SIKA WITH STRONG GROWTH IN EMERGING MARKETS
(Thomson Reuters ONE) -
Sika AG /
SIKA WITH STRONG GROWTH IN EMERGING MARKETS
. Processed and transmitted by Thomson Reuters ONE.
The issuer is solely responsible for the content of this announcement.
* Sales growth of 4.4% (4.0% in CHF)
* Sales up 15.3% in emerging markets
* 11.4% rise in EBIT
* Above-average increase in net profit of 13.2%
Following a slow first quarter in which the construction sector was hit by bad
weather conditions, in the second quarter Sika made good the delays encountered
in building projects. Sika posted growth in all regions and achieved an 8.3%
increase in second-quarter sales. Net sales for the first half of 2013 came to
CHF 2,402.5 million, corresponding to an increase of 4.4% in local currencies
and 4.0% in CHF respectively.
Jan Jenisch, CEO of Sika: "After a weather related slow start of the year our
employees delivered an excellent second quarter with sales growth of 8.3% and a
significant improvement of our margins. Driven by the opening of ten new
factories in the last twelve months, the accelerated pace of expansion in the
emerging markets progressed ahead of our expectations resulting in a 15.3% sales
growth."
PROFITABILITY UP
At 53.2%, the gross result for the first half of 2013 revealed a year-on-year
rise (first half of 2012: 53.0%). Sales growth, a solid gross result and
selective efficiency improvements led to an above-average increase in
profitability. Sika achieved operating profit of CHF 220.2 million, representing
an increase of 11.4% (first half of 2012: CHF 197.6 million). Net profit after
taxes grew by 13.2% to CHF 141.3 million (first half of 2012: CHF 124.8
million).
ALL REGIONS SHOWING GROWTH IN THE SECOND QUARTER
With net sales of CHF 1,128.5 million, Sika reported 0.8% local currency growth
in the region EMEA (Europe, Middle East, Africa) in the first half of 2013
(first half of 2012: CHF 1,108.5 million). Sika realized significant growth in
Middle Eastern and African emerging markets as well as in Russia. In key Sika
markets such as Germany and the Northern European countries, the sentiment was
rather cautious in the first half of 2013 and numerous new infrastructure
projects were postponed. There is still no trend reversal in sight in Southern
Europe. Sika reported a further improvement in profitability in the region EMEA,
with the EBIT margin at 10.0% or around 20% higher than in the first half of
2012.
After a severe winter with a substantial decrease in sales in the roofing
segment, Sika's markets in the region North America improved slightly. Various
building projects which had been delayed owing to the weather were started in
the second quarter of 2013. There is still some catching up to do, though. While
stricter budget restrictions imposed by the US government and the individual
federal states slowed Sika's business to some extent, the recovery in the
housing market had a positive impact on the construction climate.
Maintaining the momentum seen in previous periods in the region Latin America,
Sika recorded 11.8% growth in the first half of 2013. Sika reported a
substantial increase in sales in all target markets throughout the entire
region, with growth especially strong in Brazil and Argentina. Inflation trends
in South America had a negative effect in individual states.
In the region Asia/Pacific, Sika saw further strong growth and lifted net sales
by 11.2% in local currencies. While volumes were stable in the OECD countries,
China and Southeast Asia achieved high double-digit growth. The systematic
growth strategy is paying off here, in particular geographic expansion,
investments in production capacity, and the focus on project business.
Although the automotive market witnessed only moderate growth of 1% overall,
Sika recorded a significant increase in sales in the automotive business area in
the first half of 2013. Thanks to new technologies, the Group profited in
particular from the launch of new models in the premium segment. Overall, Sika
achieved a high single digit percentage increase year-on-year in local
currencies in this area.
OUTLOOK
For the second half of 2013, Sika expects to see a continuation of the dynamic
development in the emerging markets. Demand from Asia will remain strong, and
Sika is projecting double-digit growth rates for Latin America. On the other
hand, developments in Europe are still uncertain.
Based on its half-year results and with the acquisitions in the UK , India,
Mexico, and Australia, Sika confirms the growth targets of 4.0% to 6.0% in local
currency communicated in the 2012 Annual Report as well as the slight
improvement in profitability for 2013.
KEY FIGURES HALF-YEAR 2013
-------------------------------------------------------------------------------
1/1/2012 - 1/1/2013 - Change in %
in CHF mn 6/30/2012 6/30/2013
-------------------------------------------------------------------------------
Restated(1)
-------------------------------------------------------------------------------
Net sales 2'310.7 2'402.5 4.0
-------------------------------------------------------------------------------
Gross result 1'225.5 1'277.4 4.2
-------------------------------------------------------------------------------
Operating profit before
depreciation (EBITDA) 265.4 293.4 10.6
-------------------------------------------------------------------------------
Operating profit (EBIT) 197.6 220.2 11.4
-------------------------------------------------------------------------------
Net profit after taxes 124.8 141.3 13.2
-------------------------------------------------------------------------------
Earnings per share in CHF (2) 49.17 54.94 11.7
-------------------------------------------------------------------------------
Operating free cash flow -13.8 15.3
-------------------------------------------------------------------------------
-------------------------------------------------------------------------------
Balance sheet total(3) 4'282.8 4'138.7
-------------------------------------------------------------------------------
Shareholders' equity (3) 1'912.4 1'932.3
-------------------------------------------------------------------------------
Equity ratio in % (3,4) 44.7 46.7
-------------------------------------------------------------------------------
Return on capital employed
(ROCE)
in % (5 ) 15.6 18.0
-------------------------------------------------------------------------------
1 Restated due to application of IAS 19 amended.
2 Calculated on the basis of net profit after non-controlling interests and
the average number of shares entitled to dividend.
3 As of December 31, 2012/June 30, 2013.
4 Shareholders' equity divided by balance sheet total.
5 Capital employed = current assets, PPE, intangible assets less cash and cash
equivalents, current securities, current liabilities (excluding bank loans and
bond).
NET SALES BY REGION
-------------------------------------------------------------------------------
1/1/2012 - 1/1/2013 - Change compared to prior year
in CHF mn 6/30/2012(1) 6/30/2013 (+/- in %)
-------------------------------------------------------------------------------
In CHF In local Currency
currencies(2) impact
-------------------------------------------------------------------------------
By region
-------------------------------------------------------------------------------
EMEA 1'108.5 1'128.5 1.8 0.8 1.0
-------------------------------------------------------------------------------
North America 332.2 335.3 0.9 -0.2 1.1
-------------------------------------------------------------------------------
Latin America 280.7 303.0 7.9 11.8 -3.9
-------------------------------------------------------------------------------
Asia/Pacific 422.3 455.2 7.8 11.2 -3.4
-------------------------------------------------------------------------------
Other segments and
activities 167.0 180.5 8.1 7.8 0.3
-------------------------------------------------------------------------------
Net sales 2'310.7 2'402.5 4.0 4.4 -0.4
-------------------------------------------------------------------------------
Products for
construction
industry 1'829.6 1'903.1 4.0 4.6 -0.6
-------------------------------------------------------------------------------
Products for
industrial
manufacturing 481.1 499.4 3.8 3.5 0.3
-------------------------------------------------------------------------------
1 Restated due to amendments in segment structure.
2 Including acquisitions.
+------------------------------------------------------------------------------+
| Conference call today, July 29, 2013 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)58 310 5000 (Europe, Asia) |
| |
|+1 (1)631 570 5613 (North America, Latin America) |
| |
|+44 (0)203 059 5862 (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 4330 (Europe, Asia) |
| |
|+1 (1)866 416 25 58 (North America, Latin America) |
| |
|+44 (0)207 108 6233 (UK) |
| |
| |
| |
|Upon request please enter the code 13630 followed by the #sign. |
+------------------------------------------------------------------------------+
FINANCIAL CALENDAR:
Wednesday, October 30, 2013: Shareholder letter (nine months 2013)
Tuesday, January 14, 2014: Net sales 2013
Tuesday, March 4, 2014: Full-year results 2013; media conference/analyst
presentation
Tuesday, April 15, 2014: Shareholder letter (first quarter 2014)/46(th) Annual
General Meeting, Lorzensaal, Cham, 4pm
Tuesday, July 29, 2014: Shareholder letter (Half-year report 2014)
Sika AG Contact: Dominik Slappnig
Zugerstrasse 50 Corporate Communications & Investor Relations
6341 Baar, Switzerland Tel.: +41 58 436 68 21
www.sika.com 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, solar and wind power
plants, façades). 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 80 countries and some 15 200 employees link
customers directly to Sika and guarantee the success of all partners. Sika
generated annual sales of CHF 4 829 million in 2012.
The media release and the report can be downloaded from the following links:
Media Release:
http://hugin.info/100359/R/1719290/572181.pdf
Half-year report 2013 - PDF:
http://hugin.info/100359/R/1719290/572180.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#1719290]
Unternehmensinformation / Kurzprofil:
Datum: 29.07.2013 - 05:00 Uhr
Sprache: Deutsch
News-ID 282356
Anzahl Zeichen: 16146
contact information:
Town:
Baar
Kategorie:
Business News
Diese Pressemitteilung wurde bisher 219 mal aufgerufen.
Die Pressemitteilung mit dem Titel:
"SIKA WITH STRONG GROWTH IN EMERGING MARKETS"
steht unter der journalistisch-redaktionellen Verantwortung von
Sika AG (Nachricht senden)
Beachten Sie bitte die weiteren Informationen zum Haftungsauschluß (gemäß TMG - TeleMedianGesetz) und dem Datenschutz (gemäß der DSGVO).
