Sika AG: STRONG START TO THE YEAR WITH 8.3% SALES GROWTH IN FIRST QUARTER 2016
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Sika AG: STRONG START TO THE YEAR WITH 8.3% SALES GROWTH IN FIRST QUARTER 2016
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* 8.3% sales growth in local currencies to CHF 1,274.4 million
* Growth in all regions
* Four new factories and one national subsidiary opened
* Confirmation of targets 2016
The dynamic growth trajectory continues in 2016 with a sales increase of 8.3%
(previous year: 5.1%) and the setting of a new sales record of CHF 1,274.4
million for the first quarter. The more stable exchange-rate situation resulted
in a modest currency impact (-1.7%) and very good sales growth in Swiss francs
of 6.6%. Margins continued to develop positively in the first quarter 2016.
Jan Jenisch, CEO: "We are very pleased with how the business performed in the
first quarter. Our investments in new products, national subsidiaries and
factories paid off, while a sales increase of more than 8% represents an
impressive continuation of our growth strategy. All regions contributed to the
good start to the year, with double-digit sales growth in Argentina, Colombia,
North America, Southeast Asia, the Pacific, Africa, the Middle East and our
industrial business. We will be continuing our growth strategy as planned, with
the opening of 6 to 8 new factories and 3 to 4 new national subsidiaries in the
2016 business year."
GROWTH IN ALL REGIONS
Sales in the EMEA region (Europe, Middle East, Africa) increased by 8.7%
(previous year: 1.1%). Good growth rates were achieved in Southern Europe and
the Middle East. The strongest sales growth was achieved in Africa, where there
was an increase of more than 20%. Sika's presence in Africa consists of 16
national subsidiaries and 14 production locations. Demand in the Western
European market is at a sound level. A new mortar factory was opened in
Kryoneri, near Athens, while a new national subsidiary was opened in Kuwait -
Sika's 13th in the Middle East.
At 12.6%, it was the North America region that posted the strongest growth
(previous year: 10.7%). Growth drivers include the more rapid expansion of
supply chain and the investments in sales force in the growing metropolitan
areas, together with robust construction activity. The number of production
sites for mortar and concrete admixtures in North America was increased to a
total of 20 in the past two years with four new factories in Denver, Atlanta,
Philadelphia and Vancouver plus the acquisitions of BMI and Scofield.
With a sales increase of 4.0% in the first quarter of this year, growth in the
Latin America region slowed from the 17.0% figure for the equivalent period of
the previous year. In particular, the economic crisis in Brazil and a
significant devaluation of some local currencies led to a downturn in business
activity.
Growth in the Asia/Pacific region was increased to 4.3% (previous year: 2.5%).
Significant, double-digit sales gains were once again achieved in Southeast Asia
and in the Pacific. Market demand in China remained at a low but significantly
more optimistic level than a year earlier. The first factory in Myanmar was
opened in February 2016. Sika is positioning itself with a view to benefit from
the construction boom in this burgeoning market through a new production site
for concrete admixtures in the Yangon metropolitan region. The market expansion
in Asia is completed by a new plant in Phnom Peng, Cambodia, which is also
Sika's first manufacturing plant in that country.
OUTLOOK FOR 2016: CONTINUED GROWTH
The Strategy 2018 was successfully implemented in the first quarter, enabling
our annual targets for 2016 to be confirmed. Sales growth of 6-8% is expected
for the current business year, along with an above-average rise in margins. The
growth strategy will continue in 2016 with the opening of 6 to 8 new factories
and 3 to 4 national subsidiaries.
NET SALES IN THE FIRST THREE MONTHS OF 2016
1/1/2015- 1/1/2016- Year-on-year change (+/- in %)
In CHF million 3/31/2015 3/31/2016
-------------------------------------------------------------------------------
in CHF In local Currency Acquisition
currencies(1) effect effect
-------------------------------------------------------------------------------
By region
-------------------------------------------------------------------------------
EMEA 556.0 604.2 8.7 8.7 0.0 5.0
-------------------------------------------------------------------------------
North America 157.6 184.1 16.8 12.6 4.2 0.8
-------------------------------------------------------------------------------
Latin America 151.1 130.7 -13.5 4.0 -17.5 0.0
-------------------------------------------------------------------------------
Asia/Pacific 225.0 234.6 4.3 4.3 0.0 2.3
-------------------------------------------------------------------------------
Other segments 105.6 120.8 14.4 14.2 0.2 0.0
and activities
-------------------------------------------------------------------------------
Net sales 1,195.3 1,274.4 6.6 8.3 -1.7 2.9
consolidated
-------------------------------------------------------------------------------
Products for the 934.8 969.1 3.7 5.6 -1.9 0.9
construction
industry
-------------------------------------------------------------------------------
Products for 260.5 305.3 17.2 17.9 -0.7 10.1
industrial
manufacturing
-------------------------------------------------------------------------------
(1) including acquisitions
FINANCIAL CALENDAR
48th Annual General Meeting Tuesday, April 12, 2016, 1 p.m.
Half-Year Report 2016 Friday, July 29, 2016
Results first nine months 2016 Thursday, October 27, 2016
Net sales 2016 Tuesday, January 10, 2017
Media conference/analyst presentation Friday, February 24, 2017
on full-year results 2016
CONTACT
Dominik Slappnig
Corporate Communications and
Investor Relations
+41 58 436 68 21
slappnig.dominik(at)ch.sika.com
SIKA CORPORATE PROFILE
Sika is a specialty chemicals company with a leading position in the development
and production of systems and products for bonding, sealing, damping,
reinforcing and protection in the building sector and automotive industry. Sika
has subsidiaries in 94 countries around the world and manufactures in over 170
factories. Its more than 17,000 employees generated annual sales of CHF 5.49
billion in 2015.
The media release can be downloaded from the following link:
Media Release:
http://hugin.info/100359/R/2002630/739093.pdf
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originality of the information contained therein.
Source: Sika AG via GlobeNewswire
[HUG#2002630]
Unternehmensinformation / Kurzprofil:
Datum: 12.04.2016 - 05:00 Uhr
Sprache: Deutsch
News-ID 463239
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