* CFO says does not rule out larger takeovers
* Says has no plans for share buybacks
* Sees currency effects hitting Q2, Q3
(Adds further CFO comments on acquisitions)
FRANKFURT, July 5 German consumer goods group
Henkel may make further acquisitions to bolster its
portfolio of detergents and hair care products after announcing
two deals last month, its finance chief was quoted saying.
"We do not rule out larger takeovers in that area," Carsten
Knobel told German weekly Euro am Sonntag.
Henkel aims to expand all three of its main businesses -
Laundry & Home Care, Beauty Care and Adhesive Technologies.
The firm has been shopping for takeover targets for well
over a year as a way to stay competitive in a consolidating
consumer goods market. It recently struck deals to buy French
household cleaner maker Spotless and three U.S. hair care
brands, dipping into a 4 billion euro ($5.5 billion) war chest
it had been building up over several quarters.
In its consumer goods businesses, the focus is on
acquisitions that would strengthen specific product areas in
promising countries, Knobel said, without elaborating.
But he added that Henkel's consumer goods acquisition policy
had no overall geographic focus. Rather, it is looking for
targets that are a good strategic fit for the group, are
attractive in terms of price and margins and are available to
"We do not see hostile takeovers," he said.
In its adhesives business, meanwhile, the company will
concentrate on adding new technologies, he told the paper.
Knobel ruled out that Henkel could return some of its excess
cash to shareholders, for instance via share buybacks.
"That is currently not an option. Investments in further
development of the company, including acquisitions, remain the
best way to increase value in the interest of shareholders," he
told the paper.
He also said he expects to see similar negative currency
effects in the company's second and third-quarter results as in
the first quarter.
In the first three months of the year, Henkel's sales fell
2.6 percent to 3.93 billion euros, as currency effects shaved
almost 7 percentage points off growth.
"In the short term our ability to offset these negative
effects is limited," Knobel said, adding there were no plans to
try to make up for currency swings by raising prices.
($1 = 0.7331 Euros)
(Reporting by Maria Sheahan; Editing by David Holmes and Pravin