Reckitt expects savings to boost income by 30%

Click to follow

Reckitt Benckiser, the Anglo-Dutch maker of household cleaning products, yesterday raised its full-year targets after higher-than-expected cost savings boosted profits for the third quarter.

Reckitt Benckiser, the Anglo-Dutch maker of household cleaning products, yesterday raised its full-year targets after higher-than-expected cost savings boosted profits for the third quarter.

Bart Becht, the chief executive of the recently merged Vanish to Dettol group, said net 2000 income was now expected to grow by 30 per cent, compared with an earlier forecast of 25 per cent, at constant exchange rates. He added that revenues from continuing operations would be "ahead" of the company's previous estimates of 5 per cent growth.

Mr Becht said: "The achievement of these targets will firmly establish the turnaround of the business and create a solid platform for future growth and value creation."

The comments came as Reckitt Benckiser, which was formed last year through the £4.86bn merger of the UK's Reckitt & Colman and Benckiser of Holland, reported pre-tax profits, excluding reorganisation and merger integration costs, of £86m for the three months ended 30 September, up from £52m. Net income in the period rose by 68 per cent to £62m. Reckitt said it was on course to beat its full-year synergy target of £39m but has not adjusted its plans to reap savings of £160m by 2002. Reckitt shares closed down 33.5p at 923p yesterday.

Comments