Market share gained
(Thomson Reuters ONE) -
Sika AG / Market share gained processed and transmitted by Hugin AS. The issuer is solely responsible for the content of this announcement.
In the second half of the year under review income was higher than in the first
half-year due primarily to improved sales and lower costs, especially for raw
materials. Overall in the reporting year 2009 Sika achieved net sales of CHF
4.155 billion. Operating profit (EBIT) before restructuring amounted to CHF
400.6 million (9.6% of net sales, in 2008 9.1%) while net profit before
restructuring totaled CHF 269.4 million (6.5% of net sales, in 2008 5.8%).
Sika achieved net sales in 2009 of CHF 4.155 billion. The difference to the
previous year comprises a sales decline in local currencies of 3.9%, which
itself includes an acquisition effect of 2.3%, and a currency effect of -6.3%.
Net sales in Swiss francs thus lay 10.2% below the level of the previous year.
Sika sales of products for the building and construction industry declined by
only 2.0% in local currencies. Business with products for industrial
manufacturing benefited in the second half-year of 2009 from programs initiated
in various countries to promote the purchase of new vehicles with low fuel
consumption. Thereby the drop in sales in local currencies, which amounted to
20.1% after six months, could be eased over the entire year to 11.3%. Comparison
with the slump in market volume in the building and construction industry by up
to 30% and among automobile manufacturing suppliers in industrialized nations by
as much as 50% clearly indicates that Sika gained market share.
The Regions developed diversely. In local currencies Sika grew in the Region
IMEA (India, Middle East, Africa) by 11.2%, and in Region Latin America by
8.0%. In the Asia/Pacific Region sales were nearly unchanged overall, though
development from country to country varied. While in emerging markets such as
China or Indonesia Sika achieved double-digit growth rates, sales dropped in
OECD nations (Japan, Australia, New Zealand). Sales declined in the remaining
Regions: Europe North -8.8%, Europe South -4.0%, North America -7.7%. Due to the
increase in sales that Sika achieved in emerging markets, their overall
proportion of Group sales rose from 32% in 2008 to 34% presently. Overall in 23
countries, sales growth was positive in the year under review.
Profit. Following the substantial rise in raw material costs in 2008, Sika
benefited in the year under review as prices for raw materials fell and product
formulations were adapted. Gross profit therefore rose to the end of the year by
3.5 percentage points, amounting to 55.2% of net sales. Adjusted for
acquisitions the company was able to significantly reduce personnel and other
operating costs. Operating profit before depreciation and restructuring costs
improved by 1.0 percentage point as a proportion of net sales. Operating profit
before costs of restructuring improved in proportion to net sales from 9.1% to
9.6% (CHF 400.6 million). The restructuring measures to concentrate European
production of Sikaflex sealants and adhesives and Sarnafil/Sikaplan roofing
membranes impacted the income statement with a one-time charge of CHF 56.6
million, whereby Sika achieved an operating profit of CHF 344.0 million. Net
profit before restructuring at CHF 269.4 million (6.5% of net sales) lay both in
absolute terms and relative to sales above the result of the previous year of
CHF 267.4 million (5.8% of net sales).
Liquidity and balance sheet. Due to the high operating free cash flow of CHF
368.7 million (2008: CHF 165.8 million) as well as the 5-year bond issued in the
spring in the amount of CHF 300 million (coupon 3.5%) for long-term financing,
cash and cash equivalents rose as of the end of the year from CHF 318.3 million
to CHF 801.6 million. As a consequence net debt could be reduced by CHF 200
million to CHF 265 million, whereby the proportion of net debt to shareholders'
equity, the so-called gearing, dropped from 31.8% to 16.6%.
Outlook. In the building and construction industry, market-specific weaknesses
must be expected. Companies could thus continue to postpone investments and
market volume, particularly for commercial buildings, may decline. Whether such
a decline could be compensated by strengthened investment in infrastructure
projects is also dependent, alongside the general economic development, on how
quickly and strongly economic stimulus programs demonstrate effect in markets
that are relevant for Sika. In the area of industrial manufacturing Sika
anticipates a recovery of markets proceeding from their current reduced level.
The company assumes that the Regions will continue to develop differently. While
in the OECD nations a quick recovery is not expected, the emerging markets in
Latin America, in Asia, the Middle East and in India will remain on a growth
curve.
Sika is well positioned in this environment. The company can quickly adapt costs
to altered conditions without thereby diminishing its capability to leverage
potential market opportunities. Chances present themselves in every market area.
For example the demand for efficient and cost-effective building procedures,
energy-optimized structures and sustainable construction materials continues
rising. In addition industry is also calling for new solutions that effectively
reduce the weight of motor vehicles and sustainably lower the costs of assembly.
Sika is attuned to these demands with effective and economic systems.
Pro forma results 2009 before restructuring
+-----------------------+-----------------+-----+---------+-----+------+
|in CHF mn |in % of net sales| 2008| in % of| 2009|? in %|
| | | |net sales| | |
+-----------------------+-----------------+-----+---------+-----+------+
|Operating profit | 9.1|422.0| 9.6|400.6| -5.1%|
+-----------------------+-----------------+-----+---------+-----+------+
|Net profit before taxes| 8.1|373.3| 9.0|372.2| -0.3%|
+-----------------------+-----------------+-----+---------+-----+------+
|Net profit | 5.8|267.4| 6.5|269.4| 0.7%|
+-----------------------+-----------------+-----+---------+-----+------+
Key figures 2009
+--------------------------------+-----------+-------+----------+-------+------+
| |in % of net| 2008| in % of| 2009|? in %|
|in CHF mn | sales| | net sales| | |
+--------------------------------+-----------+-------+----------+-------+------+
|Net sales | |4'624.5| |4'154.9| -10.2|
+--------------------------------+-----------+-------+----------+-------+------+
|Operating profit before | 12.0| 556.1| 13.0| 539.9| -2.9|
|depreciation and restructuring | | | | | |
+--------------------------------+-----------+-------+----------+-------+------+
|Depreciation/amortization/ | -2.9| -134.1| -3.4| -139.3| |
|Impairment without restructuring| | | | | |
+--------------------------------+-----------+-------+----------+-------+------+
|Operating profit before | 9.1| 422.0| 9.6| 400.6| -5.1|
|restructuring | | | | | |
+--------------------------------+-----------+-------+----------+-------+------+
|Restructuring | 0.0| 0.0| -1.4| -56.6| |
+--------------------------------+-----------+-------+----------+-------+------+
|Operating profit | 9.1| 422.0| 8.3| 344.0| -18.5|
+--------------------------------+-----------+-------+----------+-------+------+
|Net profit after tax | 5.8| 267.4| 5.4| 225.7| -15.6|
+--------------------------------+-----------+-------+----------+-------+------+
|Net profit per share (EPS) in | | 107.00| | 91.03| -14.9|
|CHF | | | | | |
+--------------------------------+-----------+-------+----------+-------+------+
|Cash flow from operating | 8.1| 376.8| 12.7| 526.3| |
|activities | | | | | |
+--------------------------------+-----------+-------+----------+-------+------+
|Free cash flow | 1.9| 89.5| 7.5| 312.5| |
+--------------------------------+-----------+-------+----------+-------+------+
|Operating free cash flow | 3.6| 165.8| 8.9| 368.7| |
+--------------------------------+-----------+-------+----------+-------+------+
|Balance sheet total | |3'209.4| |3'629.4| |
+--------------------------------+-----------+-------+----------+-------+------+
|Shareholders' equity | |1'464.7| |1'593.0| |
+--------------------------------+-----------+-------+----------+-------+------+
|Equity ratio in % | | 45.6| | 43.9| |
+--------------------------------+-----------+-------+----------+-------+------+
|ROCE in % before restructuring | | 20.3| | 19.3| |
+--------------------------------+-----------+-------+----------+-------+------+
|Number of employees | | 12'900| | 12'369| |
+--------------------------------+-----------+-------+----------+-------+------+
The Annual Report and the presentations held at the media conference covering
business in 2009 may be retrieved at www.sika.com
Annual Report:
http://www.sika.com/en/group/investor/FinancialReportsandMediaReleases.html
Presentation:
http://www.sika.com/en/group/investors/presentations.html
Sika AG
Zugerstrasse 50
CH-6341 Baar, Switzerland
www.sika.com
Contact: Rainer Weihofen,
Corporate Communications & Investor Relations
Tel.: +41 58 436 68 00
Fax: +41 58 436 68 50
weihofen.rainer(at)ch.sika.com
Sika AG Corporate Profile
Sika AG, located in Baar, Switzerland, is a globally active company supplying
the specialty chemicals markets. It is a leader in processing materials used in
sealing, bonding, damping, reinforcing and protecting load-bearing structures in
construction (buildings and infrastructure construction) and in industry
(vehicle, building component and equipment production).
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. Subsidiaries in more than 70 countries worldwide and approximately
12 000 employees link customers directly to Sika and ensure the success of all
our partners. Sika achieves annual sales of CHF 4.2 billion. Visit our website
atwww.sika.com
The media release can be downloaded from the following link:
[HUG#1389841]
--- End of Message ---
Sika AG
Zugerstrasse 50 Baar null
WKN: 858573;ISIN: CH0000587979;
Media Release: http://hugin.info/100359/R/1389841/347964.pdf
Unternehmensinformation / Kurzprofil:
Datum: 02.03.2010 - 05:00 Uhr
Sprache: Deutsch
News-ID 13027
Anzahl Zeichen: 0
contact information:
Town:
Baar
Kategorie:
Business News
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