Sika: 19.5% growth in local currencies - results influenced by high raw material prices
(Thomson Reuters ONE) -
Sika AG /
Sika: 19.5% growth in local currencies - results influenced by high raw material
prices
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Sika posted a 6.6% increase in sales in the first half of 2011, achieving net
sales of CHF 2 231.5 million. In local currencies, Sika lifted sales by 19.5%.
The currency effect for the first half-year stood at -12.9%. Margins were
squeezed by the rising raw material prices.
In terms of local currencies, Sika posted a 19.5% increase in sales in the
first half of the present business year. This figure includes an acquisition
effect of 4.7%. Due to the negative exchange rate effects (-12.9%), sales in
Swiss francs were only 6.6% up year-on-year, from CHF 2 094.3 million to CHF
2 231.5 million.
Margins were squeezed by the rising raw material costs. Although price rises
have been implemented, these can only be passed on to the market after a certain
time lag. Consequently, the gross result in relation to sales dropped below the
previous year's level to 51.9%. At the level of operating profit before
depreciation, the narrowing margins were partly offset by efficiency gains.
The EBITDA margin now totals 10.8% (2010: 13.6%). Operating profit sank
accordingly and, at CHF 177.6 million (2010: CHF 216.5 million), is 18.0% down
year-on-year. Net profit now stands at CHF 113.6 million (2010: CHF 150.5
million), equivalent to a decline of 24.5%.
Expansion in all regions
Adjusted for exchange rates, Sika's sales grew in all regions. The emerging
countries continued to record positive trends, with significant growth rates in
terms of local currencies: sales in the Asia/Pacific region increased by 52.2%,
with new acquisitions accounting for 27.8%. Latin America continued to perform
strongly, with sales up by 24.4%. At 10.2%, growth in IMEA (India, Middle East,
Africa) was to some extent dampened by the political unrest in North Africa and
the Middle East. The picture in the more mature markets was as follows:
expanding market access in North America paved the way for a 25.4% rise,
including an acquisition effect of 8.5%. Europe North grew by 14.8% as the
region benefited heavily from the mild winter. The figures for Europe South
eased gently upwards by 3.7% despite flagging markets.
The first half-year witnessed a brisk demand for both construction sector and
industrial manufacturing products. In terms of local currencies, sales to the
construction sector rose by 21.7%, with acquisitions accounting for 6.0%. For
the sector industry, the growth in local currencies ran to 11.4%, including an
acquisition effect of 0.2%.
High raw material prices, crises in southern Europe and North Africa, strong
Swiss franc
The price situation for the key raw materials needed by Sika remains
challenging. The uptrend in raw material prices witnessed in the second half of
2010 failed to level off in the first half-year and, in some cases, even
gathered pace. At the same time, it was only possible to pass on higher material
costs to the market with a certain time lag.
The difficult situation in Europe's peripheral countries has worsened, thereby
denting the performance of the relevant national organizations. Nor were the
results helped by the political unrest in North Africa and the Middle East.
The sharp appreciation of the Swiss franc compared with the first half of 2010
has taken its toll. The exchange rate shifts negatively impacted sales to the
tune of -12.9%. This almost exclusively corresponds to translation effects. The
Group's decentralized organization and the fact that procurement, manufacturing
and sales take place in the same currency area, provide a good natural hedge
against exchange rate movements.
Outlook
Sika expects the positive trends in the emerging countries to continue into the
second half - in contrast to the somewhat mixed picture predicted for the mature
markets. Sika should still be able to exceed average market growth rates and win
new market share.
Sika assumes that raw material prices will remain high. However, given the price
increases implemented, the pressure on margins should ease during the course of
the year.
Details relating to today's conference call can be found on page 4.
Key Figures Half-Year 2011
1/1/2010- 1/1/2011-
in CHF mn 6/30/2010 6/30/2011 Change in %
Sika Group
Net sales 2,094.3 2,231.5 6.6
Operating profit before depreciation (EBITDA) 284.2 241.7 -15.0
Depreciation/Amortization/Impairment -67.7 -64.1 -5.3
Operating profit (EBIT) 216.5 177.6 -18.0
Net profit after taxes 150.5 113.6 -24.5
Earnings per share in CHF[1] 60.42 44.96 -25.6
Cash flow from operating activities 56.0 15.0
Free cash flow -30.5 -34.4
Operating free cash flow 13.2 -28.0
Balance sheet total[2] 3,931.7 3,901.6
Shareholders' equity[2] 1,752.2 1,714.3
Equity ratio in %[2],[3] 44.6 43.9
Return on capital employed (ROCE) in %[4] 20.6 18.3
[1] Excluding non-controlling interests
[2] As of December 31, 2010 / June 30, 2011
[3] Shareholders' equity divided by balance sheet total
[4] Capital employed = operating assets ./. Cash and cash equivalents ./. non-
interest-bearing current liabilities (each with average value)
Detailed information on the half-year results can be found in our Half-Year
Report 2011. Information can be downloaded directly from our website
www.sika.com or obtained in printed form from the above address.
Conference call today, July 26, 2011 at 3 pm (CET)
In connection with the publication of the half-year results a conference call
will be held today. Please dial in 10 to 15 minutes before the start at
+41 (0) 91 610 56 00 (Europe)
+1 (1) 866 291 41 66 (USA)
+44 (0) 203 059 58 62 (UK)
An operator will then connect you with Ronald Trächsel (CFO) and Dominik
Slappnig (Head IR).
The conference call will be recorded and remains retrievable for 24 hours under
the following numbers:
+41 (0) 91 612 43 30 (Europe)
+1 (1) 866 416 25 58 (USA)
+44 (0) 207 108 62 33 (UK)
Upon request please enter the code 19552, followed by the #sign.
Sika AG Contact: Dominik Slappnig
Zugerstrasse 50 Corporate Communications & Investor Relations
CH-6341 Baar, Switzerland Tel.: +41 58 436 68 21
www.sika.com Fax: +41 58 436 68 50
slappnig.dominik(at)ch.sika.com
Sika AG Corporate Profile
Sika AG, located in Baar, Switzerland, is a globally active specialty chemicals
company. Sika supplies the building and construction industry as well as
manufacturing industries (automotive, bus, truck, rail, alternative energies,
building components). Sika is a leader in processing materials used in sealing,
bonding, damping, reinforcing and protecting load-bearing structures. Sika's
product lines feature high-quality concrete admixtures, specialty mortars,
sealants and adhesives, damping and reinforcing materials, structural
strengthening systems, industrial flooring as well as roofing and waterproofing
systems. Worldwide local presence in 76 countries and some 14 000 employees link
customers directly to Sika and guarantee the success of all partners. Sika
generated 2010 annual sales of CHF 4.4 billion. Visit our website
atwww.sika.com.
The media release and the report can be downloaded from the following links:
--- End of Message ---
Sika AG
Zugerstrasse 50 Baar
WKN: 858573;ISIN: CH0000587979;
Half-year report 2011 - PDF:
http://hugin.info/100359/R/1533300/467064.pdf
Media Release:
http://hugin.info/100359/R/1533300/467065.pdf
This announcement is distributed by Thomson Reuters on behalf of
Thomson Reuters clients. The owner of this announcement warrants that:
(i) the releases contained herein are protected by copyright and
other applicable laws; and
(ii) they are solely responsible for the content, accuracy and
originality of the information contained therein.
Source: Sika AG via Thomson Reuters ONE
[HUG#1533300]
Unternehmensinformation / Kurzprofil:
Datum: 26.07.2011 - 06:01 Uhr
Sprache: Deutsch
News-ID 56691
Anzahl Zeichen: 9887
contact information:
Town:
Baar
Kategorie:
Business News
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