Sika AG: STRONG START TO THE YEAR WITH 10.7% SALES GROWTH IN THE FIRST QUARTER OF 2017
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Sika AG /
Sika AG: STRONG START TO THE YEAR WITH 10.7% SALES GROWTH IN THE FIRST QUARTER
OF 2017
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The issuer is solely responsible for the content of this announcement.
* 10.7% sales growth in local currencies to CHF 1,389.0 million
* Dynamic growth in all regions
* Opening of one new factory, acquisition of one company
* Sales to exceed CHF 6 billion in 2017
With double-digit sales growth in the first quarter, a new sales record of CHF
1,389.0 million was set. This equates to an increase of 10.7% in local
currencies (previous year: 8.3%). A moderate currency effect (-1.7%) led to
strong sales growth in Swiss francs of 9.0%. High organic growth of 8.5% was
recorded. The solid growth in all regions was boosted by additional working days
compared with the previous year.
Jan Jenisch, CEO: "The strong start to the year is the result of our successful
strategy implementation. Our investments in new products, national subsidiaries
and factories are paying off, enabling us to exploit the potential of growth
markets for Sika quickly. We will be implementing our growth model with raised
targets for 2020, and opening eight new factories and a further three national
subsidiaries in 2017."
GROWTH IN ALL REGIONS
Sales in the EMEA region (Europe, Middle East, Africa) increased by 9.9%
(previous year: 8.7%). The core markets Germany, France, Switzerland, Spain and
Italy achieved solid growth rates. Strong above-average growth was seen in the
UK, Eastern Europe and Africa. Bitbau Dörr, a leading manufacturer of
waterproofing systems, was acquired in Austria.
At 19.2%, it was the North America region that posted the strongest growth
(previous year: 12.6%), of which 9.7% was through acquisitions. Sika boosted its
business volume significantly in the USA, achieving strong double-digit growth
of over 20%. Investments in expanding the supply chain and sales force in fast-
growing metropolitan areas, and the upswing in the construction sector,
contributed substantially to this successful business performance.
With a sales increase of 6.7% in the first quarter of this financial year,
growth in the Latin America region exceeded the 4.0% achieved in the equivalent
period of the previous year. Mexico, Argentina and Uruguay produced above-
average performance, but the consequences of the economic crisis continued to
have an impact on business in Brazil. In the southeast of Mexico, a new mortar
production facility came into operation.
Growth in the Asia/Pacific region increased to 6.8% (previous year: 4.3%). The
markets in South-east Asia and the Pacific area achieved the highest growth
rates, recording substantial rates of increase. Business in China developed
well, with double-digit sales growth in the first quarter.
OUTLOOK: SALES TO EXCEED CHF 6 BILLION IN 2017
The strong start to the year supports the outlook for the business year 2017.
Sika targets a 6-8% rise in sales to more than CHF 6 billion for the first time.
Volatile and rising commodity prices present a key challenge in the current
financial year. EBIT and net profit should continue to increase at a
disproportionately high rate. The growth strategy will be pursued in 2017 with
the opening of eight new factories and the founding of a further three national
subsidiaries.
NET SALES IN THE FIRST THREE MONTHS OF 2017
in CHF 1/1/2016- 3/31/2016 1/1/2017-3/31/2017 Year-on-year change (+/- in %)
million
---------------------------------------------------------------------------------------------
in in local Currency Acquisition
CHF currencies(1) effect effect
---------------------------------------------------------------------------------------------
By region
---------------------------------------------------------------------------------------------
EMEA 604.2 631.1 4.5 9.9 -5.4 1.2
---------------------------------------------------------------------------------------------
North America 184.1 222.2 20.7 19.2 1.5 9.7
---------------------------------------------------------------------------------------------
Latin America 130.7 144.4 10.5 6.7 3.8 0
---------------------------------------------------------------------------------------------
Asia/Pacific 234.6 253.6 8.1 6.8 1.3 1.4
---------------------------------------------------------------------------------------------
Other
segments and
activities 120.8 137.7 14.0 14.0 0 0
---------------------------------------------------------------------------------------------
Net sales
consolidated 1,274.4 1,389.0 9.0 10.7 -1.7 2.2
---------------------------------------------------------------------------------------------
Products for
the
construction
industry 969.1 1,059.4 9.3 11.2 -1.9 2.9
---------------------------------------------------------------------------------------------
Products for
industrial
manufacturing 305.3 329.6 8.0 8.9 -0.9 0
---------------------------------------------------------------------------------------------
(1) including acquisitions
FINANCIAL CALENDAR
49th Annual General Meeting Tuesday, April 11, 2017, 1 p.m.
Half-Year Report 2017 Thursday, July 27, 2017
Results first nine months 2017 Thursday, October 26, 2017
Net sales 2017 Tuesday, January 9, 2018
Media conference/analyst presentation Friday, February 23, 2018
on full-year results
50th Annual General Meeting Tuesday, April 17, 2018
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 protecting 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/2095351/792502.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: 11.04.2017 - 05:00 Uhr
Sprache: Deutsch
News-ID 535584
Anzahl Zeichen: 7867
contact information:
Town:
Baar
Kategorie:
Business News
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