* Q4 sales 3.852 bln eur vs Rtrs poll avg 4.059 bln
* Q4 adj EBIT in line at 584 mln eur
* Sees adj EBIT margin of 15.5 pct in 2014 vs 15.4 pct in
* Shares indicated 0.2 percent higher, as DAX seen 1 pct
(Adds more details, outlook)
FRANKFURT, Feb 20 German consumer goods group
Henkel said that weak foreign currencies would
continue to hurt its results in the first half of 2014 as it
reported fourth-quarter sales below expectations.
"The economic environment remains challenging and we expect
persisting foreign exchange effects, particularly in the first
half of the year," Chief Executive Kasper Rorsted said on
The group therefore expects only a slight increase in
adjusted operating margin this year to 15.5 percent, after an
increase of 1.3 percentage points to 15.4 percent in 2013,
The group, which makes Persil washing powder and Schwarzkopf
hair products, as well as industrial adhesives, reported
fourth-quarter sales of 3.852 billion euros ($5.3 billion), down
from 4 billion euros in 2012 and hurt by currency effects.
Analysts had expected 4.059 billion euros in a Reuters poll.
Adjusted for currency effects and acquisitions, sales would
have risen 3.5 percent, Henkel said.
Adjusted earnings before interest and tax were in line with
analyst expectations at 584 million euros.
The company proposed an increase in the dividend to 1.22
euros per preferred share and 1.20 euros per ordinary share,
from 0.95 euros and 0.93 euros a year ago.
Analysts had predicted a dividend payout of 1.14 euros per
ordinary share, up 20 percent from the 0.95 euros for 2012.
Henkel last month said it would pay out more of its profits
to shareholders in dividends as profits improve and it struggles
to find a suitable takeover target for its cash pile.
The company's last big acquisition was a 3.7 billion euro
deal for National Starch in 2008 to expand its adhesives
division. It has been on the hunt for deals for more than a year
and has said it has about 4 billion euros available.
($1 = 0.7271 euros)
(Reporting by Victoria Bryan; Editing by Edward Taylor and