UPDATE 2-Nivea maker Beiersdorf disappoints with Q3

* Sees 2010 organic sales growth of around 3 percent

* Lowers targets for consumer division

* Q3 EBIT 167 million euros, vs forecast 173 million

* Tesa adhesives sales rose 15.6 percent in first 9 months

* Shares fall 2.7 percent, vs blue chips up 1.3 percent

(Recasts, updates shares)

FRANKFURT, Nov 4 (BestGrowthStock) – Roaring demand for adhesives
failed to make up for a disappointing consumer products
performance at Beiersdorf (BEIG.DE: ), the German maker of Nivea
skin care, as Europeans stuck to cheaper beauty products.

“Business in the United Kingdom and Russia was very
positive. In the other European countries we were not satisfied
with our performance,” chief executive Thomas Quaas said on
Thursday.

Beiersdorf, which gets over 60 percent of its sales from
Europe, lowered its guidance for sales growth in the consumer
division to 2 percent and its EBIT margin to 11 percent.

It had previously said it wanted to grow faster than the
market, which is set to grow by about 3 percent this year,
according to analysts.

Its shares, which have already underpeformed rivals Henkel
(HNKG_p.DE: ) and L’Oreal (OREP.PA: ) over the past month, were down
2.7 percent at 44.53 euros at 0849 GMT, one of the top German
blue-chip fallers (.GDAXI: ).

“Overall Q3 performance was, once again, disappointing …
with Beiersdorf missing expectations on most important metrics,”
Bernstein analysts wrote in a note.

Beiersdorf, which also makes the luxury La Prairie skincare
range, reported earnings before interest and tax (EBIT) of 167
million euros ($236.2 million), missing expectations.
Third-quarter sales matched expectations at 1.53 billion euros.

The group also set an organic sales growth target of 3
percent in 2010, the first time it has given clear guidance for
the year.

The Tesa adhesives business, which accounts for about 15
percent of sales, saw strong demand from the automotive and
electronics sectors and reported third-quarter sales up 15
percent at 225 million euros.
Analysts had been expecting EBIT of 173 million euros on
sales up 8 percent at 1.5 billion, a Reuters poll found.

Beiersdorf is controlled by the billionaire Herz family,
which bought just over half of the company in 2003 to warn off
U.S. consumer goods giant Procter & Gamble (PG.N: ), which has
regularly expressed admiration for the group. [ID:nLDE68S1G9]
(Reporting by Victoria Bryan; Editing by Will Waterman)
($1 = 0.7071 euro)

UPDATE 2-Nivea maker Beiersdorf disappoints with Q3