Half-Year Report 2009: Sika shows fortitude in a tough market
environment
(Thomson Reuters ONE) - Corporate news announcement processed and transmitted by Hugin AS.The issuer is solely responsible for the content of this announcement. ------------------------------------------------------------------------------------ Latin America, Region IMEA (India, Middle East, Africa) and Chinacontinue to show solid growth figures, while USA, Europe and someAsian countries register slumps in volume as a result of thefinancial crisis and also due to currency effects. The drops involume are notwithstanding lower than the sector average. At -6% thecurrency effects remain strongly negative. Adjusted for acquisitionsand currency influences, sales declined 9% in comparison with theprior year period. Country-specific cost reduction programs aredemonstrating impact, even though with some delay. Sika anticipatesfurther sustained growth for the second half-year in a number ofemerging countries, but no general recovery of recessive markets.In the first half-year of 2009, consolidated Group sales declined by6.3% in local currencies. Included therein is an acquisition effectof 2.7%. Exchange rate fluctuations brought a negative impact of6.0%, so that sales in Swiss francs in comparison with the firsthalf-year of the prior year decreased by 12.3% from CHF 2 262.1million to CHF 1 982.9 million.Adjusted for currency influences Sika grew further in the RegionsIMEA (+9.2%) and Latin America (+9.6%). In the remaining Regions,sales development in local currencies was negative: Europe North-11.6%, Europe South -6.4%, North America -12.0% and Asia/Pacific-2.6%. In almost all countries Sika lies however above the generalmarket development. Sales of products for the construction industrydeclined 2.4% during the reporting period with adjustment forcurrency effects and including an acquisition effect of 3.5%. Amongproducts for industrial manufacturing the decrease in sales amountedto 20.1%, as activities in automotive manufacturing (automobile,trucks and busses) have sputtered along at a very low level since thebeginning of the year.Material costs declined as anticipated during the reporting period.Negative currency effects and the revaluation of inventories undidthis somewhat, such that gross profit improved by only 0.7 percentagepoints in relation to sales. Lower utilization above all of plants incentral factories burdened the result. Personnel costs rose slightly,dropping somewhat however when adjusted for acquisitions. Savingsmeasures in personnel costs will first show impact in the secondhalf-year. Other operating expenses could be reduced in the firsthalf-year in accordance with reductions in volume. Overall theoperating profit before depreciation EBITDA declined by 31.1% to CHF214 million, yielding an EBITDA margin of 10.8%. Operating profitregistered at CHF 148.3 million and thereby lay 40.8% below the prioryear.Operating free cash flow increased by CHF 72 million as a result ofthe reduced net working capital. Cash flows from investment andfinancing activities were influenced by the successful placement of afive-year bond issue in the Swiss capital market with an amount ofCHF 300 million and a coupon of 3.5% per annum. The payment undersubscription took place on June 4, 2009. The transaction serves thelong-term, general financing of the company.AcquisitionsDuring the reporting period Sika acquired the English Iotech GroupLimited with subsidiaries in Great Britain, USA and Belgium. Iotechis specialized in the formulation, production and distribution ofpolyurethane liquid membranes and precursor products. Liquidmembranes are used worldwide in the market sectors roofing andwaterproofing, with application here mainly for renovation andrefurbishment of small and mid-sized roofs. The global market forthese membranes is strongly fragmented; active are only local orregional suppliers. Growth rates lie above that of the buildingsector as a whole.OutlookWith the exception of Eastern Europe, Sika anticipates further growthin emerging countries in the course of the year, above all due tocontinually high demand in the area of infrastructure. In themid-term sales in this segment should show additional positivedevelopment, since the economic stimulus programs agreed to by manycountries will presumably display their first impact as of 2010. Incontrast to this the company sees but few positive signals amongcommercial buildings for an early recovery. Sika rather anticipates afurther decline in building activity, since many companies arepostponing their investments. Residential construction has endured alow ceiling of activity for some time now. Sales are increasinglyshifting from new construction to renovation. Sika is well positionedhere. Motor vehicle manufacturing will very likely remain in itscurrent low gear. The segments railroad and mass transit busses forman exception, because here again economic stimulus packages couldrevive demand. Sika sees growth in the area of renewable energyproduction, in the construction of wind and solar power facilities.Regarding raw material prices, Sika expects for the entire year somerelief in comparison with the prior year, even if prices in thesecond half-year might increase slightly.Sika will continue its cost-reduction efforts unabated in the secondhalf of the year. In addition, during the phase of relatively lowcapacity utilization the company will update the process technologyof its production network to the state of the art. Sika strives tomaintain the necessary workforce of well qualified employees for asolution-oriented sales approach as far as possible, in order toexploit available market opportunities in our target markets also inperiods of crisis. Changein CHF mn 6/30/2008 6/30/2009 in %Sika GroupNet sales 2 262.1 1 982.9 -12.3Operating profit before depreciation(EBITDA) 310.7 214.0 -31.1Depreciation/Amortization/Impairment -60.2 -65.7Operating profit (EBIT) 250.5 148.3 -40.8Net profit after taxes 162.6 92.1 -43.4Earnings per share in CHF[1] 65.0 37.1 -43.0Cash flow from operating activities 2.0 83.3Operating free cash flow -65.1 6.9Free cash flow -114.6 -120.1Balance sheet total 3 348.3 3 512.5 4.9Shareholders' equity 1 425.5 1 469.6 3.1Equity ratio in %[2] 42.6 41.8 -1.9Return on capital employed (ROCE) in%[3] 23.0 14.0 -39.1[1] Excluding minority interests[2] Shareholders' equity divided by balance sheet total[3] Capital employed = operating assets. /.Cash and cashequivalents./.non interest-bearing current liabilities (each ataverage value)Detailed information on the half-year results can be found in ourHalf-Year Report 2009. Information can be downloaded directly fromour website www.sika.com or obtained in printed form from the aboveaddress. Conference call today, July 31, 2009 at 4 pm (CEST)In connection with the publication of half-year results a conferencecall will take place today. Please dial in 10 to 15 minutes beforethe start at+41 (0) 91 610 56 00 (Europe)+1 (1) 866 291 41 66 (USA)+44 (0) 207 107 06 11 (UK)An operator will then connect you with Ronald Trächsel (CFO) andRainer Weihofen (IR).The conference call will be recorded and remains retrievable for 72hours 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 ID 12866, followed by the symbol#.Sika AGZugerstrasse 50CH-6341 Baar, Schweizwww.sika.comContact: Rainer Weihofen,Corporate Communications & Investor RelationsTel.: +41 58 436 68 00Fax: +41 58 436 68 50weihofen.rainer(at)ch.sika.comSika AG Corporate ProfileSika AG, located in Baar, Switzerland, is a globally active companysupplying the specialty chemicals markets. It is a leader inprocessing materials used in sealing, bonding, damping, reinforcingand protecting load-bearing structures in construction (buildings andinfrastructure construction) and in industry (vehicle, buildingcomponent and equipment production).Sika's product lines feature high-quality concrete admixtures,specialty mortars, sealants and adhesives, damping and reinforcingmaterials, structural strengthening systems, industrial flooring andmembranes. Subsidiaries in more than 70 countries worldwide andapproximately 12,900 employees link customers directly to Sika andguarantee the success of all of its business relationships. With thisbusiness structure Sika generates annual sales of CHF 4.6 billion.Visit our website at www.sika.com.The media release and the report can be downloaded from the followinglinks:http://hugin.info/100359/R/1331903/315308.pdfhttp://hugin.info/100359/R/1331903/315309.pdf --- End of Message ---Sika AGZugerstrasse 50 Baar WKN: 858573; ISIN: CH0000587979; Index: SMCI, SPI, SPIEX, SMIEXP, SMIM;Listed: Main Market in SIX Swiss Exchange;
Datum: 31.07.2009 - 05:00 Uhr
Sprache: Deutsch
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