Sika gains momentum
(Thomson Reuters ONE) -
Sika AG / Sika gains momentum processed and transmitted by Hugin AS. The issuer is solely responsible for the content of this announcement.
Continuous positive development in emerging markets and the revival of the
industry business drove Sika to achievement of 2.3% sales growth in local
currencies in the first quarter of 2010, although building activity in Europe
and North America was clearly hampered due to weather. Gross margin could be
maintained at the high level of the second half-year of 2009.
Sika increased sales in the first quarter of the current business year by 2.3%
in local currencies. Included therein is an acquisition effect of 1.3%. Exchange
rate fluctuations had a negative effect of -1.7%, so that sales in Swiss francs
in comparison with the first quarter of the previous year grew by 0.6% from CHF
888 million to CHF 894 million.
Development in emerging markets was of critical significance for this sales
growth. In Region IMEA (India, Middle East, Africa), Sika increased sales in
local currencies by nearly 20%. Region Asia/Pacific followed with sales growth
of 16.8%, with Sika companies in China (+44%), Vietnam (+31%), Thailand (+23%)
and Indonesia (+20%) being particularly successful. In Latin America the company
grew its sales in local currencies by 11.2% (Brazil +24%).
Building activity in Europe and North America was strongly hindered by a
lingering and snowy winter. Conditions improved during the month of March and
demand rose once again. Overall, sales in the first quarter in Region Europe
North decreased by 3.5% and in Europe South by 2.2%. Sales in North America were
2.4% lower than those in the same quarter of the previous year.
The two product groups also varied in their development. While construction
products sales were 1.5% below the level of the previous year due to weather,
business with products for industrial manufacturing was able to gain 17.4%.
Above all the large number of motor vehicle models that Sika had secured in
2008 and 2009 and which are now leaving manufacturers' assembly lines
contributed to this success. During the reporting period manufacturers also
boosted their production figures.
Country-specific cost-reduction programs showed their effectiveness with the
antici-pated time lag, while restructuring measures for adhesives and roofing
membranes in Europe are being implemented as planned. Profitability thus
remained at a high level in comparison with previous years.
Outlook
In the area of industrial manufacturing Sika anticipates a continuation of the
market recovery observed during the first quarter, while in the construction
industry one must reckon with market-specific weaknesses. The company also
assumes that the Regions will show continued variance in development. Sika is
well-position in this environment and anticipates sales growth for the year
overall.
Net sales in the first three months
1/1/2009 1/1/2010 Change compared to prior year
in CHF mn -3/31/2009 -3/31/2010 (+/- in %)
--------------------------------------------------------------------------------
In Swiss In local Currency
francs currencies[2] impact
--------------------------------------------------------------------------------
By region
--------------------------------------------------------------------------------
Europe North 287.4 276.7 -3.7 -3.5 -0.2
--------------------------------------------------------------------------------
Europe South 216.1 206.6 -4.4 -2.2 -2.2
--------------------------------------------------------------------------------
North America 126.5 115.5 -8.7 -2.4 -6.3
--------------------------------------------------------------------------------
Latin America 97.4 106.3 9.1 11.2 -2.1
--------------------------------------------------------------------------------
IMEA[1] 58.9 70.1 18.9 19.6 -0.7
--------------------------------------------------------------------------------
Asia/Pacific 98.6 115.8 17.4 16.8 0.6
--------------------------------------------------------------------------------
Central Services 3.1 2.6 -14.4 -14.4 -
--------------------------------------------------------------------------------
Consolidated net
sales 888.1 893.6 0.6 2.3 -1.7
--------------------------------------------------------------------------------
Products for
construction
industry 705.6 683.5 -3.1 -1.5 -1.6
--------------------------------------------------------------------------------
Products for
industrial
manufacturing 182.5 210.1 15.1 17.4 -2.3
--------------------------------------------------------------------------------
[1] India, Middle East, Africa
(IMEA)
[2] including
acquisitions
-END--
Sika AG Contact: Rainer Weihofen,
Zugerstrasse 50 Corporate Communications & Investor
CH-6341 Baar, Switzerland Relations
www.sika.com
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#1406065]
--- End of Message ---
Sika AG
Zugerstrasse 50 Baar null
WKN: 858573;ISIN: CH0000587979;
Media Release: http://hugin.info/100359/R/1406065/359707.pdf
Unternehmensinformation / Kurzprofil:
Datum: 21.04.2010 - 05:00 Uhr
Sprache: Deutsch
News-ID 19369
Anzahl Zeichen: 0
contact information:
Town:
Baar
Kategorie:
Business News
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