SIKA ACHIEVES RECORD SALES, NET PROFIT SURGES 16%
(Thomson Reuters ONE) -
Sika AG /
SIKA ACHIEVES RECORD SALES, NET PROFIT SURGES 16%
. Processed and transmitted by Nasdaq Corporate Solutions.
The issuer is solely responsible for the content of this announcement.
* Sales growth of 8.1% (6.7% in CHF) to CHF 2,994.9 million
* Growth in all regions
* Net profit up 16.0% to CHF 285.7 million
* Continuation of the growth strategy with the foundation of a new national
subsidiary, opening of three new factories, acquisition of Bitbau Dörr in
Austria
* Confirmation of annual targets of 6-8% sales growth and disproportionately
high growth in profitability
With sales growth of 8.1% in local currency, Sika continues its successful
growth trajectory in the first half of 2017 and achieves a new sales record of
CHF 2,994.9 million. Targeted investments in new products, national subsidiaries
and factories as part of Sika's growth strategy provided growth stimuli. In the
first half of the year, the negative currency effect (-1.4%) reduced sales
growth in Swiss francs to 6.7%.
NET PROFIT UP 16.0%
The positive development of the last six years continued unabated in the first
half of 2017. Volume growth together with disproportionately low cost
development and price adjustments resulted in a further improvement in margins,
which helped to offset slightly negative currency effects and rising commodity
prices. As a result, operating profit and net profit posted new record values in
the first half of the year. Operating profit (EBIT) improved by 13.7% (+ CHF
48.4 million) to CHF 402.1 million (previous year: CHF 353.7 million). Net
profit rose significantly by 16.0% (+ CHF 39.4 million) to CHF 285.7 million
(previous year: CHF 246.3 million.).
Paul Schuler, CEO: "With a clear sales increase of 8.1% and a surge in net
profit of 16.0%, we are continuing to consistently and successfully deliver our
growth strategy. We posted double-digit growth rates in Eastern Europe, Africa,
North America, Argentina, the Pacific area and in our automotive business, and
we have clearly grown much faster than the market in a number of countries. The
positive performance in the first half of 2017, the opening of a further
national subsidiary, and the commissioning of three new factories all bring us
one step closer to achieving our strategic targets for 2020. Sika's success is
based on team effort. Thanks to the commitment of our employees and the strength
of our growth model, we can look forward to the further business performance in
the second half of 2017."
GROWTH IN ALL REGIONS
In the first half of the year, sales in the EMEA region (Europe, Middle East,
Africa) increased by 7.0% (previous year: 6.6%). The core markets Germany,
France, Switzerland, Italy and the UK achieved solid growth rates. Eastern
Europe and Africa posted double-digit growth. Bitbau Dörr, a leading
manufacturer of waterproofing systems, was acquired in Austria. Furthermore, a
new factory for concrete admixtures was opened in Tanzania and a further
national subsidiary was founded in Senegal. In Kazakhstan, concrete admixture
and mortar production in Almaty was relocated to a larger site.
At 17.4%, it was the North America region that posted the strongest growth
(previous year: 12.7%), of which 8.7% was through acquisitions. Sika boosted its
business volume significantly in the USA achieving strong double-digit growth of
around 20%, thus growing much more quickly than the North American construction
market. Targeted investments that have been made in North America over the last
few years contributed substantially to this positive business performance. These
include the investment in sales force, the acquisition of companies and the
expansion of the supply chain with new factories close to fast-growing
metropolitan areas.
In the Latin America region sales increased by 2.7% in the first half-year,
compared to 5.9% in the corresponding period of the previous year. In
particular, the large countries in the region, including Mexico and Argentina,
produced above-average performance. In Brazil, the effects of the difficult
economic and political situation continued to have a restrictive impact on
business. Furthermore, construction activity in the raw material-based countries
in the region has been subdued. In the southeast of Mexico, a new factory for
mortar products came into operation.
Sales in the Asia/Pacific region increased by 4.1% (previous year: 4.6%). The
markets in Southeast Asia, with the exception of Indonesia and Singapore,
achieved high growth rates. In Singapore, investment in state-funded residential
construction projects remained at a low level, while in Indonesia investments in
infrastructure fell. In China, the construction industry continued to stabilize
in the first half of 2017, enabling Sika to achieve high single-digit growth.
OUTLOOK 2017
The strategic targets 2020 were successfully pursued in the first half of 2017,
with new record results achieved. The strong start to the year supports the
target for the full year, which aims at a 6-8% increase in sales to more than
CHF 6 billion for the first time. Volatile and rising commodity prices present a
challenge in the current year. EBIT and net profit are once again expected to
increase at disproportionately high rates. The successful growth strategy with
the new targets for 2020 will continue in 2017. The unknown outcome of Saint-
Gobain's hostile takeover attempt remains an element of uncertainty for the
future.
KEY FIGURES HALF-YEAR 2017
-------------------------------------------------------------------------------
1/1/2016 - 1/1/2017 - Change
in CHF mn 6/30/2016 6/30/2017 in %
-------------------------------------------------------------------------------
-------------------------------------------------------------------------------
Net sales 2,806.2 2,994.9 6.7
-------------------------------------------------------------------------------
Gross result 1,559.7 1,651.4 5.9
-------------------------------------------------------------------------------
Operating profit before
depreciation (EBITDA) 439.7 488.2 11.0
-------------------------------------------------------------------------------
Operating profit (EBIT) 353.7 402.1 13.7
-------------------------------------------------------------------------------
Net profit after taxes 246.3 285.7 16.0
-------------------------------------------------------------------------------
Earnings per share in CHF 95.87 111.54 16.4
-------------------------------------------------------------------------------
Operating free cash flow 106.0 63.0
-------------------------------------------------------------------------------
-------------------------------------------------------------------------------
Balance sheet total(1) 5,099.2 5,145.4
-------------------------------------------------------------------------------
Shareholders' equity(1) 2,947.7 2,972.9
-------------------------------------------------------------------------------
Equity ratio in % (1,2) 57.8 57.8
-------------------------------------------------------------------------------
Return on capital employed
(ROCE) in % (3 ) 25.5 28.0
-------------------------------------------------------------------------------
(1) As of December 31, 2016/June 30, 2017.
(2) Shareholders' equity divided by balance sheet total.
(3) 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
-------------------------------------------------------------------------------
1/1/2016 1/1/2017 Change compared to prior year
in CHF mn -6/30/2016 -6/30/2017 (+/- in %)
-------------------------------------------------------------------------------
In In local Currency Acquisition
CHF currencies impact effect
-------------------------------------------------------------------------------
By region
-------------------------------------------------------------------------------
EMEA 1,335.1 1,371.9 2.8 7.0 -4.2 1.7
-------------------------------------------------------------------------------
North America 441.3 525.0 19.0 17.4 1.6 8.7
-------------------------------------------------------------------------------
Latin America 273.9 287.4 4.9 2.7 2.2 0.0
-------------------------------------------------------------------------------
Asia/Pacific 509.5 535.2 5.0 4.1 0.9 1.3
-------------------------------------------------------------------------------
Other segments
and activities 246.4 275.4 11.8 11.8 0.0 0.0
-------------------------------------------------------------------------------
Net sales 2,806.2 2,994.9 6.7 8.1 -1.4 2.4
-------------------------------------------------------------------------------
Products for
construction 3.1
industry 2,177.8 2,327.0 6.9 8.4 -1.5
-------------------------------------------------------------------------------
Products for
industrial 0.0
manufacturing 628.4 667.9 6.3 7.0 -0.7
-------------------------------------------------------------------------------
Conference call today, July 27, 2017 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 58 310 5000 (Europe, Asia)
+1 631 570 5613 (North America, Latin America)
+44 203 059 5862 (UK)
An operator will then connect you with Paul Schuler (CEO), Adrian Widmer (CFO)
and
Dominik Slappnig (Head Corporate Communications & IR).
The conference call will be recorded and remains retrievable for 48 hours under
the following numbers:
+41 91 612 4330 (Europe, Asia)
+1 631 982 4566 (North America, Latin America)
+44 207 108 6233 (UK)
Upon request please enter the code 14831 followed by the #sign.
FINANCIAL CALENDAR:
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 2017
Net sales first quarter 2018 Tuesday, April 17, 2018
50(th) Annual General Meeting Tuesday, April 17, 2018
Half-year report 2018 Thursday, July 26, 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 98 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/2123379/809878.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: 27.07.2017 - 05:00 Uhr
Sprache: Deutsch
News-ID 554086
Anzahl Zeichen: 13647
contact information:
Town:
Baar
Kategorie:
Business News
Diese Pressemitteilung wurde bisher 252 mal aufgerufen.
Die Pressemitteilung mit dem Titel:
"SIKA ACHIEVES RECORD SALES, NET PROFIT SURGES 16%"
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).
