July 6 (Bloomberg) -- Henkel KGaA, the German maker of Persil detergent, reduced its full-year sales forecast after demand declined in recent months in some European markets.

Sales adjusted for currency effects and acquisitions will rise 2 percent this year, rather than between 3 percent and 4 percent, spokesman Lars Witteck said. The Dusseldorf, Germany- based company still expects operating profit to rise more than 10 percent this year, he said.

``The ongoing sluggish demand in Germany in the consumer markets relevant for Henkel has spread to the other European markets in the past few months,'' the company said in a release.

Chief Executive Ulrich Lehner has said Henkel's $2.9 billion acquisition of Dial Corp. in the U.S., its largest ever, will help boost profit by about 15 percent this year as the company expands in the world's largest economy.

Henkel is boosting its home-care brands in North America with products such as Purex detergent and Dial soap. Dial's 2004 sales will rise between 3 percent and 4 percent, Chief Financial Officer Lothar Steinebach said in May.

The German company said it has already started cutting costs and spending more money on brands and markets to boost its competitiveness. The company's U.S. sales will increase to 22 percent of total revenue from 12 percent with the purchase of Scottsdale, Arizona-based Dial.

To contact the reporter on this story: Nicole Weimer in Frankfurt at nweimer@bloomberg.net; Patrick Donahue in Frankfurt at pdonahue1@bloomberg.net.

Last Updated: July 6, 2004 02:53 EDT