major Participations
     Ecolab Inc., St. Paul, Minnesota, USA, in which Henkel holds a
 participating interest of 25.4 percent, registered a growth in sales of
 10 percent to US$ 581 million in the first quarter of 2001.  Earnings in the
 period under review rose by 4 percent to US$ 44 million.
     The Clorox Company, Oakland, California, USA, in which Henkel has a
 26.6 percent participation, recorded sales amounting to US$ 2,873 million in
 the first nine months of fiscal 2000 / 2001.  Net earnings for the period
 under review amounted to US$ 241 million.
 
     Employees
     As of March 31, 2001, the number of employees at the Henkel Group was
 60,516.  The proportion of Henkel personnel working outside Germany was
 74 percent.
 
     Outlook
     Due to the economic slowdown in the USA, Henkel expects difficult business
 conditions for the industrial systems businesses Adhesives and Surface
 Technologies for the first half of 2001.  In the brand-name products business
 Henkel expects a comparatively better development of sales and earnings.
     Despite the unfavorable environment Henkel is confident to achieve a
 satisfactory increase in sales and earnings for the full year 2001.
 
     Employees
     (as of)      Dec. 31, 2000    March 31, 2001    Change
                                                      in %
     Germany          15,878          15,845         -0.2%
     Abroad           45,025          44,671         -0.8%
     Total            60,903          60,516         -0.6%
 
     On April 30, 2001 at 11.30 AM Eastern Standard Time (5.30 PM German Time)
 you can follow the live audio-webcast of the conference call on our website at
 www.ir.henkel.com .  An archive of the audio-webcast will also be available at
 www.ir.henkel.com beginning 2 hours after the completion of the live webcast.
 
 
                        Henkel Group Key Data by Region
                              January - March 2001
 
     in EUR million           Europe/    North     Latin    Asia/     Group
                              Africa/   America   America  Pacific
                            Middle East
 
     Sales Jan.-March 2001     2,278      557       163      278       3,276
     Sales Jan.-March 2000     2,148      510       124      231       3,013
     Change in percent           6.0      9.4      31.2     20.4         8.7
 
     EBIT Jan.-March 2001        212        9         6        1         228
     EBIT Jan.-March 2000        178       16         8        5         207
     Change in percent          19.1    -43.2     -19.8    -79.9        10.1
 
     Return on sales (EBIT)
      Jan.-March 2001
      in percent                 9.3      1.7       3.7      0.4         7.0
     Return on sales (EBIT)
      Jan.-March 2000
      in percent                 8.3      3.2       6.0      2.3         6.9
 
 
              Henkel Group Segment Information by Business Sectors
                           January through March 2001
 
     EUR million               Adhesives     Cosmetics/    Laundry &   Hygiene/
                                             Toiletries    Home Care    Surface
                                                                   Technologies
 
     Sales Jan.-March 2001         786           497          759           468
     Change in %                  13.2           9.1         12.2           2.7
     Proportion of
      Group sales in %            24.0          15.2         23.2          14.3
     Sales Jan.-March 2000         695           456          677           455
     EBITDA Jan.-March 2001        117            49           72            52
     EBITDA Jan.-March 2000        114            50           80            55
     Change in %                   2.6          -2.0        -10.0          -5.5
     Return on sales (EBITDA)
      Jan.-March 2001 in %        14.9           9.9          9.5          11.1
     Return on sales (EBITDA)
      Jan.-March 2000 in %        16.4          11.0         11.8          12.1
     EBITA Jan.-March 2001          90            38           48            33
     EBITA Jan.-March 2000          90            36           54            38
     Change in %                     0           5.6        -11.1         -13.2
     Return on sales (EBITA)
      Jan.-March 2001             11.5           7.6          6.3           7.1
     Return on sales (EBITA)
      Jan.-March 2000             12.9           7.9          8.0           8.4
     EBIT Jan.-March 2001           63            27           45            29
     EBIT Jan.-March 2000           68            26           53            34
     Change in %                  -7.4           3.8        -15.2         -16.7
     Return on sales (EBIT)
      Jan.-March 2001              8.1           5.5          5.9           6.1
     Return on sales (EBIT)
      Jan.-March 2000              9.8           5.7          7.8           7.5
     ROCE
     Jan.-March 2001 in %         11.2          12.5         18.7          15.5
     Capital employed
      Jan.-March 2001            3,174         1,226        1,015           840
     Capital expenditures
      (excl. financial assets)
      Jan.-March 2001               28             9           19            28
     Capital expenditures
      (excl. financial assets)
      Jan.-March 2000              106            18           16            20
     Research & development costs
      (R & D) Jan.-March 2001       24             9           17            12
     R & D as % of sales           3.1           1.8          2.2           2.6
     Research & development costs
      (R & D) Jan.-March 2000       19             8           16            12
     R & D as % of sales           2.7           1.8          2.4           2.6
 
 
     EUR million                      Chemical         Other*        Henkel
                                      Products                       Group
                                      (Cognis)
 
     Sales Jan.-March 2001               748              18         3,276
     Change in %                         5.7           -25.1           8.7
     Proportion of
      Group sales in %                  22.8             0.5         100.0
     Sales Jan.-March 2000               707              23         3,013
     EBITDA Jan.-March 2001               88              10           388
     EBITDA Jan.-March 2000               82             -25           356
     Change in %                         7.3              --           9.0
     Return on sales (EBITDA)
      Jan.-March 2001 in %              11.8              --          11.8
     Return on sales (EBITDA)
      Jan.-March 2000 in %              11.6              --          11.8
     EBITA Jan.-March 2001                57               7           273
     EBITA Jan.-March 2000                53             -25           246
     Change in %                         7.5              --          11.0
     Return on sales (EBITA)
      Jan.-March 2001                    7.6              --           8.3
     Return on sales (EBITA)
      Jan.-March 2000                    7.5               -           8.2
     EBIT Jan.-March 2001                 56               8           228
     EBIT Jan.-March 2000                 51             -25           207
     Change in %                         9.5               -          10.1
     Return on sales (EBIT)
      Jan.-March 2001                    7.5               -           7.0
     Return on sales (EBIT)
      Jan.-March 2000                    7.2               -           6.9
     ROCE
     Jan.-March 2001 in %               12.5               -          13.2
     Capital employed
      Jan.-March 2001                  1,837             152         8,244
     Capital expenditures
      (excl. financial assets)
      Jan.-March 2001                     24               3           111
     Capital expenditures
      (excl. financial assets)
      Jan.-March 2000                     49               1           210
     Research &
      development costs
      (R & D) Jan.-March 2001             19               7            88
     R & D as % of sales                 2.5              --           2.7
     Research &
      development costs
      (R & D) Jan.-March 2000             16               3            74
     R & D as % of sales                 2.3              --           2.5
 
 
                    Henkel Group Consolidated Balance Sheet
 
                               December 31, 2000           March 31, 2001
                             EUR mill.         %       EUR mill           %
 
     Intangible assets        2,602          22.9        2,615          22.1
     Property, plant
      and equipment           2,771          24.3        2,800          23.6
     Financial assets           922           8.1        1,049           8.9
     Fixed assets             6,295          55.3        6,464          54.6
     Inventories              1,711          15.0        1,781          15.0
     Trade accounts
      receivable              2,302          20.1        2,447          20.6
     Other receivables and
      miscellaneous assets      622           5.5          677           5.8
     Liquid funds/marketable
      securities                155           1.5          167           1.4
     Current assets           4,790          42.1        5,072          42.8
     Deferred tax assets        297           2.6          309           2.6
     Total assets            11,382         100.0       11,845         100.0
 
     Equity incl.
      minority interests      3,500          30.8        3,493          29.5
     Provisions for pensions
      and similar obligations 1,984          17.4        2,019          17.1
     Other Provisions         1,076           9.4        1,092           9.3
     Provisions for
      deferred tax liabilities  200           1.8          192           1.6
     Provisions               3,260          28.6        3,303          28.0
     Borrowings               2,963          26.0        3,070          25.8
     Trade accounts payable   1,117           9.8        1,165           9.8
     Other liabilities          542           4.8          814           6.9
     Liabilities              4,622          40.6        5,049          42.5
     Total equity and
      liabilities            11,382         100.0       11,845         100.0
 
 
                 Henkel Group Consolidated Statement of Income
 
                               Jan.-March 2000            Jan.-March 2001
                            EUR mill.          %       EUR mill           %
 
     Sales                    3,013         100.0        3,276         100.0
     Cost of sales           -1,628         -54.0       -1,803         -55.0
     Gross profit             1,385          46.0        1,473          45.0
     Marketing, selling and
      distribution costs       -862         -28.7         -917         -28.0
     Research and
      development costs         -74          -2.4          -88          -2.7
     Administrative expenses   -175          -5.8         -197          -6.0
                                274           9.1          271           8.3
     Other operating income      17           0.6           48           1.5
     Other operating charges    -20          -0.7          -21          -0.6
                                271           9.0          298           9.2
     Amortization of goodwill   -39          -1.3          -45          -1.4
     Restructuring costs        -25          -0.8          -25          -0.8
     Operating profit (EBIT)    207           6.9          228           7.0
     Net income from associated
      companies                  38           1.3            8           0.2
     Net result from other
      participations              1           0.0           31           1.0
     Net interest expense       -60          -2.0          -85          -2.6
     Financial items            -21          -0.7          -46          -1.4
     Earnings before tax        186           6.2          182           5.6
     Taxes on income            -76          -2.5          -70          -2.2
     Net earnings               110           3.7          112           3.4
 
 
                        Henkel Group Cash Flow Statement
                           January through March 2001
 
     in EUR million                                   Jan.-March     Jan.-March
                                                         2000           2001
 
     Operating profit (EBIT)                              207            228
     Income taxes paid                                    -77            -65
     Depreciation of fixed assets
      (excl. financial assets)                            149            160
     Net gains from disposals of fixed assets
      (excl. financial assets)                             -4            -30
     Cash Flow                                            275            293
     Change in inventories                                -17            -44
     Change in receivables and miscellaneous assets       -98           -210
     Changes in liabilities and provisions                129            139
     Net cash flow from operating activities              289            178
     Net cash flow from investing activities(1)          -233           -161
     Net cash flow from financing activities(2)           -35            -10
     Change in cash and cash equivalents                   21              7
     Effect of exchange rate changes
      on cash and cash equivalents                          5              5
     Change in cash and cash equivalents
      due to first-time inclusion of companies             15              0
     Change in liquid funds and marketable securities      41             12
     Liquid funds and marketable securities on January 1  141            155
     Liquid funds and marketable securities on March 31   182            167
 
     1) Capital expenditure on intangible assets           -3             -3
     Capital expenditure on property,
      plant and equipment                                 -87            -96
     Capital expenditure on financial assets              -13              0
     Acquisitions                                        -144           -102
     Proceeds from disposal of fixed assets                14             40
     Net cash flow from investing activities             -233           -161
 
     2) Henkel KGaA dividends                               0              0
     Subsidiary company dividends
      (to other shareholders)                              -5             -2
     Interest and dividends received                       32             79
     Interest paid                                        -58            -96
     Change in borrowings                                  27             22
     Repurchase of treasury shares                          -             -8
     Other financing transactions                         -31             -5
     Net cash flow from financing activities              -35            -10
 
 

SOURCE Henkel Group
    DUSSELDORF, Germany, April 30 /PRNewswire/ --
 
     Sales and Profits
     From January through March 2001, the Henkel Group realized worldwide sales
 of EUR 3.3 billion.  This represents an 8.7 percent increase over the previous
 year.  Organic growth accounted for 3.2 percent, foreign exchange factors
 contributed 1.0 percentage points to the rise in sales, and a net gain from
 acquisitions and divestments added 4.5 percent.
     In Europe including Africa and the Middle East sales increased by
 6 percent to EUR 2,278 million.  Sales in North America rose by 9.4 percent,
 and in Latin America by 31.2 percent.  An improvement in sales of 20.4 percent
 was achieved in the Asia/Pacific region.
     Operating profit (EBIT) increased by 10.1 percent over the previous year
 figure to EUR 228 million, despite a loss of EUR 15 million from the
 devaluation of the Turkish lira.  The return on capital employed (ROCE) was
 13.2 percent.
     Financial items were depressed by the restructuring costs of
 EUR 35 million of our associated company Clorox, which were however offset by
 income from the sale of company-owned apartments.  The expected total charge
 for the year through Clorox has thus already been incorporated in the first
 quarter.
     Quarterly net earnings amounted to EUR 112 million.  This represents an
 increase over the same period last year of 1.8 percent.
     The cash flow of the Henkel Group improved during the first three months
 of this year by 6.5 percent to EUR 293 million.
 
     Major Events
     In February 2001, the Henkel Group acquired the metal treatment business
 of Atofina, the chemicals division of TotalFinaElf, Paris, France.  This
 division produces and markets products for metal forming and surface
 treatment.  The sales of around EUR 110 million are mainly realized in North
 America and Europe.
     In March 2001, the Henkel Group also acquired on behalf of the Surface
 Technologies division the automotive business of Vagnone & Boeri, Turin,
 Italy.  Specializing in the manufacture of adhesives and sealants for
 automobile producers and their components suppliers, this business has annual
 sales of around EUR 12 million.
 
     Development of Business Sectors
     In the first quarter of 2001, the Adhesives business sector increased
 sales by 13.2 percent to EUR 786 million.  At EUR 63 million, operating profit
 fell short of the figure for the same period last year.  The main reason for
 this lay in higher prices for important raw and packaging materials, which so
 far could not be passed on to the market.  The economic crisis in Turkey
 additionally adversely affected profits.
     Owing to difficulties involving the construction industry and craftsmen,
 the worldwide sales figure for Consumer and Craftsmen Adhesives during the
 first quarter was slightly up on the same period of the previous year.
     Numerous innovations were launched onto the market in the course of the
 first quarter of 2001: Pattex Powerknete (epoxy putties) and Ceresit
 Fliesenkleber (tile adhesive) with improved properties were introduced in
 Germany.
     Specialty plastic adhesives and an innovative brush-applied superglue were
 internationally launched under the Loctite brandname.
     Engineering Adhesives increased sales by 34 percent in the first
 three months of the year, due mainly to the acquisition of the specialty
 polymers business of Dexter.  The established business performed very well in
 Europe, while in North America and Japan the weakness of the industrial sector
 had an adverse effect, particularly on business in the automotive and
 electronic industries.
     Industrial and packaging adhesives continued their upward growth with an
 increase in sales of 10 percent.  Overproportionate sales increases were
 recorded both in Asia/Pacific and in North and South America.  The main
 contributors are the strategic business units paper processing and laminating
 adhesives.  The continuing high raw material prices are being partly offset by
 market price adjustments.
 
     The Cosmetics/Toiletries business sector succeeded in maintaining its high
 performance level of 2000 through the first quarter of 2001.  Sales rose by
 9.1 percent to EUR 497 million and operating profit increased by 3.8 percent
 to EUR 27 million.
     Compared to the same period last year, the brand-name products business
 increased sales by 9 percent.  The main regions contributing to this success
 were Central Europe, Asia/Pacific and North and Latin America.  Business in
 Russia developed particularly well with a sales growth of around 90 percent.
 Business performance in Turkey and Israel was however below target.
     Sales in Hair Cosmetics rose by 19 percent over the previous year.  The
 main contributors were hair colorants, which showed a very positive organic
 growth.  The performance of the Brillance and Palette brands was also
 excellent.  The takeover of Yamahatsu in Japan likewise contributed to the
 success of the hair colorants business.
     Sales in the body care business rose by 4 percent, due especially to the
 success of the Fa brand.  At the beginning of the year the new "Fa Wellness"
 series was launched in key European markets.
     The skin care products Diadermine and Aok performed successfully.  The
 Diadermine Force-Retinol Pflegemaske (facial care mask) and the Aqua-Force
 high-care moisturizer system contributed to the further growth.
     The hair salon business continued to develop well.  Sales grew by
 9 percent during the first quarter of 2001.  The first three months of this
 year saw the launch of several new products such as Igora Personality, Osis
 Carving and Bonacure Sun.
 
     The Laundry & Home Care business sector increased sales by 12.2 percent to
 EUR 759 million.  Operating profit decreased by 15.2 percent to
 EUR 45 million.  Earnings for the first quarter have been adversely affected
 by EUR 10 million due to negative effects from the crisis in Turkey.
     In Europe sales further increased despite virtual stagnation in the
 markets.  In the countries outside Europe, organic growth amounted to more
 than 20 percent, with new activities in Algeria and Mexico.
     Heavy-duty detergents increased sales by 25 percent.  Performance in
 Germany, Italy and the countries of Eastern Europe was especially positive.
 However, due to the economic crisis in Turkey, sales increased only slightly
 despite a gain in market shares.  Record growth rates were attained in the
 Near and Middle East where especially our premium brand Persil is performing
 very well.  Growth of detergent gels continues unabated.
     In China and India, sales volume was satisfactory, albeit with pressure on
 margins remaining high and a discernible shift toward lower-cost products.
 Sales of special detergents were 8 percent down on the figures of the strong
 first quarter of fiscal 2000.
     The sales decrease is attributable both to the economic crisis in Turkey
 and the lack of consumer acceptance of the Home Dry Cleaning category.  The
 Svit brand that was launched in the first quarter of the previous year, lacked
 follow-up purchasing.
     Household cleaner sales rose by 3 percent.  The international roll-outs of
 the newly patented 3in1 tabs technology for automatic dishwashers and the
 innovative WC foam cleaner started very successfully.
 
     The Industrial and Institutional Hygiene/Surface Technologies business
 sector achieved a sales increase of 2.7 percent to EUR 468 million.  Operating
 profit decreased by 16.7 percent to EUR 29 million.
     The drop in earnings is due to price increases for raw materials
 (Industrial and Institutional Hygiene) and the economic downturn in the North
 American automotive sector (Surface Technologies).
     Industrial and Institutional Hygiene (the Henkel-Ecolab joint venture)
 increased sales in the first quarter by 3 percent to EUR 220 million.  Price
 increases have either been implemented or are being prepared for most European
 countries in order to offset the rise in raw material and transport costs.
     An innovative dispenser system for hand and skin hygiene -- Zip 'n' Safe
 -- was launched onto the market.  Keen interest in water- and energy-saving
 systems is reviving demand in the Textile Hygiene unit.  Despite the sales
 losses resulting from the BSE problem in important national markets of the
 meat processing industry, the P3-Hygiene business has grown.  There was a
 decline in demand at the Institutional Hygiene and Floordress businesses,
 which rely more heavily on trade distribution channels.
     At EUR 248 million, sales at Surface Technologies were 2 percent up on
 previous year.  The businesses performed very successfully in Germany.  Good
 growth rates continued in Europe and Asia/Pacific, with the exception of
 Japan.  Sales in Latin America slightly improved.  Business in North America
 suffered from the continuing economic downturn.
     Except for North America, the Automotive business maintained its positive
 development.  Autobody reinforcing products (Terocore) contributed especially
 to the positive overall business development.  Our position in the Italian
 automotive industry has been significantly strengthened by the acquisition of
 Vagnone & Boeri.
     The Industry (non-automotive) business unit maintained performance at the
 level of the previous year.  Worldwide market share gains were attained with
 organic coatings (Granocoat) for the steel and components industries.  The
 acquisition of the Atofina metal treatment and aerospace business in March
 opens up new markets and opportunities for further growth, especially in
 Europe and North America.
 
     During the first quarter of this year, the Chemical Products business
 sector operating as a legally independent company under the name Cognis
 increased sales by 5.7 percent to EUR 748 million.  All Cognis businesses
 contributed to this development.  Operating profit increased by 9.5 percent to
 EUR 56 million, although one-time restructuring costs to increase productivity
 in the US and losses arising from the devaluation of the Turkish lira
 adversely affected earnings by EUR 15 million.
     While the slowdown of the North American economy is noticeable in the US
 businesses, activities in Europe, Asia/Pacific and Latin America showed
 gratifying sales increases.  Earnings development was correspondingly
 positive.
 
     In spite of the economic difficulties prevailing in North America, the
 feedstock chemicals of the Oleochemicals division performed well overall.  The
 margins achieved remain satisfactory.
 
     In Care Chemicals, the strategic business units Nutrition & Health, Food
 Technology and Care Specialties performed well.  The strong sales growth
 encountered in the Skin Care segment deserves particular mention.  This
 encouraging development is also expected to continue through the second
 quarter.
 
     Organic Specialties also performed well, due in particular to an expansion
 in business with products for the coatings and inks industry (in Europe
 especially), the agrochemicals business and sales improvements in the leather
 technology business and in oilfield chemicals.
 
     Major Participations
     Ecolab Inc., St. Paul, Minnesota, USA, in which Henkel holds a
 participating interest of 25.4 percent, registered a growth in sales of
 10 percent to US$ 581 million in the first quarter of 2001.  Earnings in the
 period under review rose by 4 percent to US$ 44 million.
     The Clorox Company, Oakland, California, USA, in which Henkel has a
 26.6 percent participation, recorded sales amounting to US$ 2,873 million in
 the first nine months of fiscal 2000 / 2001.  Net earnings for the period
 under review amounted to US$ 241 million.
 
     Employees
     As of March 31, 2001, the number of employees at the Henkel Group was
 60,516.  The proportion of Henkel personnel working outside Germany was
 74 percent.
 
     Outlook
     Due to the economic slowdown in the USA, Henkel expects difficult business
 conditions for the industrial systems businesses Adhesives and Surface
 Technologies for the first half of 2001.  In the brand-name products business
 Henkel expects a comparatively better development of sales and earnings.
     Despite the unfavorable environment Henkel is confident to achieve a
 satisfactory increase in sales and earnings for the full year 2001.
 
     Employees
     (as of)      Dec. 31, 2000    March 31, 2001    Change
                                                      in %
     Germany          15,878          15,845         -0.2%
     Abroad           45,025          44,671         -0.8%
     Total            60,903          60,516         -0.6%
 
     On April 30, 2001 at 11.30 AM Eastern Standard Time (5.30 PM German Time)
 you can follow the live audio-webcast of the conference call on our website at
 www.ir.henkel.com .  An archive of the audio-webcast will also be available at
 www.ir.henkel.com beginning 2 hours after the completion of the live webcast.
 
 
                        Henkel Group Key Data by Region
                              January - March 2001
 
     in EUR million           Europe/    North     Latin    Asia/     Group
                              Africa/   America   America  Pacific
                            Middle East
 
     Sales Jan.-March 2001     2,278      557       163      278       3,276
     Sales Jan.-March 2000     2,148      510       124      231       3,013
     Change in percent           6.0      9.4      31.2     20.4         8.7
 
     EBIT Jan.-March 2001        212        9         6        1         228
     EBIT Jan.-March 2000        178       16         8        5         207
     Change in percent          19.1    -43.2     -19.8    -79.9        10.1
 
     Return on sales (EBIT)
      Jan.-March 2001
      in percent                 9.3      1.7       3.7      0.4         7.0
     Return on sales (EBIT)
      Jan.-March 2000
      in percent                 8.3      3.2       6.0      2.3         6.9
 
 
              Henkel Group Segment Information by Business Sectors
                           January through March 2001
 
     EUR million               Adhesives     Cosmetics/    Laundry &   Hygiene/
                                             Toiletries    Home Care    Surface
                                                                   Technologies
 
     Sales Jan.-March 2001         786           497          759           468
     Change in %                  13.2           9.1         12.2           2.7
     Proportion of
      Group sales in %            24.0          15.2         23.2          14.3
     Sales Jan.-March 2000         695           456          677           455
     EBITDA Jan.-March 2001        117            49           72            52
     EBITDA Jan.-March 2000        114            50           80            55
     Change in %                   2.6          -2.0        -10.0          -5.5
     Return on sales (EBITDA)
      Jan.-March 2001 in %        14.9           9.9          9.5          11.1
     Return on sales (EBITDA)
      Jan.-March 2000 in %        16.4          11.0         11.8          12.1
     EBITA Jan.-March 2001          90            38           48            33
     EBITA Jan.-March 2000          90            36           54            38
     Change in %                     0           5.6        -11.1         -13.2
     Return on sales (EBITA)
      Jan.-March 2001             11.5           7.6          6.3           7.1
     Return on sales (EBITA)
      Jan.-March 2000             12.9           7.9          8.0           8.4
     EBIT Jan.-March 2001           63            27           45            29
     EBIT Jan.-March 2000           68            26           53            34
     Change in %                  -7.4           3.8        -15.2         -16.7
     Return on sales (EBIT)
      Jan.-March 2001              8.1           5.5          5.9           6.1
     Return on sales (EBIT)
      Jan.-March 2000              9.8           5.7          7.8           7.5
     ROCE
     Jan.-March 2001 in %         11.2          12.5         18.7          15.5
     Capital employed
      Jan.-March 2001            3,174         1,226        1,015           840
     Capital expenditures
      (excl. financial assets)
      Jan.-March 2001               28             9           19            28
     Capital expenditures
      (excl. financial assets)
      Jan.-March 2000              106            18           16            20
     Research & development costs
      (R & D) Jan.-March 2001       24             9           17            12
     R & D as % of sales           3.1           1.8          2.2           2.6
     Research & development costs
      (R & D) Jan.-March 2000       19             8           16            12
     R & D as % of sales           2.7           1.8          2.4           2.6
 
 
     EUR million                      Chemical         Other*        Henkel
                                      Products                       Group
                                      (Cognis)
 
     Sales Jan.-March 2001               748              18         3,276
     Change in %                         5.7           -25.1           8.7
     Proportion of
      Group sales in %                  22.8             0.5         100.0
     Sales Jan.-March 2000               707              23         3,013
     EBITDA Jan.-March 2001               88              10           388
     EBITDA Jan.-March 2000               82             -25           356
     Change in %                         7.3              --           9.0
     Return on sales (EBITDA)
      Jan.-March 2001 in %              11.8              --          11.8
     Return on sales (EBITDA)
      Jan.-March 2000 in %              11.6              --          11.8
     EBITA Jan.-March 2001                57               7           273
     EBITA Jan.-March 2000                53             -25           246
     Change in %                         7.5              --          11.0
     Return on sales (EBITA)
      Jan.-March 2001                    7.6              --           8.3
     Return on sales (EBITA)
      Jan.-March 2000                    7.5               -           8.2
     EBIT Jan.-March 2001                 56               8           228
     EBIT Jan.-March 2000                 51             -25           207
     Change in %                         9.5               -          10.1
     Return on sales (EBIT)
      Jan.-March 2001                    7.5               -           7.0
     Return on sales (EBIT)
      Jan.-March 2000                    7.2               -           6.9
     ROCE
     Jan.-March 2001 in %               12.5               -          13.2
     Capital employed
      Jan.-March 2001                  1,837             152         8,244
     Capital expenditures
      (excl. financial assets)
      Jan.-March 2001                     24               3           111
     Capital expenditures
      (excl. financial assets)
      Jan.-March 2000                     49               1           210
     Research &
      development costs
      (R & D) Jan.-March 2001             19               7            88
     R & D as % of sales                 2.5              --           2.7
     Research &
      development costs
      (R & D) Jan.-March 2000             16               3            74
     R & D as % of sales                 2.3              --           2.5
 
 
                    Henkel Group Consolidated Balance Sheet
 
                               December 31, 2000           March 31, 2001
                             EUR mill.         %       EUR mill           %
 
     Intangible assets        2,602          22.9        2,615          22.1
     Property, plant
      and equipment           2,771          24.3        2,800          23.6
     Financial assets           922           8.1        1,049           8.9
     Fixed assets             6,295          55.3        6,464          54.6
     Inventories              1,711          15.0        1,781          15.0
     Trade accounts
      receivable              2,302          20.1        2,447          20.6
     Other receivables and
      miscellaneous assets      622           5.5          677           5.8
     Liquid funds/marketable
      securities                155           1.5          167           1.4
     Current assets           4,790          42.1        5,072          42.8
     Deferred tax assets        297           2.6          309           2.6
     Total assets            11,382         100.0       11,845         100.0
 
     Equity incl.
      minority interests      3,500          30.8        3,493          29.5
     Provisions for pensions
      and similar obligations 1,984          17.4        2,019          17.1
     Other Provisions         1,076           9.4        1,092           9.3
     Provisions for
      deferred tax liabilities  200           1.8          192           1.6
     Provisions               3,260          28.6        3,303          28.0
     Borrowings               2,963          26.0        3,070          25.8
     Trade accounts payable   1,117           9.8        1,165           9.8
     Other liabilities          542           4.8          814           6.9
     Liabilities              4,622          40.6        5,049          42.5
     Total equity and
      liabilities            11,382         100.0       11,845         100.0
 
 
                 Henkel Group Consolidated Statement of Income
 
                               Jan.-March 2000            Jan.-March 2001
                            EUR mill.          %       EUR mill           %
 
     Sales                    3,013         100.0        3,276         100.0
     Cost of sales           -1,628         -54.0       -1,803         -55.0
     Gross profit             1,385          46.0        1,473          45.0
     Marketing, selling and
      distribution costs       -862         -28.7         -917         -28.0
     Research and
      development costs         -74          -2.4          -88          -2.7
     Administrative expenses   -175          -5.8         -197          -6.0
                                274           9.1          271           8.3
     Other operating income      17           0.6           48           1.5
     Other operating charges    -20          -0.7          -21          -0.6
                                271           9.0          298           9.2
     Amortization of goodwill   -39          -1.3          -45          -1.4
     Restructuring costs        -25          -0.8          -25          -0.8
     Operating profit (EBIT)    207           6.9          228           7.0
     Net income from associated
      companies                  38           1.3            8           0.2
     Net result from other
      participations              1           0.0           31           1.0
     Net interest expense       -60          -2.0          -85          -2.6
     Financial items            -21          -0.7          -46          -1.4
     Earnings before tax        186           6.2          182           5.6
     Taxes on income            -76          -2.5          -70          -2.2
     Net earnings               110           3.7          112           3.4
 
 
                        Henkel Group Cash Flow Statement
                           January through March 2001
 
     in EUR million                                   Jan.-March     Jan.-March
                                                         2000           2001
 
     Operating profit (EBIT)                              207            228
     Income taxes paid                                    -77            -65
     Depreciation of fixed assets
      (excl. financial assets)                            149            160
     Net gains from disposals of fixed assets
      (excl. financial assets)                             -4            -30
     Cash Flow                                            275            293
     Change in inventories                                -17            -44
     Change in receivables and miscellaneous assets       -98           -210
     Changes in liabilities and provisions                129            139
     Net cash flow from operating activities              289            178
     Net cash flow from investing activities(1)          -233           -161
     Net cash flow from financing activities(2)           -35            -10
     Change in cash and cash equivalents                   21              7
     Effect of exchange rate changes
      on cash and cash equivalents                          5              5
     Change in cash and cash equivalents
      due to first-time inclusion of companies             15              0
     Change in liquid funds and marketable securities      41             12
     Liquid funds and marketable securities on January 1  141            155
     Liquid funds and marketable securities on March 31   182            167
 
     1) Capital expenditure on intangible assets           -3             -3
     Capital expenditure on property,
      plant and equipment                                 -87            -96
     Capital expenditure on financial assets              -13              0
     Acquisitions                                        -144           -102
     Proceeds from disposal of fixed assets                14             40
     Net cash flow from investing activities             -233           -161
 
     2) Henkel KGaA dividends                               0              0
     Subsidiary company dividends
      (to other shareholders)                              -5             -2
     Interest and dividends received                       32             79
     Interest paid                                        -58            -96
     Change in borrowings                                  27             22
     Repurchase of treasury shares                          -             -8
     Other financing transactions                         -31             -5
     Net cash flow from financing activities              -35            -10
 
 SOURCE  Henkel Group