Sika AG: RECORD SALES WITH GROWTH IN ALL REGIONS
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Sika AG /
Sika AG: RECORD SALES WITH GROWTH IN ALL REGIONS
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* 5.6% increase in sales in local currencies to CHF 5.75 billion for 2016
* Growth in all regions
* 9 new factories and 4 national subsidiaries opened
* Disproportionately high increase in profit expected for full year
2016 saw sales climb by 5.6% in local currencies to the equivalent of CHF 5.75
billion. Investments in new factories and national subsidiaries, as well as
market launches of new products, contributed to the broad-based organic growth
of 4.7%. A record profit is expected for business year 2016.
Total sales for 2016 rose by 5.6% to the equivalent of CHF 5.75 billion. Due to
the strong figures from the previous year and shifts in demand, growth in the
markets during the fourth quarter of 2016 fell just short of the expectations.
All regions managed to lift turnover and gain further market share. Strong
above-average growth rates were recorded in the USA, Mexico, the UK, Africa,
Southeast Asia and Australia, as well as in the automotive business area.
Jan Jenisch, CEO: "We continued to successfully implement our growth strategy
and achieved an increase in sales of over 5% in the business year 2016. We also
expect record figures for operating profit and net profit. With investments in
nine new factories, four additional national subsidiaries and four acquisitions,
we have established the basis for future growth. These 17 key investments,
together with our pipeline of new products and our strong sales organization,
allow us to look with much confidence to the future. Our thanks go to our global
management team and our more than 17,000 employees whose expertise and
dedication - in the face of sometimes challenging conditions in some markets -
have again generated record sales."
GROWTH IN ALL REGIONS
Sales in the region EMEA (Europe, Middle East, Africa) rose by 4.8% in local
currencies. In the core markets of Germany, France, Spain and Italy good growth
rates were recorded. Strong above-average growth was achieved in the UK, Russia,
Eastern Europe and Africa. Sika has 18 national subsidiaries and 15 production
sites on the African continent, and continues to expand its presence. New
national subsidiaries were established in Kuwait, Cameroon and Djibouti. A new
concrete admixture production plant was opened in the Ethiopian capital Addis
Ababa and a mortar factory in Kryoneri, near Athens.
Sales in the region North America rose by 7.8% in local currency. The main
growth drivers here are the accelerated expansion of the supply chain and the
investments in the sales force in fast-growing metropolitan areas. Three
acquisitions in attractive market segments will generate momentum for future
growth. The Group was joined by L.M. Scofield, a market leader in color
additives for ready-mix concrete, and FRC Industries, a manufacturer of fibers
for concrete. The acquisition of Rmax enables the expansion of the portfolio for
building envelope, wall- and roofing insulation technologies.
The region Latin America recorded a 5.0% sales increase in local currencies.
Mexico, Argentina and Chile all developed strongly. By contrast, the continuing
economic crisis in Brazil and a significant fall in the value of some local
currencies led to a downturn in business activity. Investments in the region
include a new mortar products factory in Guayaquil, Ecuador, an automotive
factory for adhesives and acoustics solutions in Sao Paulo, Brazil, and the
establishment of a new national subsidiary in Nicaragua.
The region Asia/Pacific recorded growth of 3.6%. The dynamic performance of the
markets in Southeast Asia and the Pacific area led to strong sales gains. China
achieved positive growth figures in the second half of the year. Investments in
the region include the acquisition of Ronacrete Ltd., a leading mortar producer
in Hong Kong, and the opening of a new factory in Perth on the west coast of
Australia. A second factory for mortar and concrete admixtures was commissioned
in Saraburi, Thailand. First factories were opened in both Phnom Penh, Cambodia
and Yangon, Myanmar.
OUTLOOK
An above-average profit increase resulting in an operating profit (EBIT) between
CHF 780 and 800 million is expected for business year 2016.
In the business year 2017 Sika continues to pursue its growth strategy and
targets a 6-8% rise in sales to reach CHF 6 billion for the first time, along
with a disproportionately high increase in profit, the opening of 6 to 8 new
factories and 3 to 4 national subsidiaries.
With investments in nine new factories, four additional national subsidiaries
and four acquisitions, the basis for future growth has been established. These
17 key investments, together with the pipeline of new products and the strong
sales organization, allow the Group to look with much confidence to the future.
CONTACT
Dominik Slappnig
Corporate Communications &
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 97 countries around the world and manufactures in over 190
factories. Its more than 17,000 employees generated annual sales of CHF 5.75
billion in 2016.
The media release can be downloaded from the following link:
Media Release:
http://hugin.info/100359/R/2069958/777718.pdf
This announcement is distributed by Nasdaq Corporate Solutions on behalf of Nasdaq Corporate Solutions clients.
The issuer of this announcement warrants that they are solely responsible for the content, accuracy and originality of the information contained therein.
Source: Sika AG via GlobeNewswire
Unternehmensinformation / Kurzprofil:
Datum: 10.01.2017 - 05:00 Uhr
Sprache: Deutsch
News-ID 516579
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